View a FREE sample

This quiz consists of 5 multiple choice and 5 short answer questions through On the Run.

Multiple Choice Questions

1. In 1994, why did the yield raise on the thirty year Treasury bond?
(a) It rose 5%.
(b) It dropped 16%.
(c) It dropped 10%.
(d) It rose 16%.

2. What type of strategy did Long-Term employ?
(a) Low risk.
(b) Whatever was dictated by the market.
(c) High risk.
(d) Moderate risk.

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

4. What notable company went bankrupt in the 1970's?
(a) Penn Weapons Industry.
(b) Penn Central Railroad.
(c) Penn North Distillery.
(d) Penn Coal.

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

Short Answer Questions

1. What year did Meriwether hire Myron Scholes?

2. Who developed the Black-Scholes model?

3. In the 1970's, what type of trading was considered dull?

4. What did Long-Term do with off-the-run bonds?

5. What did Long-Term do when IOs started to fall?

(see the answer key)

This section contains 175 words (approx. 1 page at 300 words per page) View a FREE sample