题目 The success of the currency swap markets has been explained by which of the following? 选项 A.Comparative advantage arguments. B.Floating interest rate risk arguments. C.Reduced counterparty [...]
题目 You have entered into a currency swap in which you receive 4% per annum in yen and pay 6% per annum in dollars once a year. The principals in the two currencies are 1000 million yen and [...]
题目 You are given the following information about an interest rate swap: ●2-year term ●Semiannual payment ●Fixed rate = 6% ●Floating rate = LIBOR+50 basis points ●Notional principal USD [...]
题目 Suppose that the term structure of risk-free interest rates is flat in both Japan and the United States. The Japanese interest rate is 2.0% per annum and the U.S. interest rate is 3.0% per [...]
题目 Two of the key risks facing insurance companies are moral hazard and adverse selection. Three of the following examples are illustrations of moral hazard, but one is an example of adverse [...]
题目 Whichof the following problems would most likely be a concern for life insurancecompanies that are worried about differentiating between good risks and badrisks? 选项 A.Adverse selection. [...]
题目 Bennett Bank extends a 5% APR (annual percentage rate) USD 100,000 30-year mortgage requiring monthly payments. If the mortgage is structured so that it requires interest-only payments for the [...]
题目 Assume an investor has a position in a currency swap. He receives euro in exchange for paying yen. What are the conditions for the swap to be in-the-money? I The value of yen falls. II The [...]
题目 The price to yield function of mortgage-backed securities (MBS) exhibits negative convexity because: 选项 A.they are usually purchased at a premium. B.the probability of default is higher [...]
题目 Catastrophe (CAT) bonds are a popular derivative instrument for hedging catastrophic risk. A CAT bond pays a higher-than-normal interest rate and is often issued by a subsidiary of an [...]
