Financial Institutions Management A Risk Management Approach 5E - CDN - Saunders - TBCH23

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1、CH23Student:___________________________________________________________________________1.Thepayoffvaluesonbondoptionsarepositivelylinkedtothechangesininterestrates.  True    False 2.Abondcalloptiongivestheholdertherighttoselltheunderlyingbondatapre-specifiedexerciseprice.  Tr

2、ue    False 3.FIsmayincreasefeeincomebyservingasacounterpartyforotherentitieswantingtohedgeriskontheirownbalancesheet.  True    False 4.Thebuyerofabondcalloptionstandstomakeapositivepayoffifchangesinmarketinterestratescausethebondpricetoriseabovetheexerciseprice.  True    Fal

3、se 5.Buyingacalloptiononabondensuresabankthatitwillbeabletosellthebondatagivenpointintimeforapriceatleastequaltotheexercisepriceoftheoption.  True    False 6.Thepayoffsonbondcalloptionsmovesymmetricallywithchangesininterestrates.  True    False 7.Thegaintoabuyerofbondcallopti

4、onsisunlimited,evenifinterestratesdecreasetozero.  True    False 8.Thebuyerofabondputoptionstandstomakeaprofitifchangesinmarketinterestratescausethebondpricetofallbelowtheexerciseprice.  True    False 9.Thelosstoabuyerofbondputoptionsislimitedtothepremiumpaid.  True    False 

5、10.Thegaintothewriterofabondoptionisunlimited.  True    False 11.Thelosstothebuyerofabondoptionisunlimited.  True    False 12.Thetradingprocessofoptionsisthesameasthatoffuturescontracts.  True    False 13.Theprofitonbondcalloptionsmovesasymmetricallywithinterestrates.  True  

6、  False 14.Regulatorstendtodiscourage,andevenprohibitinsomecases,FIsfromwritingoptionsbecausetheupsidepotentialisunlimitedandthedownsidelossesarepotentiallylimited.  True    False 15.WritinganinterestratecalloptionmayhedgeanFIwhenratesriseandbondpricesfall.  True    False 16.

7、Wheninterestratesrise,writingabondcalloptionmaycauseprofitstooffsetthelossonanFI'sbonds.  True    False 17.HedgingtheFI'sinterestrateriskbybuyingaputoptiononabondisanattractivealternativetoamanager.  True    False 18.Thelossesonapurchasedputoptionpositionwhenratesfallarelimit

8、edtotheoptionpremiumpaid.  True    False 19.Simultaneouslybuyingabon