chuong 6 7 e quiz Thị trường tài chính và các định chế tài chính Madura

... ownership. True False correct: true 5 Firms often use direct foreign investment as a defensive strategy to circumvent barriers to trade. True False correct: true 6 What are some drawbacks to direct ... the answers are correct. correct: b 2 Firms should always locate production where the cost of labor is cheapest. True False correct: false 3 Examples of techniques MNCs use for forei...

Ngày tải lên: 13/05/2014, 13:59

... is an exchange rate where neither currency is the dollar. True False status: not answered () correct: true your answer: 14 The bid-ask spread represents compensation to the market maker for ... correct: true your answer: 6 The Eurocurrency market is the market for the Euro. True False status: not answered () correct: false your answer: 7 A company needs to buy E1 0 million. Th...

Ngày tải lên: 13/05/2014, 13:59

... part  Investors desiring periodic cash flows can select the IO part  Degrees of interest rate sensitivity vary  Several securities firms create their own versions of stripped securities  Merrill ... (cont’d)  Stripped Treasury bonds  One security represents the principal payment and a second security represents the interest payments  Investors who desire a lump sum payment can choos...

Ngày tải lên: 17/10/2013, 11:15

... Price Movements  The price of a bond should reflect the present value of future cash flows based on a required rate of return:  An increase in either the risk-free rate or the general level of ... Interest Rate Movements  If bonds are not held to maturity, future prices are most sensitive to changes in the risk-free rate  A measurement of bond price sensitivity can indicate the deg...

Ngày tải lên: 19/10/2013, 17:15

... (cont’d)  Wilshire 5000 Total Market Index  Created in 1 974 to reflect the values of 5,000 U.S. stocks  Represents the broadest index of the U.S. stock market  Closely monitored by the Federal Reserve  New ... are maintained by specialists and their clerks  There are 1,500 trading booths along the perimeter of the floor where brokers obtain orders  Listing requirements  NYSE require...

Ngày tải lên: 23/10/2013, 15:15

... prevent other investors from having their orders executed if the price reverses as a result  The “trade-through rule” on the NYSE requires that an order for stocks must be executed on the exchange ... volume  The higher the short interest ratio, the higher the level of short sales  The short interest ratio is also measured for the market to determine the level of short sales for the ma...

Ngày tải lên: 27/10/2013, 22:15

... price changes are independent over time  There is some evidence that stocks:  Have performed better in January (January effect)  Have performed better on Fridays than on Mondays (weekend effect)  Have ... multiple is influenced by the required rate of return and the expected growth rate of competitors  The inverse relationship between required rate of return and value exists in both...

Ngày tải lên: 27/10/2013, 22:15

... offers payments in periods when a specified interest rate index exceeds a specified ceiling (cap) interest rate  Payments are based on the amount by which the interest rate exceeds the ceiling  Typical ... feature  The fixed-rate payer may allow the cap if it believes interest rates will not exceed the cap and receives the up-front fee  Equity swaps  An equity swap involves the exchan...

Ngày tải lên: 06/11/2013, 08:15

... premiums  Influence of the market price  The higher the existing market price of the underlying financial instrument relative to the exercise price, the higher the call option premium  Influence of the stock’s ... sell order for a different customer  Earn the difference between the bid price and the ask price for the option 1 Chapter 14 Options Markets Financial Markets and Institut...

Ngày tải lên: 06/11/2013, 08:15