Forwards contract: these are over the counter contracts to buy or sell an underlying at certain time in the future for a given price
Futures contract: these contract are modification on the forwards contracts
Options: these are derivatives that give the holder a degree of freedom where they can exercise the right to deliver or not
Dana05 answered the question on July 15, 2019 at 15:13
- Highlight the characteristics of derivatives (Solved)
Highlight the characteristics of derivatives
Date posted: July 15, 2019. Answers (1)
- Give the uses of derivatives (Solved)
Give the uses of derivatives
Date posted: July 15, 2019. Answers (1)
- What are derivatives?(Solved)
What are derivatives?
Date posted: July 15, 2019. Answers (1)
- Give the definitions of base rate (Solved)
Give the definitions of base rate
Date posted: July 15, 2019. Answers (1)
- Describe loans and receivables as financial instruments(Solved)
Describe loans and receivables as financial instruments
Date posted: July 15, 2019. Answers (1)
- Describe commercial paper as financial instruments(Solved)
Describe commercial paper as financial instruments
Date posted: July 15, 2019. Answers (1)
- Five years ago, a company issued a corporate bond that has a yield of 7% per annum paid semiannually. The face value of the bonds...(Solved)
Five years ago, a company issued a corporate bond that has a yield of 7% per annum paid semiannually. The face value of the bonds is 10000 with a maturity period of 10 years. This bond can only be converted into 200 shares. If the bond was called, what is the call premium
Date posted: July 15, 2019. Answers (1)
- To raise money to build a plant, a company issues a bond that has a coupon yield of 5% paid semiannually and a face value...(Solved)
To raise money to build a plant, a company issues a bond that has a coupon yield of 5% paid semiannually and a face value of 10000 with a maturity of 10 years. What payments will be made on this bond
Date posted: July 15, 2019. Answers (1)
- Differentiate between warrants and convertible bonds (Solved)
Differentiate between warrants and convertible bonds
Date posted: July 15, 2019. Answers (1)
- State and explain the various types of corporate bonds (Solved)
State and explain the various types of corporate bonds
Date posted: July 15, 2019. Answers (1)
- Define the following terms associated with corporate bonds: Notes, Coupon payments, Maturity date, Coupon rate(Solved)
Define the following terms associated with corporate bonds
- Notes
- Coupon payments
- Maturity date
- Coupon rate
Date posted: July 15, 2019. Answers (1)
- What are corporate bonds?(Solved)
What are corporate bonds?
Date posted: July 15, 2019. Answers (1)
- Define the following terms Debt, Debt ratio, Leveraged, Highly leveraged (Solved)
Define the following terms
- Debt
- Debt ratio
- Leveraged
- Highly leveraged
Date posted: July 15, 2019. Answers (1)
- Give the definition of financial instruments (Solved)
Give the definition of financial instruments
Date posted: July 15, 2019. Answers (1)
- What are the uses of the various financial assets?(Solved)
What are the uses of the various financial assets?
Date posted: July 15, 2019. Answers (1)
- Briefly explain the characteristics of financial assets (Solved)
Briefly explain the characteristics of financial assets
Date posted: July 15, 2019. Answers (1)
- Give the strategies used to manage financial risk(Solved)
Give the strategies used to manage financial risk
Date posted: July 15, 2019. Answers (1)
- Give the definition of financial risk management (Solved)
Give the definition of financial risk management
Date posted: July 15, 2019. Answers (1)
- Briefly explain any five forms of financial risk (Solved)
Briefly explain any five forms of financial risk
Date posted: July 15, 2019. Answers (1)
- Highlight the functions of financial institutions (Solved)
Highlight the functions of financial institutions
Date posted: July 15, 2019. Answers (1)