Skip to content
Back to quiz
6. What might be achieved by a bond issuer retaining the right to repay a bond in either of two currencies at a pre-determined rate?
- An enhanced coupon rate on the bonds that will attract investors
- A superior credit rating for the bonds
- Enhanced gamma
7. A strategy of buying or selling a derivative without a position in the underlying asset is:
- Executable in the OTC market only
- Illegal
- Referred to as speculation
- Considered a hedging strategy
8. What is measured by gamma?
- The nonlinearity of an option's payoff line at one point
- The slope of an option's payoff line at one point
- The difference between spot and forward prices
- The ratio of short positions to long positions