Fin 4486 Study guides, Class notes & Summaries

Futures and options are similar in all of the following ways except _______________. Student Response Correct Answer Feedback A. expiration dates are standardized B. deliverable quantities are standardized C. the owner is not obligated to proceed with the transaction D. All of the above are similarities between futures and options Score: 0/1 Comments: review powerpoint presentation 2. Very few futures contracts are terminated in delivery of the underlying commodity or security. S...

Equity Introducing the stock market Why do companies do IPOs? Question 1: Question 2: Question 3: Question 4: The nature of equities What is the prime reason that Jenny’s discretionary income is more volatile than her salary? - Her mortgage payments and necessities are fixed A wedding planning company has a high fixed-cost base and a lot of debt. Who would you rather be? The S&P 500 stood at 1848 at the end of 2013. The brown line stood at 2639 at the end of 2013 Question 1: Questio...

Question 1 10 out of 10 points An investor receives $1084.0 in 2.0 weeks for an initial investment of $1035.0. What is annual percentage return with continuous compounding? Answer Selected Answer: c. 120.27 Correct Answer: c. 120.27  Question 2 10 out of 10 points Mogul oil company will sell 7000 barrels of oil in 3 months. Suppose Mogul hedges the

Fixed Income The roots of the bond market What do the green bars at the bottom signify? According to the table on the right, which country owns 2.9% of total US debt? What quality of US government bonds causes investors to buy them when market volatility rises? Why is fixed income called fixed income? Question1: Question2: Question3: Question4: Bond Valuation When investors doubt the creditworthiness of a As a general rule, what percentage of debt to GDP will make a government’s bond...

How accurately do GDP statistics portray the economy and why? - Inaccurately because the scope of GDP measurements Consider the formula GDP = C + I + G (x – m) - It went down Here is the most important economic data for Australia and Sweden - Sweden performance better In the United States, why is there a strong - Consumer spending accounts for two-thirds of the US Question 1 - The country has deflation. The bottom line is nominal growth and the top line is real growth Question 2 - G...

Introducing the stock market Why do companies do IPOs? - IPOs incentivize entrepreneurs to innovate as IPOs provide a way for entrepreneurs to monetize their work. Question 1: - An IPO crystallizes the value of the manager – owners’ stake Question 2: - Goldman Sachs Question 3: - “The Sum of the Share Prices of All 30 Dow Jones Members Will Triple” Question 4: - The S&P 500 Index The nature of equities What is the prime reason that Jenny’s discretionary income is more vola...

Summary BMC Fixed Income test, Complete questions & Answers.

FIN 4486 BMC Economic Answers: How accurately do GDP statistics portray the economy and why? Consider the formula GDP = C I G (x – m) Here is the most important economic data for Australia and Sweden In the United States, why is there a strong Question 1 Question 2 Question 3 Question 4   Monitoring GDP Question 1 Question 2 Question 3 Question 4 Forecasting GDP Here is the econo calendar This chart was captured in mid-2014 How have economic forecasts for this country ...

How accurately do GDP statistics portray the economy and why?-Inaccurately because the scope of GDP measurementsConsider the formula GDP = C + I + G (x – m)-It went downHere is the most important economic data for Australia and Sweden-Sweden performance betterIn the United States, why is there a strong-Consumer spending accounts for two-thirds of the USQuestion 1-The country has deflation. The bottom line is nominal growth and the top line is real growthQuestion 2-Green LineQuestion 3-ItalyQue...