Are forward contracts the most common because they are the most valuable or just the most...
Are forward contracts the most common because they are the most valuable or just the most well-known?
Homework Answers
Forward contracts are the most common because of flexibility involved or customisation allowed and are unregulated by the government and hence provide privacy to the buyer and the seller.
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Are forward contracts the most common because they are the most
valuable or just the most...
Which of the following statements is most accurate?Briefly explain A. Futures contracts could be private transactions. B. Forward contracts marked to market daily are futures contracts. C. A Forward c...
Which of the following statements is most accurate?Briefly explain A. Futures contracts could be private transactions. B. Forward contracts marked to market daily are futures contracts. C. A Forward contract could have the same liquidity as a Futures contracts. D. Futures contracts require that both parties to the transaction have a high degree of creditworthiness.
Question 3 The counterparty risk in forward contracts: means that most MNCs do not participate in the forward mark...
Question 3 The counterparty risk in forward contracts: means that most MNCs do not participate in the forward markets. restricts forward market participants to large firms with good credit ratings. dictates that only financial institutions can participate in the forward markets. the forward markets are very small and facilitate only very small transactions.
Comparing forward and futures contracts, we can say that: a. forward contracts are traded on organized...
Comparing forward and futures contracts, we can say that: a. forward contracts are traded on organized exchanges while futures contracts are traded over-the-counter. b. forward contracts are standardized contracts while futures contracts are usually tailor-made. c. delivery of the underlying asset is usually made in forward contracts and delivery of the underlying asset is seldom made in futures contracts. d. forward contracts are mainly used for speculative purpose while futures contracts are mainly used for hedging purpose
The derivatives markets contain different types of contracts. Forward contracts, futures contracts, options, and swaps are...
The derivatives markets contain different types of contracts. Forward contracts, futures contracts, options, and swaps are some common types of derivatives contracts. True or False: One of the major differences between futures and forward contracts is that forward contracts are revalued and marked-to-market daily, whereas futures contracts are traded on an organized exchange. O False True Which of the following are used to hedge against fluctuating interest rates, stock prices, and exchange rates? Commodity futures Financial futures O Ahmad feels...
Insofar as forward contracts and futures exchange contracts are concerned: Multiple Choice delivery of the underlying...
Insofar as forward contracts and futures exchange contracts are concerned: Multiple Choice delivery of the underlying asset is seldom made with forward contracts, but usually made with futures contracts. None of the options. forward contracts are daily marked to market while futures contracts are settled at maturity. delivery of the underlying asset is seldom made with futures contracts and usually made with forward contracts. futures contracts are customized while forward contracts are standardized.
Common shares: a. Allow shareholders to bind the corporation to contracts because they share in ownership....
Common shares: a. Allow shareholders to bind the corporation to contracts because they share in ownership. b. Represent residual equity in a corporation. c. Make shareholders liable for acts of the corporation because they share in ownership. d. Are usually redeemable. e. Always represent total contributed capital.
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 ar...
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...
What are the differences between Forward contract, Futures contracts, and Options contracts in reducing or eliminating...
What are the differences between Forward contract, Futures contracts, and Options contracts in reducing or eliminating foreign exchange risks? What are the advantages and disadvantages of each one?
an MNC could the currency forward. Forward contracts can be used to eliminate transaction exposure. For...
an MNC could the currency forward. Forward contracts can be used to eliminate transaction exposure. For example, to hedge a a. [Receivable; sell] and [Payable; sell] O b. Receivable; sell O c. Payable; sell d. Receivable; buy e. [Receivable; buy] and [Payable; sell] Hide Feedback Incorrect
What are speculative forward exchange contracts? Multiple Choice Gambling on the direction of change in exchange...
What are speculative forward exchange contracts? Multiple Choice Gambling on the direction of change in exchange rates. 0 All of the items describe a speculative forward exchange contract 0 Hopefully used to make a profit for the company 0 Contracts not led to other song
The derivatives markets contain different types of contracts. Forward contracts, futures contracts, options, and swaps are some common types of derivatives contracts. True or False: One of the major differences between futures and forward contracts is that forward contracts are revalued and marked-to-market daily, whereas futures contracts are traded on an organized exchange. O False True Which of the following are used to hedge against fluctuating interest rates, stock prices, and exchange rates? Commodity futures Financial futures O Ahmad feels...
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...
an MNC could the currency forward. Forward contracts can be used to eliminate transaction exposure. For example, to hedge a a. [Receivable; sell] and [Payable; sell] O b. Receivable; sell O c. Payable; sell d. Receivable; buy e. [Receivable; buy] and [Payable; sell] Hide Feedback Incorrect
What are speculative forward exchange contracts? Multiple Choice Gambling on the direction of change in exchange rates. 0 All of the items describe a speculative forward exchange contract 0 Hopefully used to make a profit for the company 0 Contracts not led to other song
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