题目 A financial institution has entered into a plain vanilla currency swap with one of its customers. The period left on the swap is two years with the institution paying 4.5% on USD120 million [...]
题目 A hedge fund charges 2 plus 20%. Investors want a return after fees of 20%. How much does the hedge fund have to earn, before fees, to provide investors with this return? Assume that the [...]
题目 Which is nearest to the principal component of the first monthly payment on a 30-year fixed rate mortgage (FRM) with an original balance of $140,000 when the interest rate is 3.60%? 选项 [...]
题目 On January 1st, the Smiths bought a house with a 30-year, 6.0% fixed-rate $120,000 mortgage loan; i.e., the 6.0% stated annual rate is payable (compounds) monthly. The monthly payment is [...]
题目 Consider the following plain vanilla swap. Party A pays a fixed rate 8.29% per annum on a semiannual basis (180/360), and receives from Party B LIBOR+30 basis point. The current six-month [...]
题目 Which one of the following statements is incorrect regarding the margining of exchange-traded futures contracts? 选项 A.Day trades and spread transactions require lower margin levels. B.If [...]
题目 A bakery owner has decided to exit the business and sell her forward contracts. The contract calls for the delivery of 100 tons of wheat in five months at a price of $105 per ton. The current [...]
题目 The hedge ratio is the ratio of derivatives to a spot position (or vice versa that achieves an objective such as minimizing or eliminating risk. Suppose that the standard deviation of [...]
题目 With respect to the convexity adjustment applied to a Eurodollar futures contract that has a final settlement at time T, which of the following is true? 选项 A.The forward rate (per FRA) is [...]
题目 A risk analyst at a commodities trading firm is examining the supply and demand conditions for various commodities and is concerned about the volatility of the forward prices for silver in the [...]
