Which of the following is an example of a "forward"?
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
Q2: What is a "forward"?
A)A contract in which
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Q12: What is a "swap"?
A)A contract in which
Q15: What is an option?
A)A contract that gives
Q19: Which of the following is correct about
Q19: What is a "put" option?
A)A contract that
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Q40: Contrast options with warrants.
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