Examlex

Solved

There Are Three Reasons Why Futures Options on Fixed-Income Securities

question 51

Essay

There are three reasons why futures options on fixed-income securities have largely supplanted options on physicals as the options vehicle used by institutional investors. Describe two of these three reasons.


Definitions:

Damage Repair

The process of fixing or restoring property or items that have been harmed or degraded.

Depreciated

The reduction in the value of an asset over time due to wear and tear or obsolescence.

Ordinary Maintenance

Routine upkeep and repair of equipment and facilities to keep them in their original condition without significantly enhancing their value or extending their life.

Book Value

The net asset value of a company calculated by total assets minus intangible assets (patents, goodwill) and liabilities.

Related Questions