View a FREE sample

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) Mullins.
(b) Meriwether.
(c) Buffet.
(d) Haghani.

2. What did Black and Scholes think price changes were?
(a) Smart corrections.
(b) Random events.
(c) Dangerous.
(d) Common occurences.

3. What did Meriwether warn his investors against in 1994?
(a) A repeat performance.
(b) Further growth.
(c) Not investing enough with Long-Term.
(d) His early retirement.

4. What type of government paper was bought in Italy?
(a) Fluctuating rate.
(b) Italian money.
(c) Floating rate.
(d) Deeds to monuments.

5. Where were Italian bonds sold by Long-Term?
(a) Cayman Islands.
(b) Under the table.
(c) Directly to investors.
(d) Swaps.

Short Answer Questions

1. Who developed the Black-Scholes model?

2. What were the models Long-Term used unable to predict?

3. How much money did Meriwether need to start Long-Term?

4. What notable invention changed the face of trading in the 1970's?

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

(see the answer key)

This section contains 163 words (approx. 1 page at 300 words per page) View a FREE sample