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This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.
Multiple Choice Questions
1. Who developed the Black-Scholes model?
(a) Jack Salomon.
(b) Myron Scholes.
(c) David Black.
(d) John Meriwether.
2. What models did Long-Term follow?
(a) Black-Scholes.
(b) All of these.
(c) Value-at-Risk.
(d) Merton.
3. In 1996, Long-Term was four times as large as what?
(a) The Mexican Treasury.
(b) The U.S. Treasury.
(c) The largest hedge fund.
(d) A small European country.
4. What notable invention changed the face of trading in the 1970's?
(a) The cell phone.
(b) The computer.
(c) The video camera.
(d) The scientific calculator.
5. What financial crisis did Long-Term make it through that most of the market didn't?
(a) The Switzerland crisis.
(b) The Mexican crisis.
(c) The U.S. crisis.
(d) The Germany crisis.
Short Answer Questions
1. What affected bond trading in the 1970's?
2. What unusual event happened when Meriwether began working with Treasury futures?
3. In 1996, what was the second bank Long-Term approached about financing their credit?
4. What did a dealer from J.F. Eckstein & Co. want from Meriwether in 1979?
5. By the end of 1996, what was the status of the credit financing Long-Term wanted?
Short Essay Questions
1. What did Long-Term do to limit risk in bond trading?
2. What dictates whether or interest only securities rise or fall?
3. Why did hedge funds make money for managers?
4. When additional investors returned to the Italian market, what did Long-Term do?
5. On what did Long-Term base the claim that it was difficult to lose money with them?
6. Why did bonds lose their value in the 1970's?
7. What are relative value trades?
8. In 1996, which significant companies did Long-Term surpass in terms of assets?
9. What surprise happened when Meriwether was trading Treasury Bill futures?
10. What was Meriwether's group at Salomon given the authority to do?
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This section contains 487 words (approx. 2 pages at 300 words per page) |
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