If a Tranche Spread Is 55 Basis Points and the Fixed

question 12

Multiple Choice

If a tranche spread is 55 basis points and the fixed coupon is 60 basis points,which of the following happens when a trader buys protection?

• A) The trader pays an estimate of the present value of 5 basis points per year and then pays 55 basis points per year
• B) The trader pays an estimate of the present value of 5 basis points per year and then pays 60 basis points per year
• C) The trader receives an estimate of the present value of 5 basis points per year and then pays 55 basis points per year
• D) The trader receives an estimate of the present value of 5 basis points per year and then pays 60 basis points per year

Distinguish between different types of skills required at various levels of management, including technical, human relations, and conceptual skills.

Recognize the contributions of key figures in the management field, such as Frederick W. Taylor, Henri Fayol, and Abraham Maslow.

Analyze the importance of efficiency, predictability, and long-term planning in management practices.

Understand the significance of human relations and people orientation in supervision and management.

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Definitions:

Shaping

Shaping is a psychological conditioning technique in which successive approximations toward a desired behavior are reinforced, gradually leading to the adoption of the behavior.

Reinforcing

The process of encouraging or establishing a pattern of behavior by offering rewards or incentives.

Behavioral Goals

Specific objectives set to change or maintain an individual's behavior, often involving measurable and achievable steps.

Positive Reinforcement

A technique in behavior modification that involves giving a reward to increase the likelihood of a desired response.