1. Giving the purchaser the right to sell the underlying security at a prespecified price is a
put option.
call option.
naked option.
futures option.
credit spread call option.
2. Capital structure refers to:
A. the determination of the ideal mix of current versus long-term assets.
B. the methods by which fixed assets are used to produce a tangible product.
C. the mix of current assets and current liabilities.
D. the acquisition or disposition of a building or other long-term asset.
E. decisions related to long-term debt and equity financing.
3. An FI would normally purchase a cap if it was funding fixed-rate assets with variable-rate liabilities.
True
False