An Agreement Between Two Parties to Exchange a Series of Specified

question 28

Multiple Choice

An agreement between two parties to exchange a series of specified periodic cash flows in the future based on some underlying instrument or price is a(n)

• A)forward agreement.
• B)futures contract.
• C)interest rate collar.
• D)option contract.
• E)swap contract.

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Definitions:

Fidelity Magellan

Fidelity Magellan is a well-known mutual fund managed by Fidelity Investments, historically recognized for its strong performance and management.

Day Trade

The practice of buying and selling financial instruments within the same trading day.

Price-to-earnings Ratios

A valuation metric that compares the market price of a stock to its per-share earnings, used to evaluate if a stock is over or undervalued.

Weak Form

A market efficiency hypothesis that suggests past prices and volumes have no effect on future prices, implying that past market data cannot be used to predict future market movements.