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1explain how someone currently involved in an interest rate swap might logically use a swaption along with it2two firms
multiple choice1immunization strategies deal mostly with acredit riskbmarket riskcconvenience riskdinterest rate
multiple choice1suppose a us investor buys shares on a foreign stock exchange when the shares are eventually sold the
truefalse1foreign currency futures contracts regardless of the associated currency are all based on 100000 units of the
1you are a buyer for a major department store chain and have just entered into a contract with a german supplier to
truefalse1if short-term interest rates decline the value of a t-bond futures contract will necessarily increase2a
multiple choice1a trader going long treasury bond futures expectsathe yield curve to become more downward slopingbthe
multiple choice1if a stockrsquos variance of return increases and everything else remains constant the price of a call
multiple choice1which of the following is most equivalent to writing a straddleabuy stock write two callsbbuy stock buy
multiple choice1if a call option with a striking price of 50 is purchased for 3 frac12 the maximum loss is a3 frac12b46
multiple choice1which of the following strategies most closely resembles the outright purchase of stockabuy a call
1a 5 million stock portfolio has a beta of 110 at a time when the oex index stands at 44000 you write 10 jun oex 450
1 nbsplisted below are four basic option positions nbsptwo of these are generally bearish and two are bullish nbspput
truefalse1 nbspa call option gives you the right to buy2 nbspa put option is a promise to sell3 nbspoptions can be
multiple choice1 option striking prices are normally ata 2 intervalsb 5 intervalsc 7 intervalsd 10 intervals2 an option
multiple choice1 a person who buys an option may do any of the following excepta extend itb exercise itc sell itd allow
multiple choice1 an observation whose value changes isa a random variableb discretec continuousd a statistic2 a
multiple choice1 the orange county california bankruptcy was largely due to the treasurerrsquos use ofa derivativesb
bob technologies is considering whether or not to refund a 70 million 10 coupon 30-year bond issue that was sold 5
calvert ltd is interested in acquiring jones industries jones has 2 million shares outstanding and a target capital
john hopkins the president of the cowbells ltd is initiating planning for the companys operations for next year and
5 the common stock of company xyz is currently trading at a price of 42 both a put and a call option are available
you strongly believe that the price of breener inc stock will rise substantially from its current level of 137 and you
clark faucet company background by 1999 clark faucet company had grown into the third largest supplier of faucets for
multiple choice1the swap fixed rate is also called the swap apricebvaluectenordnotional value2tenor refers toathe