Answer Key to Study Questions for the Final

Here is the answer key to the sample multiple choice problems. Please let me know if you think there are any errors. **Some of these have been corrected. Thanks M.D.**

1-C, 2-A, 3-C, 4-E, 5-C, 6-A, 7-C,
8-A, 9-B, 10-A, 11-C or E (essentially the same thing), 12-D, 13-D,
14-B, 15-A or C*, 16-D*, 17-C, 18-A, 19-C,
20-E, 21-A, 22-C, 23-A, 24-B, 25-B

* Sorry about the editing issues on 15 and 16. For 15, alternatives A and C are the same and are the correct choices. For 16, again, A and C are the same, but the correct answer is D.

Just so we're clear:

When bond prices and interest rates are negatively related.

When you write an option, you are under the obligation to deliver or accept delivery of the underlying security if the buyer of the option chooses to exercise that option.

Good luck!