covered call has the same payoff as: a) Long call b) short call c) long put d) shot put protective put has the same payoff as a) long call b) short call c) long put d) short put who pays who when the forward rate are greater than floating rate at expiration. When is that payment exchanged (paid)? a) floating pays, when contract expires b) floating pays, when contract expires + # of days to the contract c) forward pays, when contract expires d) forward pays, when contract expires + # of days to the contract and this was asked previously but just to review: long FRA has the same payoff as: a) long call interest rate option, long put interest rate option b) long call interest rate option, short put interest rate option c) short call interest rate option, long put interest rate option d) short call interest rate option, short put interest rate option
and this was asked previously but just to review: long FRA has the same payoff as: a) long call interest rate option, long put interest rate option b) long call interest rate option, short put interest rate option c) short call interest rate option, long put interest rate option d) short call interest rate option, short put interest rate option ------------------------------------------------------ B
Date: June 3, 2008 06:19PM covered call has the same payoff as: a) Long call b) short call c) long put d) shot put D protective put has the same payoff as a) long call b) short call c) long put d) short put A
<< who pays who when the forward rate are greater than floating rate at expiration. When is that payment exchanged (paid)? a) floating pays, when contract expires b) floating pays, when contract expires + # of days to the contract c) forward pays, when contract expires d) forward pays, when contract expires + # of days to the contract >>> B or D, is it B? i hate this FRA crap
jo_l Wrote: ------------------------------------------------------- > covered call has the same payoff as: > d) shot put > > protective put has the same payoff as > a) long call > > > who pays who when the forward rate are greater > than floating rate at expiration. When is that > payment exchanged (paid)? > a) floating pays, when contract expires > c) forward pays, when contract expires A little bit confused with the wording here. If float>fixed, fixed receiver(float payer) pays. > > > > > and this was asked previously but just to review: > > long FRA has the same payoff as: > b) long call interest rate option, short put > interest rate option
daj224 Wrote: ------------------------------------------------------- > << > who pays who when the forward rate are greater > than floating rate at expiration. When is that > payment exchanged (paid)? > > a) floating pays, when contract expires > b) floating pays, when contract expires + # of > days to the contract > c) forward pays, when contract expires > d) forward pays, when contract expires + # of days > to the contract > > > >>> > > > B or D, is it B? i hate this FRA crap daj in FRA the fixed rate payer may receive cash only if underlying (float) in bigger than fixed
who pays who when the forward rate are greater than floating rate at expiration. When is that payment exchanged (paid)? a) floating pays, when contract expires b) floating pays, when contract expires + # of days to the contract c) forward pays, when contract expires d) forward pays, when contract expires + # of days to the contract is it b?
D, A, C, B ?
I did not get the first two questions regarding covered call and protective put pay off. Can somebody plz explain a bit.
I got it through schweser qbank … thanks for bringing the questions in my attention