Free Sample Question
China Stock Markets
Which of the following statements are CORRECT regarding mainland China stock markets?A shares traded on the Shanghai Stock Exchange are purchased by local Chinese investors and settled in RMBB shares traded on the Shanghai Stock Exchange are purchased by foreign investors and settled in RMBAll shares traded on the Shenzhen Stock Exchange are settled in HKDB shares traded on the Shenzhen Stock Exchange are settled in HKD
A
I and II only
B
I and IV only
C
I, II, III and IV
D
III and IV only
Exchange Participants
Which of the following is INCORRECT regarding Stock Exchange Participants (EPs)?
A
EPs must pay a variety of charges to the Stock Exchange of Hong Kong and the Hong Kong Securities Clearing Company
B
EPs must hold shares in Hong Kong Exchange and Clearing Limited
C
Only EPs can access the Orion Trading Platform
D
An EP must be incorporated
Broker Responsibilities
Jonny Wu is a Hong Kong securities broker.  Which ONE of the following is NOT one of his broker responsibilities?
A
He must enter into a client agreement before providing any services to a client
B
He must establish a client’s identity and retain a copy of the identity document
C
If client securities are to be pledged, he must obtain written authority from the client beforehand
D
He must contribute to the Investor Compensation Fund
Option Break Even
What is the break-even stock price of a long call position with a strike price of HK$50 and an option premium of HK$5?
A
HK$45
B
HK$50
C
HK$55
D
HK$60
Clearing Statements
Clearing Participants receive a Provisional Clearing Statement on the trade day for reconciliation through their CCASS terminals.  When do they receive the Final Clearing Statement?
A
T+1
B
T+2
C
T+3
D
T+4
Dividend Growth Model
Booker Industries has just paid a dividend of $11.  If the dividend is expected to grow at 3% per year for the foreseeable future, and investors require a 15% rate of return, what is the stock’s expected price?
A
$75.53
B
$91.66
C
$94.42
D
$103.88