11. Answer the following questions based on text b.

1. What can you say about an option?

2. What is the reason for issuing the rights?

3. What is the difference between a warrant and a right?

4. What types of financial futures do you know?

12. Make up sentences of your own using the following expressions from text b.

A specified price and specified period of time, to speculate on the expectation, to become extremely popular, to buy at an attractive price, to issue the right, to raise additional capital, to be traded in vast quantities, financial futures, to become the center of trading, to be used for protective purpose, highly speculative, professionals and other expert investors.

13. Say what is true and what is false. Correct the false sentences.

1. An option is a piece of paper that gives you the right to buy or sell a given security at a specified price for a specified period of time.

2. The futures can be used only for speculations.

3. Food stuffs and industrial goods are traded on the commodity markets in vast quantities.

4. An option is a contract that gives you the right to buy a given security at a specified price for an unlimited period of time.

5. Several trading techniques used by expert investors are built around options.

6. The holder can use the right himself only.

7. Warrants are not negotiable.

8. Like options, the futures can be used for protective purposes as well as for speculation.

9. Interest rate futures are based on the prices of U.S. Treasury bonds, notes, and bills.

14. Complete the following sentences in English:

1. A "call" is … ; a "put" is … .

2. In recent years a new type of option has become extremely popular: …

3. When a corporation wants to sell new securities or …

4. When rights are issued, they …

5. The commodity markets, where …

15. Match the following words with the correct definition from the list.

Option writer, dividend payable, futures contract, optional dividend, subscrip­tion warrant, par value, convertible bond

1. An agreement to buy or sell a specific amount of a commodity or financial instrument at a particular price on a stipulated future date.

2. A dividend that can be paid either in cash or in stock. The shareholder entitled to the dividend makes the choice.

3. The value of a security which is worth the same cash amount it was issued for or at which it will be redeemed at maturity.

4. A person or financial institution that sells put or call options.

1. Corporate securities that are exchangeable for a set number of another form at a stated price.

5. Cash amount of dividends that are to be paid as reported in financial statements.

6. The type of security, usually issued together with a bond or preferred stock, that entitles the holder to buy a proportionate amount of common stock at a specified price, usually higher than the market price at the time of assurance, for a period of years or to perpetuity.

16. Look through these texts and then fill the spaces with the words below. Translate the text into Russian.

Free from tax, reduced income tax rates, pay dividends, are taxable

When a corporation ... (1) to its shareholders out of earnings, those dividends ... (2) as ordinary income, at full rates. The 1986 law did away with an "exclusion" that previously made the first $100 of dividends completely ... (3). But the law also ... (4) across the board, so that most investors now pay lower rates of federal income tax on their dividends than they did before.