A collateralized mortgage obligation (CHO) A. derives its cash flow from the und

Question

A collateralized mortgage obligation (CHO) A. derives its cash flow from the underlying mortgage collateral B. is referred to as derivatiye security C. is structured so that there are several classes of bond holders D. all of the above with varying stated maturities E. none of the above 23.1. A CHO is structured vith various classes of bonds, vhich are comonly referred to as A. short maturity bonds. B. periodic interest bonds. acerual bonds tranches As the value of futures contracts is derived from the value of the underlying instrument, they are comnonly called A. commodities arbitrage instruments derivative instruments D. econdaries SAs to liquidating a futures contract, the parties invelved may choose to A. iquidate at the settlement date B. 1iquidate prior to the setclement date C. liquidation decisions are made solely by the exchange's board of directors. A and B none of the above E. Futures contracts are traded for cofEee, cocoa, sugar, and cattle. pork bellies interest rates, currencfes, common stock indexes. A and C all the above A. D. E. A major advantage of the futures market as compared to the cash market is that the degree of leverage attainable in the futures market is considerably A. greater less C. more costly. D. A and C To create a particular futures contract, an exchange A.must obcain approval froa the Commodity Futures Trading B. demonstrate that there is an econonic purpose for the contract. C. spark investor interest and serve investor needs if the futures D. all of the above 2-g Comaission contract is to ultimately succeed. Financial futures can be classified as A. stock index futures. B. interest rate futures C. currency futures. 11 of the above

Explanation / Answer

22. D) All the above

23. D) Tranches

24. C) Derivative Instruments

25. D) A and B

26. E) All the above.

27. A) Greater

28. D) All the above.

29. D) All the above

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