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This quiz consists of 5 multiple choice and 5 short answer questions through Dear Investors.

Multiple Choice Questions

1. Who ran the London office for Long-Term?
(a) Buffet.
(b) Mullins.
(c) Meriwether.
(d) Haghani.

2. How was Meriwether's career affected following the Treasury bill deal?
(a) He became a regulation advocate.
(b) He became a public speaker.
(c) He was made partner.
(d) He lost his job.

3. Who developed the Black-Scholes model?
(a) David Black.
(b) Myron Scholes.
(c) Jack Salomon.
(d) John Meriwether.

4. How much money did Meriwether need to start Long-Term?
(a) $1 billion.
(b) $50 million.
(c) $100,000.
(d) $2.5 billion.

5. What level of risk did Long-Term offer?
(a) None.
(b) High.
(c) Low.
(d) Medium.

Short Answer Questions

1. Where was the London office for Long-Term located?

2. What did Black and Scholes think price changes were?

3. How long did Long-Term expect their investors to commit?

4. Once in business, what did Long-Term have an easy time getting from banks?

5. Meriwether was threatened with what, if his Treasury bill deal did not pan out?

(see the answer key)

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