All Courses > ETFs > 100
ETFs 111: Investing in Alternatives with Exchange-Traded Funds

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
Futures-based, long-commodity exchange-traded funds work best as what kind of strategy?
Choose wisely. There is only one correct answer.
Tactical. The other terms refer to currency-oriented ETF strategies.
2.
Inverse exchange-traded funds offer _______.
Choose wisely. There is only one correct answer.
The exact opposite return of a particular index. Thus the name 'inverse.'
3.
Merger arbitrage involves buying stocks that are acquisition targets and _______.
Choose wisely. There is only one correct answer.
Shorting the stocks of the acquiring companies or a broad index of stocks. Merger arbitrage is a type of long-short strategy.
4.
When investing in currencies via exchange-traded funds, a long position in one currency always means a _______ in another currency.
Choose wisely. There is only one correct answer.
Short position. The two positions are used in tandem.
5.
What does a buy-write stock-index strategy do?
Choose wisely. There is only one correct answer.
Sells call options on a stock index. A buy-write or covered-call writing strategy writes or sells call options on a stock index, such that if the call is exercised, it is "covered," and the cash-value of the index can be delivered to the holder of the option. The premium received from writing the calls provides some protection against losses on underlying stock index, but also caps the gains on the index.