Podcast
Questions and Answers
What is a swap contract?
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?
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?
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?
What does a put option give the buyer the right to do?
How are financial markets categorized based on the type of claim the investors have on the entity's assets?
How are financial markets categorized based on the type of claim the investors have on the entity's assets?