Why does she call her book Looking for Trouble？

in a clothes shop once. It was strange. The man was hiding a yellow sweater inside his coat. I thought he had stolen it, so I caught him. We found later that his wife gave him the sweater for his birthday, but he hated it. He just wanted to return it to the shop for money, but he didn’t want his wife to see him! We soon let him go. Another day, a man called Bob went into a bank on Sixth Street. He wrote on the back of an envelope, “Give me the money! Or I’ll kill you. ” and gave it to the bank clerk. She gave him $100,000 and the man ran away. Then we received a phone call from the bank clerk. She told us to go to the man’s house in Candy Town and get him. We caught him as soon as he got out of the elevator. He couldn’t believe that we found him so quickly. We told him that the front of the envelope he used had his name and address on it!

小题1:What does Mr. Smith do？

A. A bank clerk

B. A policeman

C. A thief

小题2:Mr. Smith caught the man in the clothes shop ___________.

A. by exchange

B. by mistake

C. by accident

小题3:Why did the man return the sweater to the shop？

A. Because he didn’t want his wife to see it

B. Because he liked money more than the sweater

C. Because he hated it and wanted to get the money back

小题4:Bob was caught so quickly because ___________.

A. his address was found on the envelope he used

B. he received a phone call from the bank clerk

C. the police waited for him outside the elevator

小题5:What do you think of Bob？

A. He is brave

B. He is careful

C. He is careless

A.She is threatened by her ex-husband

B.She still loves him despite of the murder

C.She still clings to the past and the memory she shares with Lloyd

D.She is afraid that once he is out from the institution, he will be after her

64, so people often made a mistake when they wanted the cinema.

One evening the telephone bell rang and Mrs Jones answered it. A tired man said, “At what time does your last film begin？”

“ I’m sorry,” said Mrs Jones, “but you have the wrong number. This is not the cinema.”

“Oh, it began twenty minutes ago,” said the man. “I’m sorry about that. Goodbye.”

Mrs Jones was very surprised, so she told her husband. Mr Jones laughed and said, “The man’s wife wanted to go to the cinema, but he was feeling tired, so he telephoned the cinema. His wife heard him, but she didn’t hear you. Now they will stay at home this evening, and the husband will be happy.

1.What can you conclude from the story？()

A.The man on the phone was not interested in films.

B.The man on the phone was ratherclever.

C.The man’s wife was fond of films.

D.The telephone companies are inefficient sometimes.

2.What do you think the man’s wife wanted to do that evening？()

A.To stay home with her husband.

B.To find out when the last film started.

C.To go to the cinema with her husband.

D.To eat out with her husband and then go to the cinema.

3.According to Mr Jones, why didn’t the man on the phone want to go to the cinema？()

A.Because he had seen the film before.

B.Because he was feeling very tired that evening.

C.Because the film wasn’t worth seeing.

D.Because the film had started already.

4.Why was Mrs Jones so surprised at a a phone call one evening？()

A.Because the call was from a stranger.

B.Because the man on the phone knew her name.

C.Because the man on the phone asked a question and then answered it himself.

D.Because the man on the phone invited her to the cinema.

5.Why do people often telephone Mrs Jones when they want the cinema？()

A.Because she lives next door to the cinema.

B.Because she knows the cinema program very well.

C.Because her telephone number is similar to that of the cinema.

D.Because the telephone

A．She likes his money and pretending that she,too, is wealthy．

B．She feels that she deserves to be punished for her affair．

C．She is afraid that he will hurt her if she leaves．

D．Her husband is more abusive than Tom, so Tom looks better to her．

Tess Mulroney, a veteran options investor, wishes to do some speculating and hedging with options, but isn’t sure the derivatives currently available are attractively priced. Before making any transactions, Mulroney puts her calculator to work to determine a fair price for the options.

First, Mulroney seeks to protect a large variable-rate investment. She has loaned $40 million to her nephew’s construction company. The loan is payable in one year, and the current interest rate is 7.6 percent. Based on data provided by her brokerage house, Mulroney believes interest rates will fall sharply over the next year, with a 70 percent chance of a decline to 5.9 percent and a 30 percent chance of a decline to 4.7 percent.

To protect her cash flows, Mulroney is considering the purchase of a 6.2 percent floor. Mulroney knows a banker who writes such options, but she must come to him with a price in mind.

Next on Mulroney’s list is call options on Merrill Materials stock. She has obtained the followingassumptions through a subscription options service:

The stock trades for $35 per share.

The chance of an upward movement over the next year is 60 percent.

The likely downward movement is 20 percent.

