Distinguish between margins in the securities markets and margins in the futures markets.

Q: What is the Futures and Options Market? What are the features? Provide information about the Futures…

A: Futures contract is a legal contract which is standardized in nature. The contract is used by market…

Q: What is the Vision and Mission of Muscat Securities Market?

A: The Muscat Securities Market (MSM) was established  as a public institution by Royal decree to…

Q: What is the difference between the dealer and the broker in the stock market? (Explain clearly.)

A: Broker:   A broker is a person who will buy and sell securities for their client.   Dealer:   A…

Q: distinguish between dilutive and antidilutive securities, and describe the implications of each for…

A: Diluted Securities are the financial instruments that can be converted into common stock and may…

Q: Discuss the differences between the primary and secondary markets.  when we buy stocks through…

A: Primary market is the market where new securities are issued in the market for the first time on the…

Q: Define speculation in derivatives

A: Individuals and Firms often trade in the derivatives market when they want to enter a trade on a…

Q: Define Trading securities.

A: Investment: It refers to the process of using the currently held excess cash to earn profitable…

Q: Features Equity Market Fixed-Income Market Types of Securities Traded Accessibility of the Market…

A:

Q: What are the similarities and differences in equity valuation and bond valuation?

A: Bonds: Bonds are a debt instrument on which interest is paid. They can be issued at a discount/par…

Q: What are the pros and cons of dealer markets (e.g. - treasury bond markets) as compared to trading…

A: The financial market known as a "dealer market" is where dealers list the prices at which they would…

Q: How do transaction costs affect the ability of forward and futures markets to arbitrage profits?

A: Both future and the forward contract involve the execution of the transaction at a future date at a…

Q: is a method of evaluating securities by iden

A: Explanation : Technical analysis can be understood as the way of appraising commodities that…

Q: Explain Important Terms Used in the Market for CMOs and Derivative Securities?

A: CMO (Collateralised Mortgage Obligation): The obligation to repayment ensured by the mortgage to be…

Q: Differentiate between the following types of markets: physical asset vs. financial markets, spot vs.…

A: Note : As per the guidelines, only first three parts will be answered.

Q: What is the Relationship Between Swaptions and Bond Options

A: Bond options may be a spinoff contract giving the holder (buyer) the proper, while not the…

Q: Critically compare the riskiness of bonds and stocks from the valuation model perspective

A: The main fundamental difference between shares and bonds as investment options is the risk involved…

Q: Explain the role of speculators in determining the price of a security on the stock market

A: Stock market are platform where there is trading of stocks happen so there is buying and selling of…

Q: Which of the following is rated by most securities rating services? Market risk Quality Quantity…

A: Market risk is the risk of change in prices because of market factor and volatility, and this…

Q: explain The Effectiveness of Technical Analysis in Stock, Bond, Gold, Currency, and Commodity…

A: The technical analysis is that analysis in which the trend of the price of the stock, gold, bond and…

Q: Explain the Use of Derivatives to Hedge Portfolio Risk?

A: The contract whose value derives from the fluctuation of values of the underlying assets is called…

Q: Explain the reasoning behind the bond-yield-plus-judgmental-riskpremium approach.

A: Approach under which judgmental risk premium is added into a yield on an entity that is owning the…

Q: Determine appropriate hedging and risk management strategies using a mix of underlying and…

A: Derivatives are financial instruments whose values are derived from other assets such as stocks,…

Q: In which of the following markets "new issues" of long term securities are bought and sold?

A: In foreign exchange market, currencies are bought and sold. In secondary market, buying and selling…

Q: What is marketable securities?

A: Balance sheet has different components. On the basis of liquidity, cash and cash equivalents are the…

Q: Changes in what price lead to gains and/or losses in futures contracts?

A: changes in underlying asset leads to gains and/or losses in future contracts.

Q: What is the difference (description) between Money Market, Bond Market, Equity Market, Foreign…

A: Money market, bond market, equity market, foreign exchange market and derivatives market are…

Q: Describe financial instruments and investment derivatives,

A: Financial instrument: A financial instrument is a monetary agreement among two parties, which can be…

Q: summarize the key features of the markets with the guide questions below. Features Equity Market…

A: The stock market is a location where traders may purchase and sell equities, investors can invest in…

Q: How does market cap effect the stock market?

A: Market capitalization is given by the formula: Market capitalization = Price per share x No. of…

Q: Identify which refers to the relationship of interest and time of maturity of securities.

A: interest refers to the return that an investor gets for investing his money in the security or…

Q: in options trading, margin must be posted by______

A: Margin is a amount of cash or securities that is necessary to deposit before executing trade in…

Q: What’s the difference between spot markets and futures markets?

A: Introduction: Spot market can be defined as a over the counter market which involves trading of…

Q: the difference in the manner that futures and options modify portfolio riks

A: Future contracts are those whose value is determined by the underlying assets. These contracts are…