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To buy a fixed for floating Interest Rate Swap on a fixed income asset you must own the asset.
Question 4 options:
| True | |
| False |
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- Question 2 Which type of financial derivative is used to protect against adverse price movements in an asset? A) Call option B) Put option C) Futures contract D) Swap contractInterest can be defined as the price of credit and also as a rate of return Question 21 options:True FalseTotal project value ($) Debt Option Loan-to-value Rate (%) Interest only period (years) Amortization (years) $35,000,000.00 A 65% 3.25% 3 20 B 70% 3.25% 3 30 C 70% 3.00% 0 30 D 50% 4.25% 0 30
- A credit default swap (CDS) is a privately negotiated contract which you can use to: Question 2 options: hedge prepayment risk on a pool of mortgages. hedge default risk on fixed income assets. hedge interest rate risk on fixed income assets. hedge exchange rate risk on euroyen deposits.which one is correct please confirm? Q4: Options are contracts that give the purchasers the option to buy or sell an underlying asset the obligation to buy or sell an underlying asset. the right to hold an underlying asset. the right to switch payment streams.Required Correct Option 1- The amount which borrower has to pay to lender for taking and using his amount on total amount accumulated is called as _____________. a. Real rate of interestb. Nominal interest ratec. Nominal risk free interest rated. Compound interest
- Identify which of the following instrumets are used for hedging receivables Forex Borrowing Choose..V Choose... No Yes Choose... Spot Contract Futures Contract, Option contract Choose... Forward Contract Choose... Forex Lending Choose...A Collateralized Mortgage Obligation (CMO) allows you to create some AAA rated tranches from a pool of subprime mortgages by ordering the tranches by payback precedence. Question 36 options: True FalseA swap contract Select one: A. relates to the trading of an asset owned by one company for another owned by a second company. B. is an arrangement between two or more parties to exchange future cash flows. C. can be used to increase or decrease the ratio of fixed and variable interest costs in its cost structure. D. Both B and C are true.
- A swap: Group of answer choices B. Gives the holder the right to see the underlying bond. A. Allows the buyer to purchase the underlying instrument. C. Is an OTC agreement to exchange the cash flows of two different securities. D. Not effective at managing interest rate risks.Question: Market Value 1. What kinds of liabilities are there in the market to be purchased?explain whether true or false : The interest rate parity does hold in realty