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Financial Markets
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Financial Markets

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Questions and Answers

What is a swap contract?

  • A contract where two parties exchange securities
  • A contract where two parties exchange cash flows over a period of time (correct)
  • A contract where two parties exchange financial assets
  • A contract where two parties exchange currencies
  • Which type of market is a marketplace where selling and buying of financial assets and securities take place?

  • Equity market
  • Debt market (correct)
  • Swap market
  • Option market
  • What does a call option give the buyer the right to do?

  • Sell the underlying asset at any price
  • Buy the underlying asset at a specified price (correct)
  • Sell the underlying asset at a specified price
  • Buy the underlying asset at any price
  • What does a put option give the buyer the right to do?

    <p>Sell the underlying asset at a specified price</p> Signup and view all the answers

    How are financial markets categorized based on the type of claim the investors have on the entity's assets?

    <p>By the type of claim the investors have on the entity's assets</p> Signup and view all the answers

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