A trader seeking to sell a very large block of stock for her client will most likely execute the trade in a(n):
A. quote-driven market.
Brokered market.
C. order-driven market.
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If the implied volatility for options on a broad-based equity market index goes up, then it is most likely that:
A. The broad-based equity market index has gone up in value.
B. Market interest rates have gone up.
C. The general level of market uncertainty has gone up.
Based on put-call parity for European options, a synthetic put is most likely equivalent to a:
A. Short call,long underlying asset,short bond.
B. Long call,short underlying asset,long bond.
C. Long call,long underlying asset,short bond.
An investor notices that the price of an American call option is above the price of a European call option with otherwise identical features. What is the most likely reason for this difference?
A. The options are deep-in-the-money.
B. The underlying will go ex-dividend.
C. The options are close to expiration.
Tonya Tucker, CFA, is a financial analyst at Bowron Consolidated. Bowron has numerous subsidiaries and is actively involved in mergers and acquisitions to expand its businesses. Tucker analyzes a numb
A. Priority of Transactions.
B. Loyalty.
C. Material Nonpublic Information.