International Finance And Treasury - Study Mode
[#146] Foreign bonds that are issued before Eurobonds are also called as
Correct Answer
(A) traditional international bonds
Explanation
Solution: Foreign bonds that are issued before Eurobonds are also called as traditional international bonds. An international bond is a debt investment that is issued in a country by a non-domestic entity. International bonds are issued in countries outside of the United States, in their native country's currency. They pay interest at specific intervals and pay the principal amount back to the bond's buyer at maturity.
[#147] Issued bond which is considered as hybrid bond is called
Correct Answer
(D) convertible bonds
Explanation
Solution: Issued bond which is considered as hybrid bond is called convertible bonds. A convertible bond is a fixed-income debt security that yields interest payments, but can be converted into a predetermined number of common stock or equity shares. The conversion from the bond to stock can be done at certain times during the bond's life and is usually at the discretion of the bondholder.
[#148] Suppliers and demanders of long term investment funds are work closely in
Correct Answer
(A) bond markets
Explanation
Solution: Suppliers and demanders of long term investment funds are work closely in bond markets. The bond market is the environment in which the issuance and trading of debt securities occur.
[#149] Intrinsic value of call option is
Correct Answer
(B) stock price - exercise price
Explanation
Solution: Intrinsic value of call option is stock price - exercise price. The intrinsic value of both call and put options is the difference between the underlying stock's price and the strike price. In the case of both call and put options, if the calculated value is negative, the intrinsic value is zero.
[#150] Number of shares outstanding are multiplied to price of stock to calculate
Correct Answer
(B) current market values
Explanation
Solution: Number of shares outstanding are multiplied to price of stock to calculate current market values. The current market value (CMV) is the approximate current resale value for a financial instrument.