• 2022-06-26
    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.
  • B

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    • 0

      A __________ gives its holder the right to sell an asset for a specified exercise price on or before a specified expiration date. A: call option B: futures contract C: put option D: interest rate swap

    • 1

      A foreign currency option gives the holder the right to a foreign currency whereas a foreign currency option gives the holder the right to an option. A: call, buy, put, sell B: call, sell, put, buy C: put, hold, call, release D: none of the above

    • 2

      . _____ it rain tomorrow, we would have to _______ the picnic. A: Would; put forward B: Should; call off C: Will; give up D: Should; put up

    • 3

      The target inflation rate for inflation targeting is usually(). A: Inflation rate in the medium and long term B: Inflation rate in the short term C: Average inflation rate D: Past inflation rate

    • 4

      Comparing a long position in put option with a short position in call option, we find that ( ). A: both positions have rights but no obligations B: both positions benefit from an increase in the price of the underlying asset C: both positions will lose money if the price of the underlying remains unchanged D: both positions are potential sellers of the underlying asset