Q12: A long contract requires that the investor sell securities in the future. buy securities in the future. hedge in the future. close out his position in the future.
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which one is correct please confirm?
Q12:
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sell securities in the future.
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buy securities in the future.
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hedge in the future.
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close out his position in the future.
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- A best efforts underwriting is a situation where: Question 31Answer a. An underwriter buys securities from an issuer and reoffers them to the public at a higher price. b. An underwriter commits to securing 100% market acceptance of a securities issue. c. The issuer receives all the proceeds from a market issue. d. The underwriter act as an agent of the issuer in marketing the securities to investorswhich one is correct please confirm? Q9: Parties who have bought a futures contract and thereby agreed to _____ (take delivery of) the bonds are said to have taken a ____ position. sell; short buy; short sell; long buy; long1. Anton wants to have a portion of ownership of a certain company. Which of the following should he invest? A. Annuity B. Bonds C. Shares D. Stocks 2. What writtwn contract is exhibited by a debtor that is legally binding which stipulates the amount borrowed at a specified tine in the future? A. Stocks B. Annuity C. Amortization D. Bonds 3. Which of the following covers when the frequency of the regular payment is different from the frequency of interest conversion? A. Bonds B. Ammortilation C. General annuity D. Simple annuity 4. What term is refers to the type of arrangement where composition is important but not order? A. Courting B. Permutation C. Multiplication rulw D. Combination 5. If p q is a tautology, then what can you inter about p and q? A. P and Q are either true or false but not both B. P and Q are always false C. P and Q are always true D. P and Q are either both true or false both false
- which one is correct please confirm? Q5: Parties who have sold a futures contract and thereby agreed to _____ (deliver) the bonds are said to have taken a ____ position sell; short buy; short sell; long buy; longMr. Ahmed would like to buy securities. Which of the following securities should he not to buy to become the owner of a business? i Debentures ii. Equity Shares iii. Public Depositiv BondsYou want to invest in a company that guarantees your money's interest payments and returns at the maturity date as an investor. Which is the best option for this investment? a. bonds b. stocks c. stocks and bonds d. neither stocks nor bonds
- Consider a security that pays income to its holders (e.g., a dividend-paying stock, or acoupon bond). Should the forward price of this security (for a contract that matures attime T), F0,T, be higher than, lower than, or equal to the security's current spot price?Why?.There are three risky securities (A, B, and C) in the market. An investor can only invest in individual securities (not portfolio). E(r) σ A 0.2 1 B 0.3 2 C 0.21 3 (a) If a risk-averse investor prefers security C to security A. Will the investor prefer security B to security A?(b) Are there risk-averse investors who prefer A to B? [Hint: draw a graph to answer this question.]A hedger buys a futures contract, taking a long position in the wheat futures market. What are the hedger's obligations under this contract? Describe the risk that is hedged in this transaction, and give an example of someone who might enter into such an arrangement.
- An investor seeking to invest in one of these three alternatives: Islamic mutual funds, ETFs or REITS. (a) if he wants stable returns and needs annual income, what would you recommend to the investor? Justify (b) If the investor interested. capital gains, what would you recommend?Suppose that you purchase a Treasury bond futures contract at $95 per $100 of face value. What is your obligation when you purchase this futures contract? If an FI purchases this contract, in what kind of hedge is it engaged? Assume that the Treasury bond futures price falls to 94. What is your loss or gain? Assume that the Treasury bond futures price rises to 97. Mark your position to market.Mr. Ahmed would like to buy securities. Which of the following securities should he not to buy to become the owner of a business? i Debentures ii. Equity Shares iii. Public Deposit iv Bonds Only Bonds Only Public Deposit Ony Debentures Only Equity Shares