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fExam4

Terms in this set (19)

What group has dominant share of exchange futures trading in the US
The CME Group
Expect the market price of a call option to be lower if volatility for underlying asset ____
decreases
Value of a put option would be expected to fall if the price of the underlying asset _____
appreciates
A _____ may exist as a way of getting around loan confidentiality issues : that is the consent of the borrow whose loan is being transferred into a pool
synthetic CDO
Study profit/loss profile graphs
...
short hedge protects against a _____ in cash price of an asset, while a long hedge protects against an ____ in the cash price
decrease, increase
Futures contracts are ____, forward contracts are _____
standardized, non standardized
An option on an interest rate swap
Swaption
____ is the OTC equivalent of an exchange traded futures contract on short term interest rates
Forward rate agreement
Part that wants out of the transaction will arrange for an addition swap in which the maturity on the new swap is equal to the time remanning of the original swap (2) reference rate is the same and (3) notional principal amount is the same
Swap reversal
buying a ____ can be used to hedge against a decline
put option
most ____ are not really intended to be settled by deliver. In fact, generally fewer than 2% or so of outstanding contracts are settled by delivery
futures contracts
with a ____ , credit risk and return are dependent on a second issuer, known as the reference issuer
Credit-linked note
a ____ or ____ would be termed a credit event, using credit derivative terminology
bankruptcy restricting
Regarding foreign exchange derivates, the ___ is the market of choice, with trading there much larger than trading on exchanges
forward market
Developed standardized contract language that could be used by parties to trades of a credit derivatives contracts
international swap and derivatives association
____ , specifically credit default swaps, allow the transfer of credit risk to another party without the sale of the loan
Credit derivatives
Major function of futures markets markets is to transfer price risk from ______
hedgers to speculators
____ market can be properly descried as an inter-bank and over-the-counter market
ForFX
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