3 Asset Classes and Financial Markets Flashcards
3 Asset Classes and Financial Markets
1
Q
- Give a brief explanation of four money market instruments.
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2
Q
- When will a spot FX trade settle?
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3
Q
- What factor is used when calculating a forward exchange rate between two currencies?
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4
Q
- What would be the consequences for an issuer if a bondholder exercises their put provision?
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5
Q
- Name four types of corporate bond.
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6
Q
- A government bond has a 6% coupon and is currently priced at 110. What is its flat yield?
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7
Q
- Name four disadvantages and two advantages of direct investment in property.
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8
Q
- What are REITs?
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9
Q
- Why might an investor choose a preference share rather than ordinary shares?
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10
Q
- What is the difference between order-driven and quote-driven trading systems?
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11
Q
- How does an option differ from a future?
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12
Q
- An investor has bought a call option exercisable at 100 for a premium of 10. If the underlying
share price is 98, is the option in-the-money, at-the-money, out-of the-money or at breakeven?
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13
Q
- What is DvP and where is it used?
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17
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18
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19
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20
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21
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22
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23
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24
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25
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26
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27
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28
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29
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30
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