A Doughnut Shop Sells 20 Kinds of Doughnuts

question 27

Short Answer

A doughnut shop sells 20 kinds of doughnuts. You want to buy 30 doughnuts. How many possibilities are there if you want at most 12 of any one kind?

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Definitions:

Treasury Bond

Long-term, fixed interest government debt securities with a maturity of more than ten years.

STRIPPED Cash Flows

Cash flows from financial instruments that have been separated from their financial structure, often used in securitization.

Arbitrage

The practice of taking advantage of a price difference between two or more markets, striking a combination of matching deals that capitalize upon the imbalance.

Forward Rates

Interest rates or currency exchange rates fixed now for transactions that will occur at a future date.