Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
10 Cards in this Set
- Front
- Back
|
What are the difference between broad-based indeces and narrow-based?
|
A narrow-based index measures the performance of a particular market segment whereas a broad-based measures stock that reflect the whole market
|
|
|
What is the difference in exercising an index option versus an equity option?
|
If the option is exercised there is no change of physical securities but instead the exercise results in a cash settlement
|
|
|
Volatility Market Index Options
|
Broad-based option calculated using the bid adn ask quotes of S&P index options. Weight both nearby and second nearby options that ahve at least eight days to expiration to produce a 30-day measure of volatility. |
|
|
What is the expiration cycle for VIX options?
|
VIX options expire on the Wednesday that is 30 days prior to the third Friday of the following calendar month
|
|
|
Who regulates the foreign currency market?
|
The Interbank Market establishes foreign currency rates
|
|
|
What are spot and forward transactions?
|
Spot transactions settle two business days after a trade of foreign currency while forward transactions settle in more than two days
|
|
|
What are the six currencies on the Philadelphia Stock Exchange?
|
Australian Dollar (XDA) British Pound (XDB) Canadian Dollar (XDC) Euro (XDE) Swiss Franc (XDS) Japanese Yen (XDN) -- sold in units of 1,000,000 |
|
|
What yield-based options can be purchased?
|
13-week treasury bills (IRX) Five-year treasury notes (FVX) 10-year treasury notes (TNX) 30-year treasury bonds (TYX) |
|
|
How are yield-based options settled?
|
They are settled on a cash basis with no physical delivery of securities
|
|
|
If an investor believes interest rates will decline they should...
|
Buy yield-based puts or sell yield-based calls
|