At-the-money calls currently sell for $4.75.

Despite her experience, Mulroney knows she always has more to learn. So she then reviews some technical material on options that she found on the Internet. Mulroney spends the next hour reading up on sensitivity factors related to option pricing.

Later that day, Mulroney meets with Ben Glanda, her financial adviser. He has prepared some investment recommendations and advice for Mulroney.

His first suggestion addresses a series of investments Mulroney was considering. She had proposed buying a stock, buying a European put option on the stock, and writing a call option. Glanda has proposed an alternative investment that will be simpler to make.

Next Glanda attempts to convince Mulroney to start using an alternate method for valuing her options. Glanda suggests using the Black-Scholes-Merton model because of its precision and ability to consider more factors, but Mulroney prefers the binomial model because it requires fewer assumptions.

Mulroney doesn’t like the Black-Scholes Merton model for the following reasons:

It does not work for American options.

It does not consider volatility of interest rates.

It does not reflect the compounding of returns.

It does not work for assets that generate cash flows.

Part 6)

If Glanda is attempting to duplicate the effects of Mulroney’s proposed stock and option investment, he should recommend the:

A) sale of a riskless bond.

B) purchase of a riskless bond.

C) purchase of a stock.

D) sale of a stock.

r services．The second【C1】______is to sell the product．The second purpose might be more important to the manufacturers than the【C2】______．The manufacturers go beyond only telling consumers about their products．They also try to persuade customers to buy the【C3】______by creating a desire【C4】______it．Because of advertisement，consumers think that they want something that they do not need．After buying something，the purchaser cannot always explain why it was【C5】______．

Even【C6】______the purchaser probably does not know why he or she bought something，the manufacturers【C7】______．Manufacturers have analyzed the business of【C8】______and buying．They know all the different motives that influence a consumer's purchase—some rational and【C9】______emotional．Furthermore，they

take advantage of this【C10】______.

Why【C11】______so many products displayed at the checkout counters in grocery stores？ The store management has some good【C12】______. By the time the customer is【C13】______to pay for a purchase, he or she has already made rational. thought-out decisions【C14】______what he or she needs and wants to buy. The【C15】______

feels that he or she has done a good job of choosing the items. The shopper is especially vulnerable at this point. The【C16】______of candy, chewing gum, and magazines are very attractive. They persuade the purchaser to buy something for emotional, not【C17】______motives. For example, the customer neither needs nor plans to buy candy. but while the customer is standing, waiting to pay money, he or she may suddenly decide to buy【C18】______

This is exactly【C19】______the store and the manufacturer hope that the customer will【C20】______

The customer follows his or her plan.

【C1】

Tess Mulroney, a veteran options investor, wishes to do some speculating and hedging with options, but isn’t sure the derivatives currently available are attractively priced. Before making any transactions, Mulroney puts her calculator to work to determine a fair price for the options.

First, Mulroney seeks to protect a large variable-rate investment. She has loaned $40 million to her nephew’s construction company. The loan is payable in one year, and the current interest rate is 7.6 percent. Based on data provided by her brokerage house, Mulroney believes interest rates will fall sharply over the next year, with a 70 percent chance of a decline to 5.9 percent and a 30 percent chance of a decline to 4.7 percent.

To protect her cash flows, Mulroney is considering the purchase of a 6.2 percent floor. Mulroney knows a banker who writes such options, but she must come to him with a price in mind.

Next on Mulroney’s list is call options on Merrill Materials stock. She has obtained the followingassumptions through a subscription options service:

The stock trades for $35 per share.

The chance of an upward movement over the next year is 60 percent.

The likely downward movement is 20 percent.

At-the-money calls currently sell for $4.75.

Despite her experience, Mulroney knows she always has more to learn. So she then reviews some technical material on options that she found on the Internet. Mulroney spends the next hour reading up on sensitivity factors related to option pricing.

Later that day, Mulroney meets with Ben Glanda, her financial adviser. He has prepared some investment recommendations and advice for Mulroney.

His first suggestion addresses a series of investments Mulroney was considering. She had proposed buying a stock, buying a European put option on the stock, and writing a call option. Glanda has proposed an alternative investment that will be simpler to make.

Next Glanda attempts to convince Mulroney to start using an alternate method for valuing her options. Glanda suggests using the Black-Scholes-Merton model because of its precision and ability to consider more factors, but Mulroney prefers the binomial model because it requires fewer assumptions.

Mulroney doesn’t like the Black-Scholes Merton model for the following reasons:

It does not work for American options.

It does not consider volatility of interest rates.

It does not reflect the compounding of returns.

