The Van Buren Growth Fund has its first breakpoint at $10,000, and its second breakpoint at $25,000. You have a customer for whom this fund is suitable and has told you he would like to invest $8,000 at this time. Without further discussion, you process the client’s purchase order.

For the customer who is seeking to hedge a short stock position, which of these strategies can provide some degree of protection?

I.    buy limit order

II.   long call

III.  short put

IV.  buy stop order

Trades appear on Tape A as follows:

XYZ  49……..XYZ   48.95……..XYZ  48.90…….XYZ  49.05

Your customer’s 100 share order to sell XYZ at 49 stop, GTC placed prior to the above trade reports would be executed at:

The State of New Mexico has outstanding $100,000,000 of 5.5% general obligation debt maturing 7/1/35, callable in 2 years at 100½. If the State issues new GOs with a 4.5% coupon in sufficient quantity to retired the 5.5% bonds in 2 years when callable, and escrows the money for that specific purpose, this is referred to as:

One of the best ways to hedge against loss when long a listed stock is to acquire a long put position. As such, your client who had purchased 100 shares of Alpha Beta common six months ago at 12.40 takes your advice and buys 1 Alpha Beta May 20 put at 3 with the stock trading at 22.40 to protect against erosion of the 10 point unrealized capital gain. Which of the below statements is correct?

On December 30th, with no other gains or losses for the year, Mr. Mickelson liquidated 300 shares of Ford common at $10 in which he had a cost basis of $20. Because of his long-term bullish belief in Ford, he acquired 300 shares of Ford at $11 on January 10th. His year-end loss of $3,000 is:

Gamma Medical, a domestic NASDAQ listed company, has each of the below investments in its corporate investment portfolio. Identify the one with the best after-tax yield, assuming a 21% corporate tax bracket.

With the Fed engaging in a policy of tightening the money supply, interest rates are on the rise. The market price of which of the following issues would likely decline the greatest dollar amount?

During normal trading hours, trades in listed stocks must be reported to the appropriate ‘tape’

Prior to the execution of a short sale of stock, it is the responsibility of the member firm handling the order to obtain an appropriate level of certainty that the shares are available for borrowing and within a time frame which will allow regular way delivery. the regulation which requires this is: