Finc 306 - Study guides, Class notes & Summaries

Finance 306 - Exam 1 Questions With 100% Correct Answers

Finc306 Exam 2 Questions With 100% Correct Answers | Latest Version (2024/2025) Expert Verified

Define Derivarive a financial instrument that has a value determined by the value of something else (underlying) Examples of Derivatives Stocks, bonds, commodities, currencies, interest rates Types of Derivatives Forwards, futures, options, swaps Why use derivatives Risk management Speculation Reduce transaction costs Regulatory Arbitrage Difference between Market value and Notional value market value is the sum of the market value of all the claims that could be traded

FINC 306 Exam Questions And Answers (Guaranteed A+) What is a Forward Contract? - Answer∙A forward contract is a binding agreement to buy/sell an underlying asset in the future at a price set today Describe the meaning of a forward price, delivery date and payoff of a forward contract - Answer∙The forward price is the price at which two parties agree today to transact/deliver in the future ∙The delivery date is the time at which the contract is settled ∙The payoff of a forward co...

FINC 306 Final Exam Questions And Answers (Guaranteed A+) Derivative - AnswerA financial instrument that has a value determined by the price of the underlying. An agreement between two parties Underlying assets - Answerthe most common include stocks, bonds, commodities, currencies, interest rates and market indexes Types of Derivatives - AnswerForwards, futures, options, swaps Use of derivatives - Answerrisk management, speculation, reduce transaction costs, regulatory arbitrage Measure...

Finance 306 Exam 2 Questions with 100% Correct Answers | Verified | Latest Update

What is a Forward Contract? ∙A forward contract is a binding agreement to buy/sell an underlying asset in the future at a price set today Describe the meaning of a forward price, delivery date and payoff of a forward contract ∙The forward price is the price at which two parties agree today to transact/deliver in the future ∙The delivery date is the time at which the contract is settled ∙The payoff of a forward contract is the value created by the position at expiration Payoff f...

What Is a Derivative?A financial instrument that has a value determined by the price of something else (i.e., the underlying). NovationNovation is the substitution of one counterparty for another. Common underlying assetsThe most common underlying assets include stocks, bonds, commodities, currencies, interest rates and market indexes. What are the four stages of derivatives history presented in lectures?1. In ancient Greece, around the 6th century B.C., there were the equivalent of der...

DerivativeA financial instrument that has a value determined by the price of the underlying. An agreement between two parties Underlying assetsthe most common include stocks, bonds, commodities, currencies, interest rates and market indexes Types of DerivativesForwards, futures, options, swaps Use of derivativesrisk management, speculation, reduce transaction costs, regulatory arbitrage Measures of market size1. Market value: # units of claims x price of claims 2. Notional value: #uni...

Which of the following is true about the field of economics? Economics as a field of study was introduced during the Industrial Revolution and has not changed over time Economics can correctly predict when a recession is coming and how long it will last Economics is commonly broken into Labor Economics and Consumer Economics Economics is a social science that intersects with other fields of study CONCEPT What is Economics? 2 A real estate agency’s policy is to start all sales commissi...