4.

What is the maximum potential loss for a call option

buyer?
The strike price of the options contract.
The difference between the market price and the strike price.
The premium paid for the options contract.
Unlimited.

5.Company VWX has earnings per share (EPS) of $5.00 and a

price-to-earnings (P/E) ratio of 18. If the industry average
P/E ratio is 15 and the industry average EPS is $4.50, what is
the estimated stock price using the P/E ratio method?
$90.00
$76.50
$81.00
$67.50

6.A trader buys a gold futures contract at $1,500 per ounce

and later sells it at $1,550 per ounce. If each contract
represents 100 ounces, what is the trader's profit or loss?
$5,000 profit
$50,000 profit
$50,000 loss
$5,000 loss

7.In the secondary market, who determines the price of

securities?
issuers and government
The Stock Exchange
buyers and sellers
government and commercial bank

8.Company XYZ issued a zero-coupon bond with a face value

of $1,000 and a maturity of 5 years. If the required rate of
return is 6%, what is the estimated bond price?
$747.26
$921.43
$650.39
$800.68

9.What is the primary objective of a future contract?

Speculating on the future price movements of an underlying asset
Managing credit risks associated with debt instruments
Hedging against inflation risks
Providing a way to diversify investment portfolios

10.Company LMN has earnings per share (EPS) of $2.50 and

a price-to-earnings (P/E) ratio of 20. What is the estimated
stock price using the P/E ratio method?
$40.00
$50.00
$45.00
$55.00

11.What is the price of a bond with a face value of $1,000, a

coupon rate of 6%, and a yield to maturity of 5% in 5 years?
$1,020.38
$1,043.29
$1,000
$1,060.39

12.If the reference price of CLC stock in HOSE is 23,450 VND.

What are the valid ceiling price and floor price of the stock ?
25,000 VND and 22,000 VND
25,000 VND and 22,000 VND
25,091.5 VND and 21,808.5 VND
25,050 VND and 21,850 VND

13.High inflation in the market has a negative impact on the

stock market. Investors who hold stocks may participate in
which contract to minimize the negative market risk?
Call Option contract
Swap contract
Spot contract
Put Option contract

14.What is the primary function of options for corporations?

Speculating on future interest rate movements
Raising capital through issuing new shares
Providing employees with stock-based incentives
Hedging against commodity price risks
15.Which of the following is an example of a derivative
instrument?
Mutual fund share
Bank loan agreement
Corporate bond
Interest rate swap

16.The term "call provision" in bond agreements refers to:

The bondholder's right to sell the bond back to the issuer at a
predetermined price
The bondholder's right to convert the bond into shares of the
issuer's common stock
The bond issuer's ability to increase the coupon rate on the bond
The bond issuer's ability to pay off the bond early

17.Investors who predict an increase in asset prices in the

future can participate in which of the following options
contracts to have potentially profit?
Long Put option
Short Put Option
Long Call option
Short Call Option

18.XYZ Corporation has reported the following historical

earnings per share (EPS): Year 1: $3.00, Year 2: $3.50, Year
3: $4.00. The company plans to pay out 60% of its earnings
as dividends, and the dividends are expected to grow at a
rate of 5% annually from Year 3. If the required rate of
return is 10%, what is the stock's price?
$32.58
$43.04
$35.13
$37.52

19.When is an options contract considered "Out of the

money" for a put option?
When the options contract has expired.
When the strike price is lower than the market price of the
underlying asset.
When the strike price is higher than the market price of the
underlying asset.
When the strike price is equal to the market price of the underlying
asset.

20.A trader buys a call option on a stock index with a strike

price of $2,500. The premium paid is $40, and the market
price of the stock index at expiration is $2,550. What is the
trader's profit or loss?
$10
$40
$60
$50

21.A trader sells a put option on a commodity with a strike

price of $80. The premium received is $10, and the market
price of the commodity at expiration is $75. What is the
trader's profit or loss?
$10
$15
$0
$5

22.What is the main objective of a stockholder?

Speculating on the future price movements of an asset
Receiving fixed interest payments
Exchanging one currency for another at a specified rate
Acquiring ownership and sharing in the company's profits

23.Daily Trading Limit in Stock Exchange is

the maximum amount of securties that can be traded in a trading
session
the ability of securities that can be trade daily
the highest and lowest limit of the price range for a stock during a
trading session
there is no Daily Trading Limit in Stock Exchange

24.The value of a bond is determined by what factors?

