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

Multiple Choice Questions

1. What affected bond trading in the 1970's?
(a) The international monetary crisis.
(b) The price of commodities.
(c) The Vietnam War.
(d) The democratic elections.

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

3. What group did Meriwether found in 1977?
(a) The Commanders.
(b) The Arbitrage Group.
(c) The Meegen Group.
(d) Smith & Meriwether Co.

4. During the time period in "Hedge Fund", how many people were millionaires due to the stock market?
(a) 1 million.
(b) 20 million.
(c) 6 million.
(d) 5 million.

5. How much of the face value of a bond do buyers typically pay?
(a) 25%.
(b) 15%.
(c) 1%.
(d) 10%.

Short Answer Questions

1. What unusual event happened when Meriwether began working with Treasury futures?

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

3. What did a dealer from J.F. Eckstein & Co. want from Meriwether in 1979?

4. Where did Meriwether work in 1979?

5. What did the Black-Scholes model believe was constant?

(see the answer key)

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