1. What is a characteristic of a forward contract? a Traded on an exchange b Negotiated with...
Question:
1. What is a characteristic of a forward contract?
a Traded on an exchange
b Negotiated with a counterparty
c Covers a stream of future payments
d Must be settled daily
2. What is a characteristic of a swap?
a Traded on an exchange
b Only interest rates can be the underlying
c Covers a stream of future payments
d Must be settled daily
3. What is a characteristic of a futures contract?
a Gives the holder the right but not the obligation to buy or sell
b Negotiated with a counterparty
c Covers a stream of future payments
d Must be settled daily
4. What is a characteristic of an option?
a Gives the holder the right but not the obligation to buy or sell
b Negotiated with a counterparty
c Covers a stream of future payments
d Must be settled daily
Step by Step Answer:
Advanced Accounting
ISBN: 978-0134472140
13th edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith