Government Actual Usage of Derivatives Does NOT Include Which of the Following

question 17

Multiple Choice

Government actual usage of derivatives does NOT include which of the following?

• A) China's use of put options for defending the value of their currency during the Asian financial crisis of 1997.
• B) Warrants used as part of the Troubled Asset Relief Program (TARP)by the US government in 2008.
• C) Use of option pricing models in connection with warrant valuation in TARP.
• D) The when-issued market for US Treasury securities.
• E) The callability of US Treasury securities before 1985.

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Definitions:

Prediction Interval

A range of values that is likely to contain the value of an unknown parameter for future observations.

Margin of Error

Margin of Error is a statistic expressing the amount of random sampling error in a survey's results, indicating the potential variability in the results.

Confidence Intervals

An interval of values, sourced from statistical analyses of a sample, that is conjectured to include the value of a mysterious population parameter.

Binomial Distribution

A probability distribution that summarizes the likelihood that a value will take one of two independent states under a given number of trials.