FIN 4486

Futures and options are similar in all of the following ways except _______________. Student Response Correct Answer Feedback A. expiration dates are standardized B. deliverable quantities are standardized C. the owner is not obligated to proceed with the transaction D. All of the above are similarities between futures and options Score: 0/1 Comments: review powerpoint presentation 2. Very few futures contracts are terminated in delivery of the underlying commodity or security. S...

Question 1 10 out of 10 points An investor receives $1084.0 in 2.0 weeks for an initial investment of $1035.0. What is annual percentage return with continuous compounding? Answer Selected Answer: c. 120.27 Correct Answer: c. 120.27  Question 2 10 out of 10 points Mogul oil company will sell 7000 barrels of oil in 3 months. Suppose Mogul hedges the

Introducing the stock market Why do companies do IPOs? - IPOs incentivize entrepreneurs to innovate as IPOs provide a way for entrepreneurs to monetize their work. Question 1: - An IPO crystallizes the value of the manager – owners’ stake Question 2: - Goldman Sachs Question 3: - “The Sum of the Share Prices of All 30 Dow Jones Members Will Triple” Question 4: - The S&P 500 Index The nature of equities What is the prime reason that Jenny’s discretionary income is more vola...

How accurately do GDP statistics portray the economy and why? - Inaccurately because the scope of GDP measurements Consider the formula GDP = C + I + G (x – m) - It went down Here is the most important economic data for Australia and Sweden - Sweden performance better In the United States, why is there a strong - Consumer spending accounts for two-thirds of the US Question 1 - The country has deflation. The bottom line is nominal growth and the top line is real growth Question 2 - G...

Question 1 0 out of 4 points Company A can borrow fixed at 7.9 percent and floating at LIBOR percent. Company B can borrow fixed at 8.9 percent and floating at LIBOR+0.28571 percent. A financial intermediary charges a fee of 0.1 percent. Company A wishes to borrow floating and company B wishes to borrow fixed. Assume the gain is evenly split between the two parties and floating rate legs are LIBOR. Design the swap. What is the company A’s fixed rate leg and company B’s fixed rate leg,...