Question 1: The computation of basic earnings per share will include consideration of
a. all convertible securities.
b. only common shares outstanding.
c. all shares outstanding and all convertible securities.
d. only preferred shares outstanding
Question 2: Multiple Choice
A derivative is a financial instrument whose value is determined by
a. regulatory body such as the SEC.
b. an underlying security
c. futures and options
d. the Securities Exchange Commission
Question 3: Multiple Choice
Which contract is an option?
a call
a put
a future
both A and B are options.
To avoid a hostile takeover, a company may seek the help of a 'white knight' or perform strategies of their own. What exactly does this mean, and how is it accomplished??
The spot rate of the British pound to the dollar is 1.68 ($/£). The 180 day forward rate is $1.71, the annualized forward premium is: (Show your work/calculations/formulas)