7 short answer questions. All answers under 75 words.
1. What are the advantages and disadvantages of investing in commercial real estate? (75 words or less)
2. What are the potential beneficial uses of derivatives? What are the potential risks?(75 words or less)
3. Briefly describe how technicians approach investing in stocks? What is their philosophy. Waht information do they rely upon?(75 words or less)
4. What are the advantages and disadvantages of investing in mutual funds? (75 words or less)
5. Assume you buy a 12-year, $1,000 par value zero-coupon bond that provides a 10 percent yield. Almost immediately after you buy the bond, yields go down to 8 percent. What will be your gain on the investment?
6. Assume a stock is selling for $40 with options available at 40, 45, and 50 strike prices. The 45 call option price is at $3. What is the intrinsic value of the 50 call? Is the 45 call in the money?
7. A bond with 7 years to maturity currently sells for $1,000 with a 9 percent coupon rate. What would be the new price of the bond if interest rates in the marketplace on similar bonds are now 8 percent? Interest is paid semiannually.