Fin 4486 - Study guides, Class notes & Summaries

Summary BMC Fixed Income test, Complete questions & Answers.

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

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...

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...

Fixed Income The roots of the bond market What do the green bars at the bottom signify? According to the table on the right, which country owns 2.9% of total US debt? What quality of US government bonds causes investors to buy them when market volatility rises? Why is fixed income called fixed income? Question1: Question2: Question3: Question4: Bond Valuation When investors doubt the creditworthiness of a As a general rule, what percentage of debt to GDP will make a government’s bond...

How accurately do GDP statistics portray the economy and why?-Inaccurately because the scope of GDP measurementsConsider the formula GDP = C + I + G (x – m)-It went downHere is the most important economic data for Australia and Sweden-Sweden performance betterIn the United States, why is there a strong-Consumer spending accounts for two-thirds of the USQuestion 1-The country has deflation. The bottom line is nominal growth and the top line is real growthQuestion 2-Green LineQuestion 3-ItalyQue...