Choose the correct answer 1.)Maroa Corporation entered into two derivatives contracts. The first is a contract to buy P5,000,000 face value bonds at P4,600,000. On the agreed date, the bonds were trading at P4,800,000. The second is a contract to sell 100,000 shares at a total price of P3,000,000. The shares were trading at P3,400,000 on the agreed date. The total gain or (loss) from the derivatives is A.)P600,000 B.)P200,000 C.)(P200,000) D.)(P600,000) 2.)Kris Corporation has the option to sell its investment in Joshua bonds at P4,500,000. It can exercise the option every third Wednesday of the next three months. The contract is a/an A.)European call option B.)American put option c.)Asian call option D.)Bermuda put option 3.)In the long run, the Central Bank can affect A.) inflation. B.) output. C.) unemployment. D.) the exchange rate
Choose the correct answer
1.)Maroa Corporation entered into two derivatives contracts. The first is a contract to buy P5,000,000 face
A.)P600,000
B.)P200,000
C.)(P200,000)
D.)(P600,000)
2.)Kris Corporation has the option to sell its investment in Joshua bonds at P4,500,000. It can exercise the option every third Wednesday of the next three months. The contract is a/an
A.)European call option
B.)American put option
c.)Asian call option
D.)Bermuda put option
3.)In the long run, the Central Bank can affect
A.) inflation.
B.) output.
C.)
D.) the exchange rate
Step by step
Solved in 3 steps
