Question
In: Finance
Derivatives that are traded in an exchange market are standardized according to a rule set by...
Derivatives that are traded in an exchange market are standardized according to a rule set by a central authority.
True/False
Solutions
Expert Solution
True
An exchange traded derivatives are standardise financial contract, it is guaranteed by clearing houses, such as occ, cftc. this guarante reduce the risk of product trading.
where central authority( national bank) regulates the interest rate and currency derivatives market. and other regulators authorities ensure smooth functioning of market.
jeff jeffy answered 2 years agoRelated Solutions
Use the product rule or quotient rule, as appropriate, to compute each of the following derivatives:...
Use the product rule or quotient rule, as appropriate, to
compute each of the following derivatives:
A. sin^2(x)
B. sin(x) cos(x)
C. sec(x) tan(x)
D. x^2ln(x)
E. xtan(x)
According to a survey by TD Ameritrade, one out of four investors has exchange-traded funds in...
According to a survey by TD Ameritrade, one out of four
investors has exchange-traded funds in their portfolios (USA
Today, January 11, 2007). Consider a sample of 40
investors.
Compute the probability of exactly 7 investors having
exchange-traded funds in their portfolio.
Compute the probability that at least 5 of the investors have
exchange-traded funds in their portfolio.
Compute the probability that at most 4 of the investors have
exchange-traded funds in their portfolio.
Find the mean and standard deviation....
A futures market is a central financial exchange where people can trade standardized futures contracts. A...
A futures market is a central financial exchange where people
can trade standardized futures contracts. A futures exchange
provides physical or electronic trading venues, which can be
organized as non-profit member-owned organizations or for-profit
organizations. Futures exchanges can also be integrated under other
types of exchanges, such as stock markets, options markets and bond
markets. Futures contracts are sometimes used by corporations and
investors as a hedging strategy. Hedging refers to a range of
investment strategies that are meant to...
A futures market is a central financial exchange where people can trade standardized futures contracts. A...
A futures market is a central financial exchange where people
can trade standardized futures contracts. A futures exchange
provides physical or electronic trading venues, which can be
organized as non-profit member-owned organizations or for-profit
organizations. Futures exchanges can also be integrated under other
types of exchanges, such as stock markets, options markets and bond
markets.
Futures contracts are sometimes used by corporations and
investors as a hedging strategy. Hedging refers to a range of
investment strategies that are meant to...
A futures market is a central financial exchange where people can trade standardized futures contracts. A...
A futures market is a central financial exchange where people
can trade standardized futures contracts. A futures exchange
provides physical or electronic trading venues, which can be
organized as non-profit member-owned organizations or for-profit
organizations. Futures exchanges can also be integrated under other
types of exchanges, such as stock markets, options markets and bond
markets.
Futures contracts are sometimes used by corporations and
investors as a hedging strategy. Hedging refers to a range of
investment strategies that are meant to...
A futures market is a central financial exchange where people can trade standardized futures contracts. A...
A futures market is a central financial exchange where people
can trade standardized futures contracts. A futures exchange
provides physical or electronic trading venues, which can be
organized as non-profit member-owned organizations or for-profit
organizations. Futures exchanges can also be integrated under other
types of exchanges, such as stock markets, options markets and bond
markets. Futures contracts are sometimes used by corporations and
investors as a hedging strategy. Hedging refers to a range of
investment strategies that are meant to...
A futures market is a central financial exchange where people can trade standardized futures contracts. A...
A futures market is a central financial exchange where people
can trade standardized futures contracts. A futures exchange
provides physical or electronic trading venues, which can be
organized as non-profit member-owned organizations or for-profit
organizations. Futures exchanges can also be integrated under other
types of exchanges, such as stock markets, options markets and bond
markets. Futures contracts are sometimes used by corporations and
investors as a hedging strategy. Hedging refers to a range of
investment strategies that are meant to...
PART A: U.S. and Canada's currencies pesos and dollar, being traded in the foreign exchange market....
PART A:
U.S. and Canada's currencies pesos and dollar, being traded in
the foreign exchange market. If nothing changes, explain how value
of pesos may change (appreciate or depreciate) due to the following
two events.
a) Interest rates are higher in Canada than
they are in the U.S.
b) GDP grows faster in the U.S. than they do in
Canada.
PART B:
Bank Z has a total deposit of $2,600 million. Required reserve
ration is set at 4%.
a. How...
3. Use the quotient rule for differentiation to find derivatives in each of the following: (a)...
3. Use the quotient rule for differentiation to find derivatives
in each of the following:
(a) ?(?)=?2−?+1/?−1 (b) ?(?)=√?+2/2√? (c)
?(?)=?3+?2/?3−1
True or false with justification: 1. Financial Derivatives can be traded in the future markets. They...
True or false with justification:
1. Financial Derivatives can be traded in
the future markets. They include futures, options and
bills.
2. Government bonds are issued by governments to finance the
budget deficit, they are short term and less risky than stocks and
corporate bonds.
3. The agency problem results from a manager’s concerns
about corporate goals and can only be solved through stock
options
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