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This quiz consists of 5 multiple choice and 5 short answer questions through Bank of Volatility.

Multiple Choice Questions

1. What was the first horrible month Long-Term had?
(a) July, 1998.
(b) August, 1998.
(c) It never had a horrible month.
(d) June, 1998.

2. What was the typical scenario for bond investors in 1994?
(a) Few invested in bonds.
(b) Substantial gains.
(c) Loss.
(d) Minimal gains.

3. In 1998, what were many hedge funds selling insurance against?
(a) The Latin market.
(b) Falling prices.
(c) The U.S. Treasury.
(d) Rising prices.

4. What did the banks and investors use to estimate Long-Term's assets?
(a) History of investments.
(b) All of these.
(c) Net worth of investors.
(d) Their exposure.

5. In 1996, how much did Long-Term have in assets?
(a) $500 million.
(b) $120 million.
(c) $140 billion.
(d) $1 billion.

Short Answer Questions

1. When markets get jumpy, what begins to rise?

2. Where were Italian bonds sold by Long-Term?

3. Why did Rosenfeld choose not to co-found Kapor's project?

4. When did Long-Term start losing money?

5. What was Long-Term's signature trade based on?

(see the answer key)

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