Which of the following is true about options arbitrage (assuming put-call parity is violated)? 1. Profit is earned at the time of portfolio entry (i.e. when you buy or short-sell your positions) 2. Profit is earned at the time of portfolio exit (i.e. when you close out all your positions) 3. Profit is guaranteed no matter what the stock price is at expiry 4. It costs nothing to perform options arbitrage 5. Options arbitrage is always impossible to achieve

A portfolio consisting of a stock position and an option position is generally referred to as:

The yield curve is normally:

The time value of money (TVM) formula is used for __________ whereas Euler’s number is used for __________.

Which of these qualities make a population sample adequate for statistical analysis? 1. It is reasonably large. 2. It reasonably resembles a normal distribution. 3. It is reasonably random. 4. There are a variety of continuous and discreet variables.

John bought one Jan 40 call option on AMN with the premium of $6/share and wrote one Jan 45 call option on the same stock with the premium of $2/share. At the expiration date, the stock price of AMN is $54/share. What’s his total profit/loss?

On October 13, John bought one January futures contract on copper at the price of 75 cents per pound. There are 25,000 pounds of copper in each contract. The futures price was 82 cents per pound on December 30. What’s John’s profit between October 13 and December 30?

What does the price of an annuity represent?

The general formula that we use to compute the price of a single stock futures contract is based on which of the following?

Short answer Instructions-   On this exam you must answer a single free response question.  The question is worth 10  points, be as concise as possible.  Treatment of hemoglobin with low concentrations of urea (a chaotropic agent that at high concentrations will completely denature proteins) results in the disruption of the α and β-subunit interfaces.  This disruption will cause all four subunits to dissociate resulting in the loss of the normal quaternary structure hemoglobin exhibits, BUT the subunits will retain their tertiary structure and will still function in oxygen binding.  Given this information answer the following questions:  Will the oxygen-binding curve of hemoglobin in low concentrations of urea be sigmoidal or hyperbolic (simply state “sigmoidal” or “hyperbolic”) (2.5 points)?  Will the oxygen-binding curve of hemoglobin in low concentrations of urea have a higher or lower affinity for oxygen relative to hemoglobin under normal conditions (simply state “higher” or “lower”) (2.5 points)?  Now state WHY you think hemoglobin has a lower or higher affinity for oxygen when placed in a solution with low concentrations of urea (5 points)?