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This quiz consists of 5 multiple choice and 5 short answer questions through The Human Factor.

Multiple Choice Questions

1. What did the Black-Scholes model believe was constant?
(a) Growth.
(b) Volatility.
(c) Income.
(d) Meriwether's enthusiasm.

2. Who ran the London office for Long-Term?
(a) Mullins.
(b) Meriwether.
(c) Haghani.
(d) Buffet.

3. What was the result for some banks due to their involvement in the derivatives market?
(a) They went bankrupt.
(b) They made billions.
(c) They were nationally recognized.
(d) They were prosecuted.

4. Where was David W. Mullins working when Meriwether hired him?
(a) Yale School of Finance.
(b) The United Nations.
(c) Salomon Brothers.
(d) Federal Reserve.

5. In 1998, Long-Term expected prices to do what?
(a) Stay the same.
(b) Fluctuate.
(c) Fall.
(d) Rise.

Short Answer Questions

1. What financial crisis did Long-Term make it through that most of the market didn't?

2. Who suspended arbitrage operations in April 1998?

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

4. On what date did Russia declare a debt moratorium?

5. In 1996, Long-Term was four times as large as what?

(see the answer key)

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