The Term "Insider Trading" Involves Insiders

question 60

Multiple Choice

The term "insider trading" involves insiders:

• A)using non-public information to buy or sell stock.
• B)trading in competitors' stock.
• C)stealing from the corporations they work for.
• D)providing misinformation to traders.

Distinguish between the functionalities of major financial telecommunications networks such as SWIFT and CHIPS.

Grasp the concept of conventional banks and how they differ from money center banks in their primary customer base.

Understand the mechanisms and purposes of international and domestic bonds in global finance.

Recognize the importance of assessing risk in capital investments using appropriate analytical methods.

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Definitions:

Put Option

A financial contract that gives the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specific time frame.

Long Straddle

A long straddle strategy involves simultaneously buying a put and call option on the same asset with the same strike price and expiration date, benefiting from a strong move in either direction.

Stock Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy a stock at a specified price within a certain period.

Call Premium

The amount by which the price of a callable bond exceeds its par (or nominal) value or the amount paid for an option above its intrinsic value.