Which of the following is an example of a "future"?
A) Right to buy 100 shares of CIBC over the next 5 years.
B) Commitment to buy 100 barrels of oil next month at $125/barrel.
C) Commitment to buy $100,000 US dollars in 120 days at US$=1.10.
D) Pay interest at prime +3% in exchange for receiving interest at 5%.
Correct Answer:
Verified
Q1: What is a "future"?
A)A contract in which
Q2: What is a "forward"?
A)A contract in which
Q6: Which of the following is an example
Q10: Which of the following is correct regarding
Q12: What is a "swap"?
A)A contract in which
Q12: Indicate whether the following statements are true
Q15: What is hedging?
Q19: What is a "put" option?
A)A contract that
Q20: What is a derivative and what are
Q40: Contrast options with warrants.
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents