Examlex
Consider a supply and demand model of bonds for company X.Which of the following would you expect to happen if the default risk decreases for company X?
Put Option
A monetary contract enabling the holder the choice, though not the requirement, to sell an established amount of a base asset at a predetermined rate within a set timeframe.
Hedge
An investment made to reduce the risk of adverse price movements in a security, often by taking an offsetting position in a related security.
Market Price
The current cost at which you can buy or sell an asset or service.
Bushels
A bushel is a unit of volume that is used in the United States for measuring quantities of agricultural produce, such as grains or fruits.
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