The Share Price Index (SPI) Contract Traded on the SFE

question 29

Multiple Choice

The Share Price Index (SPI) contract traded on the SFE has a face value equal to:

• A) $1000 × (All Ordinaries index).
• B) $25 × (S&P/ASX 200 index).
• C) $1000 × (SFE index).
• D) $100 × (S&P/ASX 100 index).

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Definitions:

Bond Indenture

A legal contract between bond issuers and bondholders, specifying the terms of the bond, including its maturity date, coupon rate, and other conditions.

Maturity

The point in time when a financial instrument such as a bond or loan becomes due and payable.

Term Structure

The relationship between interest rates or yields and different terms or maturities for comparable debt instruments.

Interest Rates

The amount charged, expressed as a percentage, by a lender to a borrower for the use of assets.