It does not work for assets that generate cash flows.

Part 5)

The value of the floor Mulroney seeks is closest to:

A) $236,571.

B) $228,023.

C) $233,494.

D) $231,029.

Tess Mulroney, a veteran options investor, wishes to do some speculating and hedging with options, but isn’t sure the derivatives currently available are attractively priced. Before making any transactions, Mulroney puts her calculator to work to determine a fair price for the options.

First, Mulroney seeks to protect a large variable-rate investment. She has loaned $40 million to her nephew’s construction company. The loan is payable in one year, and the current interest rate is 7.6 percent. Based on data provided by her brokerage house, Mulroney believes interest rates will fall sharply over the next year, with a 70 percent chance of a decline to 5.9 percent and a 30 percent chance of a decline to 4.7 percent.

To protect her cash flows, Mulroney is considering the purchase of a 6.2 percent floor. Mulroney knows a banker who writes such options, but she must come to him with a price in mind.

Next on Mulroney’s list is call options on Merrill Materials stock. She has obtained the followingassumptions through a subscription options service:

The stock trades for $35 per share.

The chance of an upward movement over the next year is 60 percent.

The likely downward movement is 20 percent.

At-the-money calls currently sell for $4.75.

Despite her experience, Mulroney knows she always has more to learn. So she then reviews some technical material on options that she found on the Internet. Mulroney spends the next hour reading up on sensitivity factors related to option pricing.

Later that day, Mulroney meets with Ben Glanda, her financial adviser. He has prepared some investment recommendations and advice for Mulroney.

His first suggestion addresses a series of investments Mulroney was considering. She had proposed buying a stock, buying a European put option on the stock, and writing a call option. Glanda has proposed an alternative investment that will be simpler to make.

Next Glanda attempts to convince Mulroney to start using an alternate method for valuing her options. Glanda suggests using the Black-Scholes-Merton model because of its precision and ability to consider more factors, but Mulroney prefers the binomial model because it requires fewer assumptions.

Mulroney doesn’t like the Black-Scholes Merton model for the following reasons:

It does not work for American options.

It does not consider volatility of interest rates.

It does not reflect the compounding of returns.

It does not work for assets that generate cash flows.

Part 4)

Assuming the risk-free rate is 5.5 percent, call options on Merrill Materials are:

A) $0.2083 undervalued.

B) $0.2263 undervalued.

C) $0.5201 overvalued.

D) $0.0502 overvalued.

Tess Mulroney, a veteran options investor, wishes to do some speculating and hedging with options, but isn’t sure the derivatives currently available are attractively priced. Before making any transactions, Mulroney puts her calculator to work to determine a fair price for the options.

First, Mulroney seeks to protect a large variable-rate investment. She has loaned $40 million to her nephew’s construction company. The loan is payable in one year, and the current interest rate is 7.6 percent. Based on data provided by her brokerage house, Mulroney believes interest rates will fall sharply over the next year, with a 70 percent chance of a decline to 5.9 percent and a 30 percent chance of a decline to 4.7 percent.

To protect her cash flows, Mulroney is considering the purchase of a 6.2 percent floor. Mulroney knows a banker who writes such options, but she must come to him with a price in mind.

Next on Mulroney’s list is call options on Merrill Materials stock. She has obtained the followingassumptions through a subscription options service:

The stock trades for $35 per share.

The chance of an upward movement over the next year is 60 percent.

The likely downward movement is 20 percent.

At-the-money calls currently sell for $4.75.

Despite her experience, Mulroney knows she always has more to learn. So she then reviews some technical material on options that she found on the Internet. Mulroney spends the next hour reading up on sensitivity factors related to option pricing.

Later that day, Mulroney meets with Ben Glanda, her financial adviser. He has prepared some investment recommendations and advice for Mulroney.

His first suggestion addresses a series of investments Mulroney was considering. She had proposed buying a stock, buying a European put option on the stock, and writing a call option. Glanda has proposed an alternative investment that will be simpler to make.

Next Glanda attempts to convince Mulroney to start using an alternate method for valuing her options. Glanda suggests using the Black-Scholes-Merton model because of its precision and ability to consider more factors, but Mulroney prefers the binomial model because it requires fewer assumptions.

Mulroney doesn’t like the Black-Scholes Merton model for the following reasons:

It does not work for American options.

It does not consider volatility of interest rates.

It does not reflect the compounding of returns.

It does not work for assets that generate cash flows.

Part 2)

The Black-Scholes-Merton model is designed to solve for:

A) volatility.

B) theta.

C) time to maturity.

D) option returns.