兹维博迪金融学第二版试题库11TB精选.doc

Chapter Eleven Hedging, Insuring, and Diversifying This chapter contains 35 multiple choice questions, 10 short problems and 5 longer problems. Multiple Choice One is said to ________ a risk if reducing one’s exposure to a loss requires giving up the possibility of a gain, whereas ________ means paying a premium to avoid possible losses. diversify; hedging insure; hedging hedge; insuring hedge; diversifying Answer: (c) A(n) ________ insures creditors against losses stemming from a debtor’s failure to make promised payments. hedge credit guarantee option asset guarantee Answer: (b) In a forward contract, the price for immediate delivery of an item is termed the ________. spot price forward price face value long position Answer: (a) In a forward contract, the party who commits to sell an item is said to take a ________, and the party who commits to buy the specified item is said to take a ________. long position; short position short position, spot position short position; long position long position; spot position Answer: (c) ________ are traded on organized exchanges. Forward contracts Futures contracts Options b and c Answer: (d) A(n) ________ is an agreement between two parties to exchange a series of cash flows at specified intervals over a specified period of time. futures contract swap contract option contract credit contract Answer: (b) The swap contract is equivalent to ________. a series of forward contracts a series of credit contracts a series of option contracts a series of diversification contracts Answer: (a) For a savings bank with customer liabilities that are short-term deposits earning an interest rate that changes with market conditions, one appropriate hedging strategy might be to roll over short-term bonds. This is termed ________. a swaps contract an options contract matching assets to liabilities an insurance contract Answer: (c) ________ are limits placed on compensation for particular losses covered under an insurance contract. exclusions ca