Quiz Ch 24 – Counterparty in an Interest Rate Swap
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
What is the term for the company taking the opposite side of the swap in an interest rate swap?
Quiz Ch 24 – Distinguishing Speculators and Hedgers in Futures Contracts
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
How do speculators in futures contracts differ from hedgers?
Quiz Ch 24 – Effect of Euro Depreciation on Forward Contract Price
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
What happens to the price in a forward contract for the delivery of 1 million euros if the euro depreciates during the contract period?
Quiz Ch 24 – Evaluation of Corn Futures Transaction
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
A farmer sells corn futures for March delivery at $7.50 per bushel. In March, the spot price is $7.20 per bushel. Which is accurate?
Quiz Ch 24 – Exchange in Interest Rate Swap: Fixed-Rate Payments
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
What is the common exchange in an interest rate swap for borrowers?
Quiz Ch 24 – Expectations Regarding Futures Prices Near Expiration
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
What is the anticipated behavior of futures prices as the contract approaches its expiration?
Quiz Ch 24 – Function of a Futures Contract Margin Account
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
What is the function of a margin account in a futures contract?
Quiz Ch 24 – Futures Contract on Non-Deliverable Asset
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
Which futures contract pertains to assets that CANNOT be physically delivered?
Quiz Ch 24 – Futures Price at Contract Expiration
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
What is the relationship between the futures price and the spot price at the expiration of a futures contract?