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This quiz consists of 5 multiple choice and 5 short answer questions through Tug-of-War.

Multiple Choice Questions

1. What hedge fund caused a pound devaluation in Europe but made over a billion dollars?
(a) Quantum Fund.
(b) Treasury Fund.
(c) Endowment Fund.
(d) Millenium Fund.

2. Who developed the Black-Scholes model?
(a) David Black.
(b) John Meriwether.
(c) Jack Salomon.
(d) Myron Scholes.

3. When Meriwether increased his position in Treasury futures, what did he expect the market to do?
(a) Drop substantially.
(b) Rise sharply overnight.
(c) Perform typically.
(d) Collapse.

4. In 1996, the first bank Long-Term approached regarding credit deemed Long-Term as what?
(a) Brilliant.
(b) A great investment.
(c) Greedy.
(d) Too risky.

5. What is the method of paying a percentage of a bond called?
(a) A bond fee.
(b) A percentage price.
(c) A trim.
(d) A haircut.

Short Answer Questions

1. Where did Meriwether work in 1979?

2. Who became the temporary CEO of Meriwether's group when scandal hit?

3. What was J.F. Eckstein & Co. primarily working on in 1979?

4. Why did Long-Term trade in Italy?

5. Who ran the London office for Long-Term?

(see the answer key)

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