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

Multiple Choice Questions

1. Who helped Meriwether raise money for Long-Term?
(a) Warren Buffet.
(b) No one.
(c) Salomon Brothers.
(d) Merrill Lynch.

2. How much money did Rosenfeld's business bring in?
(a) A couple thousand.
(b) Hundreds of thousands.
(c) Five million.
(d) Two million.

3. What did Long-Term do with off-the-run bonds?
(a) Loan them to other firms.
(b) Hold them for profit.
(c) Unload them quickly.
(d) Avoid them.

4. Why did Rosenfeld choose not to co-found Kapor's project?
(a) He was too interested in finance.
(b) He was too interested in travel.
(c) He did not like Kapor.
(d) He was competitive with Kapor.

5. In order for Meriwether's Treasury futures investment to work, what did he need market prices to do?
(a) None of these.
(b) Converge.
(c) Fluctuate drastically.
(d) Remain the same.

Short Answer Questions

1. Where did Meriwether work in 1979?

2. What did Meriwether do with his staff?

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

4. When Meriwether increased his position in Treasury futures, what did he expect the market to do?

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

(see the answer key)

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