1. How does the accrual accounting system impact the financial statements and the standing positions of firms in the simulation such that these may not reflect the true, long-term sustainability of the firms' strategies?
2. Which of the following are contracts that give the holder the right, but not the obligation, to buy or sell an underlying asset at a pre-specified price for a specified time period?
Options.
Futures.
Forwards.
Swaps.
All of the above.
3. A $200 million loan commitment has an up-front fee of 20 basis points and a back-end fee of 25 basis points on the unused portion.
If 25 percent of the commitment is taken down, the total fees are
$250,000.
$4,000,000.
$400,000.
$775,000.
$375,000.