Quiz Ch 24 – T/F Futures Contracts: Specialized Forward Contracts
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
True or false: Futures contracts are specialized versions of forward contracts.
True or false: Futures contracts are specialized versions of forward contracts.
True or false: Using real estate futures contracts is a strategy for investors to hedge against changes in house prices.
True or false: Hedging could enhance a company’s debt capacity.
True or false: When a company hedges, it essentially transfers the risk to another individual.
True or false: In a standard interest rate swap, two parties exchange fixed payments for payments linked to the interest rate level.
True or false: The question of whether companies should always leave investors to hedge for themselves is subjective.
True or false: Margin is required from both the seller and buyer in a futures contract.
True or false: Mark-to-market applies to forward contracts.
True or false: Mexico acquired call options to secure the price of its oil, establishing a base floor for its revenue stream.
True or false: To safeguard against declining oil prices, an oil producer would sell, rather than buy, crude oil futures.