Similar to a stock option, a warrant is a contract between two parties that gives one the right to buy the other's stock at a set price, over a specified period of time. Once the warrant is exercised by the holder. he/she get shares of stock in the issuing party's A. time deposit B. saving deposit C. company D. country Forwards can be A. only shorting or settled in cash. B. only longing C. delivered D. not exercised

Similar to a stock option, a warrant is a contract between two parties that gives one the right to buy the other's stock at a set price, over a specified period of time. Once the warrant is exercised by the holder. he/she get shares of stock in the issuing party's A. time deposit B. saving deposit C. company D. country Forwards can be A. only shorting or settled in cash. B. only longing C. delivered D. not exercised

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 3SEQ

See similar textbooks

Similar questions

1 A long-term contract under which a borrower agrees to make payments of interest and principal on specific dates is called a: Group of answer choices common stock. preferred stock. bond. equity contract.
8. Buy one July 170 put contract. Hold it until the option expires. Determine the profits and display the results in a chart (include profits for the following underlying stock prices: 130,140,150,160,170,180,190). Identify the breakeven stock price at expiration. What is the maximum possible gain and loss on the transaction?
which one is correct please confirm? Q5: Parties who have sold a futures contract and thereby agreed to _____ (deliver) the bonds are said to have taken a ____ position sell; short buy; short sell; long buy; long
1. (7 marks) A stock XYZ is quoted 1015. Two counterparties agree to enter into a forward contract maturing at T = 6 months. Here are the possible values of XYZ, at maturity. XYZ at T=6 months XYZ Forward Long Short 1000 1015 1020 1030 1080 (A) Find the possible values of the payoff for the buyer and for the seller of the forward and sketch a graph of the payoffs. (3.5 marks) (B) We know that spot price at expiration can be duplicated according to Forward + Zero Coupon bond = Spot Price at Maturity. Find the possible values of the zero coupon bond. What can you say about the risk associated with this bond? (3.5 marks)
An asset ( Set that is purchased with the expectation that it will pro or appreciate at s Tuture. Bond sit Investment 2. Hise it in stocke an organization that brings together money from various people and invests ke bonus or omer assets. Hurance ComSION le B. Deposit PSIH Market AAA e liquidity. AV B: 4. It is a form of security that indicates the holder has proportionate ownership in the issuing corporation. A. Bond C. Deposit D. Investment B. Stock 5. An income based on the outstanding principal and current interest rate. A. Active income C. Passive income B. Interest income D. Dividend income 6. It is a fixed-income instrument that signifies a loan made by an investor to a borrower (typically corporate or government). A. Bond B. Stock C. Deposit D. Investment 7. These investments are impractical to invest directly considering storage, transportation, and insurance costs involved. A. Currency C. Commodities D. Investment B. Stock 8. A risk management technique that combines a wide…
14. Which of the following is an example for non-trade receivables? a. Dividends receivable. b. All the options c. Advances to employees d. Insurance claims
which one is correct please confirm? Q9: Parties who have bought a futures contract and thereby agreed to _____ (take delivery of) the bonds are said to have taken a ____ position. sell; short buy; short sell; long buy; long
6. This is a financial security that evidences your right to be paid with interest and principal during specified due dates? a. Bonds b. Preferred shares c. Common shares d. Option to buy bonds e. None of the above
4. Which of the following would be considered a key difference between a forward contract and a futures contract? (a) One clearinghouse is the counterparty to all forward contracts. (b) The owner of the forward contract receives cash flows from the underlying asset between contract origination and delivery. (c) Futures contract is marked to market regularly, while a forward contract is not. (d) Only forward contracts can be set up as cash settlement contracts. 4
Identify which of the following instrumets are used for hedging receivables Forex Borrowing Choose..V Choose... No Yes Choose... Spot Contract Futures Contract, Option contract Choose... Forward Contract Choose... Forex Lending Choose...
8) Most futures contracts are closed by a. Delivery of the underlying asset. b. Placing an offsetting order. c. Exercise of the embodied option. d. Default. e. none of the above. 9) Which of the following is not a forward contract? a. a long-term employment contract at a fixed salary. b. an automobile lease non-cancellable for three years. c. a down payment to rent an apartment. d. a signed contract to buy a house in six months. e. none of the above. 10) In a futures marking-to-market, when the trader receives a margin call, the amount he must deposit is called: a. the initial margin. b. the maintenance margin. c. the variation margin. d. the margin balance. e. none of the above. 11) If the initial margin of a futures contract is $5,000 and the maintenance margin is $3,500, how much must you deposit at the start of the contract? a. $5,000 b. $3,500 c. $8,500 d. $0.000 e. none of the above. 12) If the initial margin is $5,000, the maintenance margin is $2,500 and your margin balance is…
An agreement between two parties to exchange a series of specified periodic cash flows in the future based on some underlying instrument or prices r O option contract. Oswap contract O futures contract. Actvate Windows forward agreement.