A swap differs from a futures because a swap only exchanges for 1 future payment.
-- true or false?
Answer: False
A Swap involves a series of payments and it does not only exchange
for one future payment.
A swap differs from a futures because a swap only exchanges for 1 future payment. --...
30. Which of the following is true? A. Both forward and futures contracts are traded on exchanges Porward contracts are traded on exchanges, but futures contracts are not. Futures contracts are traded on exchanges, but forward contracts are not. D: Neither futures contracts nor forward contracts are traded on exchanges. 2. Long answer questions (25 points) Note: write down the necessary st eps; round the answer to two decimal points, e g . 0.45%. (1) The following table gives the...
Company A enters into an interest rate swap contract with semi-annual exchanges in cash that lasts for a year. The notional amount of the swap is $1M and the swap rate is set at 5%. If the realized 6M LIBOR rates at today, 6 months from now, and 1 year from now are 3.8%, 4.6%, and 6%, respectively, what is the cash flow to the firm A receiving fixed side of the swap at today, 6 months from now, and...
Question 1 10 pts A liability is a probable future payment of assets or services that a company is presently obligated to make as a result of past transactions or events. True False
Most governments budget (appropriate) resources for principal and interest only for the period in which a payment is due not for future payments. TRUE FALSE
1(a.) (TRUE or FALSE?) We mark it up the value of a future promised or expected cash payment because it is worth more if the same amount of money is to be received later rather than now. 1(b). (TRUE or FALSE?) Money expected or promised in the future is worth less than the same amount of money in hand today. 1(c). (TRUE or FALSE?) The payments of an amortized loan reflect a decreasing amount going toward principal and an increasing...
Profit or Loss from a futures risk management strategy: I. Is the difference between the current price of the futures contract and its future price; II. Is used to offset the profit or loss of the previous market transaction; III. Is highly undesirable because does not allow to hedge the spot price of an underlying asset. Select one: O a. Only I is correct O b. Only Il is correct o c. Only III is correct O d. Only I...
Security exchanges, such as the New York Stock Exchange, require additional reporting and disclosure from the companies they list. True or False
make to each otner H Princeton Bank and the XYZ Manufacturing Corp. enter into the following five-year 8 swap with a notional amount of $100 million and the following terms: every year for the next five years, Princeton Bank agrees to pay XYZ Manufacturing 6 % per year and receive from XYZ Manufacturing LIBOR. What type of swap is it? b. In the first year payments are to be exchanged, suppose that LIBOR is 3%.What is the amount of the...
Elasticity differs from the slope as a measure of responsiveness to changes in prices because: elasticity changes depending on the currency prices are measured in, but this does not affect the slope. percentage changes do not depend on the units of measurement, whereas the slope does. elasticity is only useful for describing demand, but the slope is useful for describing demand and supply. the slope is always negative, while elasticity is not.
unearned revenue arises because the business receives goods or services before payment has been made True or false retirement compensation is a benefit because the employer sets aside money for the employees future retirement True or false gross pay is the total amount of salary,wages,commissions,and bonuses earned by an employee during a pay period,after taxes or any other deductions True or false the old age,survivors,and disability insurance component of FICA tax is imposed on the entire amount of an individual...