The Following Are All Advantages of Having an Equity Swap

question 50

Multiple Choice

The following are all advantages of having an equity swap market except

• A) These agreements allow investors to take advantage of overall price movements in a specific country's stock market.
• B) Creating a direct equity investment in a foreign country may be difficult for some investors where it is prohibited by law.
• C) These agreements eliminate the need for a counterparty because they are traded on the NYSE.
• D) An investment fund wanting to accumulate foreign index returns denominated in their domestic currency may not be legally permitted to obtain sufficient exchange-traded derivative contracts to hedge a direct equity investment.
• E) All of the above are advantages of an equity swap market

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Definitions:

Probability Calculus

A branch of mathematics that deals with calculating the likelihood of different possible outcomes.

Negation

The logical operation that takes a proposition to its opposite in truth value, from true to false and vice versa.

Event

An occurrence or happening, particularly one of significance, that can be distinctly identified in time and space.

Probability

The quantification of the chances that a specific event will take place.