Question: please solve it fast Question 5 Insurance involves transferring the risk of loss to an entity that pools the risk of loss and provides payment
please solve it fast



Question 5 Insurance involves transferring the risk of loss to an entity that pools the risk of loss and provides payment if a loss occurs. Life insurance offices: a) Invest mainly in long term securities b) Sell motor vehicle and home and contents insurance policies c) Typically invest in short term highly marketable securities d) Borrow in both domestic and international capital markets to make loans Question 3 A rights issue differs from a bonus issue of shares in that: a) after a bonus issue there is a greater number of shares in existence, unlike rights. b) shares that are cum-bonus are renounceable. c) the purpose of a bonus issue for a company is not to raise more funding. d) only listed companies have rights issues. Question 3 Which of the following statement describes an option contract and the major distinction between a call and a put option? a a) An option is defined as the right, but not the obligation, to buy or to sell a specified amount of a given stock, commodity, currency, index or deby, at a specified price (the strike price) for a specified period of time. b) A call option contract gives a buyer the right not the obligation to purchase an underlying security at certain price specified in the call option contract. c) A put option contract gives a buyer the right not the obligation to sell an underlying security at certain price specified in the put option contract. d) All of the given answers
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
