Question 1

The option buyer who expects a stock price to decline will purchase

Accepted Answer

A)  a call. 
B)  a convertible bond. 
C)  a warrant. 
D)  a put. 
A)  a call. 
B)  a convertible bond. 
C)  a warrant. 
D)  a put.

Question 2

In a currency swap, the counterparties may exchange fixed payments in one currency for fixed payments in another currency, floating payments in one currency for floating payments in another, or fixed payments for floating payments.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following statements about put and call options is false?

Accepted Answer

A)  They are a form of deferred equity financing by the firm. 
B)  They are traded on organized exchanges. 
C)  They provide the buyer with an opportunity to earn larger returns than simply buying or selling common stock. 
D)  They can be used to lock in a gain or prevent a loss on a stock holding. 
A)  They are a form of deferred equity financing by the firm. 
B)  They are traded on organized exchanges. 
C)  They provide the buyer with an opportunity to earn larger returns than simply buying or selling common stock. 
D)  They can be used to lock in a gain or prevent a loss on a stock holding.

The option buyer who expects a stock price to decline will purchase

In a currency swap, the counterparties may exchange fixed payments in one currency for fixed payments in another currency, floating payments in one currency for floating payments in another, or fixed payments for floating payments.

Which of the following statements about put and call options is false?

Overview of Corporate Finance

Financial Statements, Cash Flows, and Taxes

Financial Statement Analysis

Financial Planning and Forecasting

Financial Markets, Institutions, and Securities

Time Value of Money

Risk and Return

Valuation of Financial Securities

The Cost of Capital

Leverage and Capital Structure

Dividend Policy

Capital Budgeting: Principles and Techniques

Dealing With Project Risk and Other Topics in Capital Budgeting

Working Capital and Management of Current Assets

Management of Current Liabilities

Lease Financing: Concepts and Techniques

Mergers and Acquisitions, and Business Failure

International Corporate Finance

Filters

Exam 17: Corporate Securities, Derivatives, and Swaps

The option buyer who expects a stock price to decline will purchase

In a currency swap, the counterparties may exchange fixed payments in one currency for fixed payments in another currency, floating payments in one currency for floating payments in another, or fixed payments for floating payments.

Which of the following statements about put and call options is false?

Overview of Corporate Finance

Financial Statements, Cash Flows, and Taxes

Financial Statement Analysis

Financial Planning and Forecasting

Financial Markets, Institutions, and Securities

Time Value of Money

Risk and Return

Valuation of Financial Securities

The Cost of Capital

Leverage and Capital Structure

Dividend Policy

Capital Budgeting: Principles and Techniques

Dealing With Project Risk and Other Topics in Capital Budgeting

Working Capital and Management of Current Assets

Management of Current Liabilities

Lease Financing: Concepts and Techniques

Mergers and Acquisitions, and Business Failure

International Corporate Finance

Filters