1 question, I rate, help! What types of derivative gives the owner the right to buy...
1 question, I rate, help!
What types of derivative gives the owner the right to buy a bond futures contract at the exercise price within a specific period of time?
Homework Answers
The answer is Call option
Call options are financial contracts that give the option holder the right to purchase a stock, bond, commodity or other asset or instrument at a specified price within a specified period of time, but not the obligation. The underlying asset is called the stock, debt, or commodity. A call buyer gains when price increases for the underlying asset.
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1 question, I rate, help!
What types of derivative gives the owner the right to buy...
A derivative instrument that gives the holder the right but not the obligation to buy the...
A derivative instrument that gives the holder the right but not the obligation to buy the underlying asset at a specified price before or on a specified date is called a/an_______ Call option.Forward. Swap Put option Commodity futures.
1.00000 ? is a contract that gives its owner the right to sell a fixed number...
1.00000 ? is a contract that gives its owner the right to sell a fixed number of shares of a specified common stock at a fixed price at any time before a given date e futures contract forward contract call option e put option
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...
Which of the following desc The owner (buyer has the right asset) at a specific price....
Which of the following desc The owner (buyer has the right asset) at a specific price. The owner has the right but no cific price. e following describes a futures contract? a) nas the right (but not the obligation) to buy a stock Cite ornat a spesern The owner has the obligation to buy an asset at a spec e owner has the obligation to sell an asset at a specific price. Which stock in the Dow Jones Industrials has...
A call option gives its owner the _____ a security at the strike price within the...
A call option gives its owner the _____ a security at the strike price within the option period. 1. right, but not the obligation, to sell 2. obligation to buy 3. right to borrow 4. right, but not the obligation, to buy 5. obligation to sell
QUESTION 1 a) What is a derivative security? b) What are the differences among a spot...
QUESTION 1 a) What is a derivative security? b) What are the differences among a spot contract, a forward contract, and a futures contract? c) What is an option? How does an option differ from a forward or futures contract? What is the difference between a call option and put option? d) What is a swap? What is the difference between an interest rate swap and a currency swap? e) Which party is the swap buyer and which is the...
(4) The notional amount of a derivative instrument is a. related to the number of units...
(4) The notional amount of a derivative instrument is a. related to the number of units specified in the derivative and the price that relates to the asset or liability underlying the derivative. b. the change in the price or rate that relates to the asset or liability underlying the derivative. c. the price or rate that relates to the asset or liability underlying the derivative. d. the number of units that is specified in the derivative instrument. (5) Forward...
Lia bilities Duration 7 years $120 Duration 5 years $108 Average interest rate 6.00% $12 Al What is the bank's duration Ga 1 What is the bank's interest rate risk exposure? Why? (Hint: this i...
Lia bilities Duration 7 years $120 Duration 5 years $108 Average interest rate 6.00% $12 Al What is the bank's duration Ga 1 What is the bank's interest rate risk exposure? Why? (Hint: this is a qualitative question: exposure if interest rate increase or decrease? Justify your answer C) How can the bank use futures ajd forward contracts to put on a macro-hedge Hint: this is a qualitative question) what is the impact on the bank's equity if the interest...
Lia bilities Duration 7 years $120 Duration 5 years $108 Average interest rate 6.00% $12 Al What is the bank's duration Ga 1 What is the bank's interest rate risk exposure? Why? (Hint: this i...
Lia bilities Duration 7 years $120 Duration 5 years $108 Average interest rate 6.00% $12 Al What is the bank's duration Ga 1 What is the bank's interest rate risk exposure? Why? (Hint: this is a qualitative question: exposure if interest rate increase or decrease? Justify your answer C) How can the bank use futures ajd forward contracts to put on a macro-hedge Hint: this is a qualitative question) what is the impact on the bank's equity if the interest...
On day 1 an investor entered into a futures contract to buy £62,500 at $1.45/£1. The...
On day 1 an investor entered into a futures contract to buy £62,500 at $1.45/£1. The initial performance bond was 2 percent of the USD contract value. The maintenance performance bond was 90 percent of the initial performance bond. Below what settle price will the investor receive a margin call? Multiple Choice $1.4239/£1 None of the options. $1.4210/£1 $1.4471/£1 $1.4720/£1
A derivative instrument that gives the holder the right but not the obligation to buy the underlying asset at a specified price before or on a specified date is called a/an_______ Call option.Forward. Swap Put option Commodity futures.
1.00000 ? is a contract that gives its owner the right to sell a fixed number of shares of a specified common stock at a fixed price at any time before a given date e futures contract forward contract call option e put option
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...
Which of the following desc The owner (buyer has the right asset) at a specific price. The owner has the right but no cific price. e following describes a futures contract? a) nas the right (but not the obligation) to buy a stock Cite ornat a spesern The owner has the obligation to buy an asset at a spec e owner has the obligation to sell an asset at a specific price. Which stock in the Dow Jones Industrials has...
QUESTION 1 a) What is a derivative security? b) What are the differences among a spot contract, a forward contract, and a futures contract? c) What is an option? How does an option differ from a forward or futures contract? What is the difference between a call option and put option? d) What is a swap? What is the difference between an interest rate swap and a currency swap? e) Which party is the swap buyer and which is the...
(4) The notional amount of a derivative instrument is a. related to the number of units specified in the derivative and the price that relates to the asset or liability underlying the derivative. b. the change in the price or rate that relates to the asset or liability underlying the derivative. c. the price or rate that relates to the asset or liability underlying the derivative. d. the number of units that is specified in the derivative instrument. (5) Forward...
Lia bilities Duration 7 years $120 Duration 5 years $108 Average interest rate 6.00% $12 Al What is the bank's duration Ga 1 What is the bank's interest rate risk exposure? Why? (Hint: this is a qualitative question: exposure if interest rate increase or decrease? Justify your answer C) How can the bank use futures ajd forward contracts to put on a macro-hedge Hint: this is a qualitative question) what is the impact on the bank's equity if the interest...
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