Which of the following are interest-bearing instruments?
I. Certificates of deposit
II. Treasury bills
III. Treasury notes
IV. Banker's acceptances

• A.II, III, and IV only
• B.I and III only
• C.I, III, and IV only
• D.I and IV only

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Which is more likely to be a short-term investment objective than a long-term investment objective?

• A.Maximize yield
• B.Preservation of capital
• C.Generation of income
• D.Diversification of investments

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A firm that thinks interest rates are going to rise is likely to:

• A.hold more fixed-rate investments than floating-rate investments.
• B.equally distribute its investments between fixed and floating rate.
• C.hold more floating-rate than fixed-rate investments.

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A treasury manager expects the price of a commodity to be highly volatile between the time of option purchase and exercise. Which option style would provide the greatest flexibility?

• A.European Style
• B.Bermuda Style
• C.American Style
• D.Cayman Style

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A put option is out of the money when the asset price:

• A.exceeds the strike price.
• B.is less than the strike price.
• C.is equal to the strike price.
• D.is unchanged relative to the purchase price.

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