With Y Measured on the Vertical Axis and X Measured

question 264

Multiple Choice

With y measured on the vertical axis and x measured on the horizontal axis, the slope of a straight line is defined as

• A) (change in x)/ (change in y).
• B) (change in y)/ (change in x).
• C) y/x.
• D) x/y.

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Definitions:

Forward Rate

The exchange rate specified in a forward exchange contract.

Premium

An amount paid for an insurance policy or an amount paid above the face value of a bond.

Cash Flow Hedge

A hedge of the exposure to the variability in cash flows that is attributable to a particular risk that is associated with all, or some component of, a recognized asset or liability or a highly probable forecast transaction and could affect profit or loss.

Forward Contract

A customized contract between two parties to buy or sell an asset at a specified price on a future date.