A forward rate agreement is equivalent to the following interest rate options:
A: long a call and a put.
B: long a call and short a put.
C: short a call and long a put.
A: long a call and a put.
B: long a call and short a put.
C: short a call and long a put.
举一反三
- The following profit/loss diagram is for what type of position() A: Long put. B: Long stock, long put (portfolio insurance). C: Long stock, short call (covered call).
- Which of the following can be used to create a long position in a European put option on a stock? A: Buy a call option on the stock and buy the stock B: Buy a call on the stock and short the stock C: Sell a call option on the stock and buy the stock D: Sell a call option on the stock and sell the stock
- Which of the following statements is the most accurate? In general,_____________ A: the monetary approach to the exchange rate is a long run theory. B: the monetary approach to the exchange rate is a short run theory. C: the monetary approach to the exchange rate is both a short and long run theory. D: the monetary approach to the exchange rate neither long run nor short run theory. E: the monetary approach to the exchange rate is considered less practical than the law of one price.
- A currency call is like being ____ in the currency futures. A: Out-of-the-money B: In-the-money C: Long D: Short E: At-the-money
- When you get a wrong number in making a long distance call, you are advised to ______. A: hang up the receiver and call again B: check the number and call again C: tell the operator what has happened D: ask the operator to put you through again