题目内容

If a bank manager wants to protect the bank against losses that would be incurred on its portfolio of treasurysecurities should interest rates rise, he could

A. sell call options on T-bond futures.
B. buy call options on T-bond futures.
C. buy put options on T-bond futures.
D. sell put options on T-bond futures.

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更多问题

An investor writes a put option on FTSE 100 Index futures. Which of the following best describes the investor’s position with respect to the put contract and her exposure to the underlying index future, respectively?

A. Long, short
B. Short, long
C. Short, short

In what way is the payoff of a forward rate agreement (FRA) most likely different from the payoff of an interest rate option?

A. It is based on a fixed exercise rate.
B. It is based on a notional principal amount.
C. It is paid immediately when the contract expires.

An interest rate cap can best be described as a combination of a series of interest rate:

A. put options.
B. call options.
C. call and put options.

A combination of interest rate calls is referred to as a:

A. cap.
B. floor.
C. caplet.

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