Company's debt-to-equity ratio and industry growth rate.
Fluctuations in the stock market indices and future expectations.
Market interest rate and the maturity of the bond.
Company's market capitalization and annual revenue.
25.What is the initial margin requirement for a futures
contract?
It is a fixed percentage of the contract value set by the exchange.
It is equal to the full contract value.
There is no initial margin requirement for futures contracts.
It varies depending on the contract size and market conditions.

26.A trader sells a soybean futures contract at $9.00 per

bushel and later buys it back at $8.50 per bushel. If each
contract represents 5,000 bushels, what is the trader's profit
or loss?
$2,500 profit
$5,000 profit
$2,500 loss
$5,000 loss

27.The daily price limit on a futures contract is reached. If a

trader has a long position in the contract, what is the
potential impact on their profit or loss?
Decreased profit
Loss
No impact
Increased profit

28.Which of the following is an objective of forward

contracts?
Transferring credit risk from one party to another
Facilitating international trade by managing currency exchange risk
Speculating on the future price movements of an underlying asset
Providing a flexible tool for interest rate management

29.A trader enters into a futures contract on a volatile

commodity. The initial margin required is $10,000, and the
maintenance margin is $7,500. If the trader's account
balance falls to $7,000, what action must the trader take?
Deposit additional funds to meet the maintenance margin
Wait for the account balance to recover
Increase the position size to offset the loss
Close the position

30.Which of the following can affect the price of a bond?

Changes in interest rates
Credit rating downgrades or upgrades
All answer are correct
Market demand for bonds

31.Which of the following is a key difference between

futures contracts and forward contracts?
Futures contracts are standardized and traded on exchanges, while
forward contracts are customized and traded over-the-counter.
Forward contracts have daily settlement, while futures contracts
settle at expiration only.
Futures contracts have higher counterparty risk compared to
forward contracts.
Futures contracts have longer maturities compared to forward
contracts.

32.Company ABC issued a bond with a face value of $1,000,

a coupon rate of 5%, and a maturity of 10 years. If the
required rate of return is 7%, what is the estimated bond
price?
$1,030.11
$859.53
$1,000
$972.36

33.Company DEF has a dividend per share of $3.00 and a

constant dividend growth rate of 4%. If the required rate of
return is 8%, what is the estimated stock price using the
Discount Dividend Model?
$85.00
$75.00
$80.00
$78.00

34.In Option Contract, the Seller of the Right to Buy is

Long Put Option
Long Call Option
Short Put Option
Short Call Option

35.Which of the following is an objective of bonds?

Hedging against price fluctuations
Preserving capital and providing a steady income stream
Speculating on future price movements
Generating income through dividend payments

36.A zero-coupon bond:

Has a coupon rate of zero percent
Is issued by the government only
Cannot be traded on the secondary market
Pays no interest to the bondholder

37.What is a Limit Order (LO) in stock trading?

An order to buy or sell a stock at a specific price or better
An order to buy or sell a stock at the best available price
An order to buy or sell a stock at the current market price
An order to buy or sell a stock with no specific price limit

38.Question: When a company distributes dividends in the

form of additional shares (stock dividends), it affects the
company's Earnings Per Share (EPS) to ________

stay the same

not change
decrease
increase

39.The profit or loss of a future contract depends on

The quantity of the underlying asset
The interest rate in the market
The market price of the underlying asset
The delivery date

40.What is the primary function of a bond for corporations?

Offering exposure to a diversified portfolio
Hedging against currency exchange risks
Generating dividend income for shareholders
Providing a way to raise capital

41.How will the bond price change when the market interest
rate decreases and lower than the nominal interest rate of
the bond?
The bond price will decrease and be less than its face value.
The bond price will increase and be greater than its face value.
The bond price is being sold at its face value.
The bond price remains unchanged as the market interest rate does
not affect the selling price.

42.What is the primary function of bonds for corporations?

Speculating on commodity prices
Providing insurance against credit default risks
Managing foreign exchange risks
Financing long-term capital expenditures

43.What is the objective of futures contracts?

Transferring credit risk from one party to another
Providing a flexible tool for interest rate management
Speculating on the future price movements of an underlying asset
Facilitating international trade by managing currency exchange risk