Which of the Following Are True Concerning the NYSE Amex

question 32

Multiple Choice

Which of the following are true concerning the NYSE Amex:
I. Many exchange traded funds are listed there.
II. Its listing requirements are stricter than the New York Stock Exchange.
III. It is a major market for exchange traded funds.
IV. It is a broker rather than a dealer exchange.

• A) I and II only.
• B) I and IV only.
• C) I, III and IV only.
• D) I, II, III and IV.

---

Definitions:

Spot Rate

The current market price at which a particular asset can be bought or sold for immediate delivery and payment.

Covered Interest Arbitrage

A strategy in which an investor uses a forward contract to hedge against exchange rate risk when investing in foreign interest-bearing instruments.

Nominal Risk-Free Rate

The rate of return on the safest investments, such as government bonds, without adjusting for inflation.

Forward Rate

The future interest rate agreed upon in a forward contract, which is a derivative financial instrument.