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6. investment returns that come in the form of dividends and capital gains are associated with equities are called warrants
7. An agreement to sell a currency against another at spot exchange rate and buy the same amount of currency at an agree future rate
- currency options
- swap
- the american option
- forward exchange
8. first time equity shares of a private companY
9. hedging facilitates the transfer of risk
10. Raise of funds by borrowing
11. A contract the gives the right but not an obligation to exchange currencies
- currency options
- the american option
- forward exchange
- swap
12. Derivatives facilitates the transfer of risk
13. Purchase agreement is a form of short0term borrowing for dealers in government securities
- certificate of deposits
- repos
- commercial paper
14. floating rate bonds are
- bonds whose coupon payments vary according to a given benchmark like libor
- bonds that pay interest periodically
- bonds that do not pay coupons. bonds are purchased at discount to the final redemption amount
15. Raise funds by selling new securities
- investment bankers
- investment firms
16. zero coupon bonds
- bonds that pay interest periodically
- bonds that do not pay coupons. bonds are purchased at discount to the final redemption amount
- bonds whose coupon payments vary according to a given benchmark like libor
17. T-bills
- less than one year
- more than 10 years
- more than 5 years
18. The right to buy an asset at a future date at a price decided today are known as
- currency options
- the american option
- Forward purchase contract
- swap
19. Instruments where the issuer promises to pay the investor
20. Settlement day for currency swaps
- Normal T+ 2 days
- Normal T+ 3 days
- Normal T+ 6 days
