Page | 1
FINA 3315 FINAL 2026 ACTUAL
QUESTIONS WITH VERIFIED
ANSWERS.
If the Canadian dollar became stronger relative to the U.S.
dollar, the price of - correct answer-a call option on the
Canadian dollar will increase.
Which one of the following actions would be the most
appropriate hedge to a short sale of common stock? - correct
answer-purchase of a call
The commission charged when shares of an openend mutual
fund are purchased is called a - correct answer-front-end load.
The futures market contains two primary types of traders:
hedgers and speculators. In this context, hedgers: - correct
answer-trade futures contracts because of a need to protect a
position in an underlying commodity.
, Page | 2
Investors who seek triple (federal, state, and local) tax free
income should invest in ________ bond funds. - correct
answer-single-state municipal
Technical analysis is so called because it relies on sound
scientific principles rather than intuition. - correct answer-false
Behavioral finance suggests that investors react to new
information in an efficient manner such that security prices
accurately reflect the new information. - correct answer-false
Writers of option contracts - correct answer-earn a profit when
the option expires without being exercised.
Which of the following is an example of a tangible
asset? - correct answer-real estate
NZMA stock is currently selling for $128. Which of the following
options is "in the money"? - correct answer-February 125 call
, Page | 3
Warrants are options, often attached to bond issues ,to make
the bonds more attractive to investors. - correct answer-true
Hedging in the commodities market is a strategy primarily used
by - correct answer-by producers and processors of
commodities.
Mutual fund investors delegate all of the following decisions to
the fund's managers EXCEPT - correct answer-how to allocate
investments among different classes of assets such as stocks,
bonds, cash and real estate.
The seller of a futures contract in euros hopes that the dollar
will strengthen against the euro. - correct answer-true
Market return is estimated from the average return on a large
sample of stocks such as those in the Standard & Poor's500
Stock Composite Index. - correct answer-true
If the purchaser of a futures contract fails to meet a margin call,
- correct answer-his/her contract will be sold at the current
market price.
, Page | 4
A put option has a strike price of $32. The current price of the
stock is $34. The put option is said to be"in the money." -
correct answer-false
Which of the following strategies appeal to investors who place
primary emphasis on the storage of value aspects of an
investment?
I. buy and hold
II. shortterm trading
III. quality longterm growth
IV. consistent dividend record - correct answer-I, III and IV only
Heather places an order to buy 525 shares of stock. This is an
order for - correct answer-five round lots and one odd lot
When a person sells a common stock short, she or he is betting
that the price of the stock will fall. - correct answer-true
Including foreign investments in a portfolio - correct answer-
provides potential benefits from changes in currency values.
FINA 3315 FINAL 2026 ACTUAL
QUESTIONS WITH VERIFIED
ANSWERS.
If the Canadian dollar became stronger relative to the U.S.
dollar, the price of - correct answer-a call option on the
Canadian dollar will increase.
Which one of the following actions would be the most
appropriate hedge to a short sale of common stock? - correct
answer-purchase of a call
The commission charged when shares of an openend mutual
fund are purchased is called a - correct answer-front-end load.
The futures market contains two primary types of traders:
hedgers and speculators. In this context, hedgers: - correct
answer-trade futures contracts because of a need to protect a
position in an underlying commodity.
, Page | 2
Investors who seek triple (federal, state, and local) tax free
income should invest in ________ bond funds. - correct
answer-single-state municipal
Technical analysis is so called because it relies on sound
scientific principles rather than intuition. - correct answer-false
Behavioral finance suggests that investors react to new
information in an efficient manner such that security prices
accurately reflect the new information. - correct answer-false
Writers of option contracts - correct answer-earn a profit when
the option expires without being exercised.
Which of the following is an example of a tangible
asset? - correct answer-real estate
NZMA stock is currently selling for $128. Which of the following
options is "in the money"? - correct answer-February 125 call
, Page | 3
Warrants are options, often attached to bond issues ,to make
the bonds more attractive to investors. - correct answer-true
Hedging in the commodities market is a strategy primarily used
by - correct answer-by producers and processors of
commodities.
Mutual fund investors delegate all of the following decisions to
the fund's managers EXCEPT - correct answer-how to allocate
investments among different classes of assets such as stocks,
bonds, cash and real estate.
The seller of a futures contract in euros hopes that the dollar
will strengthen against the euro. - correct answer-true
Market return is estimated from the average return on a large
sample of stocks such as those in the Standard & Poor's500
Stock Composite Index. - correct answer-true
If the purchaser of a futures contract fails to meet a margin call,
- correct answer-his/her contract will be sold at the current
market price.
, Page | 4
A put option has a strike price of $32. The current price of the
stock is $34. The put option is said to be"in the money." -
correct answer-false
Which of the following strategies appeal to investors who place
primary emphasis on the storage of value aspects of an
investment?
I. buy and hold
II. shortterm trading
III. quality longterm growth
IV. consistent dividend record - correct answer-I, III and IV only
Heather places an order to buy 525 shares of stock. This is an
order for - correct answer-five round lots and one odd lot
When a person sells a common stock short, she or he is betting
that the price of the stock will fall. - correct answer-true
Including foreign investments in a portfolio - correct answer-
provides potential benefits from changes in currency values.
