Which of the Following Is a Source of Profit for a Swap

question 101

Multiple Choice

Which of the following is a source of profit for a swap dealer?

• A) Commission charged on the sale of bonds
• B) Bid-ask spread
• C) Margin account
• D) Option premium

Appreciate the significance of strategic human capital management for competitive advantage.

Understand the terminology used in HR forecasting, such as projection and envelope.

Recognize the role of environmental scanning and firm strategy in acquiring knowledge, skills, abilities, and competencies.

Understand the importance of organization design in influencing organizational success.

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Definitions:

Margin Of Safety

Margin of safety is the difference between actual or projected sales and the sales level at which the business breaks even.

Contribution Margin

The amount by which a product's selling price exceeds its total variable costs, indicating how much contributes to covering fixed costs and generating profit.

Pretax Income

Earnings of a company before any tax is applied, calculated by deducting all operating expenses, including cost of goods sold and interest, from revenues.

Curvilinear Costs

Costs that change with the level of output but at a non-constant rate, displaying a curved relationship between cost and output.