题目内容

A portfolio manager enters into an equity swap with a swap dealer. The portfolio manager agrees to pay the return on the Value Index and receive the return on the Growth Index. The swap’s notional principal is $50 million, and the payments will be made semi-annually. The levels of the equity indices are as follows:Index& Level at Start of Swap& Level Six Months LaterValue Index & ＄5,460 & ＄5,350Growth Index & ＄1,190 & ＄1,200The net amount owed to the portfolio manager after six months is closest to:

A. $1,427,494.
B. $1,007,326.
C. $587,158.

查看答案

搜索结果不匹配？点我反馈

更多问题

When parties exchange fixed cash payments for payments that depend on the returns to a stock or a stock index, they are purchasing a(n):

A. equity swap.
B. index fund.
C. stock option.

查看答案

A dealer has entered into an equity swap as the fixed-rate payer. The swap is based on the returns of the S&P500 index. On the last settlement date, the index fell by 2% due to a significant drop in the value of a few of its component stocks.On the last settlement date, the dealer would have to pay:

A. the entire fixed payment it owes.
B. a netted amount of fixed payment.
C. a fixed-rate payment and an equity payment.

查看答案

Which one of the following statements about swaps is FALSE?

A. In an interest rate swap, only the net interest payments are swapped.
B. In a currency swap, only net interest payments are made.
C. In a currency swap, the notational principal is actually swapped twice, once at the beginning of the swap and again at the termination of the swap.
D. Swaps are a zero sum game.

查看答案

Which of the following statements about swaps is FALSE?

A. The main motivation for a swap is cost reduction and privacy.
B. The notational principal is swapped at the beginning and end of a currency swap.
C. The notational principal is swapped at the beginning of an interest rate swap.
D. A plain vanilla interest rate swap is the exchange of fixed for variable rate interest.

查看答案

A. $1,427,494. B. $1,007,326. C. $587,158.

When parties exchange fixed cash payments for payments that depend on the returns to a stock or a stock index, they are purchasing a(n):

Which one of the following statements about swaps is FALSE?

Which of the following statements about swaps is FALSE?

A. $1,427,494.
B. $1,007,326.
C. $587,158.