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Question
An option buyer can:
A. exercise the option.
B. sell the option to another buyer.
C. allow the option to expire.
D. All of the options are correct.
E. exercise the option or must sell it to another buyer.
Answer
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Related questions
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Which of the following adjustments are made to gross loans and leases to obtain net loans and leases?
A. Loan and lease loss allowance is added to gross loans.
B. Unearned income is subtracted from gross interest received.
C. Investment income is added to gross interest received.
D. Loan and lease loss allowance and unearned income is subtracted from gross loans.
E. Loan and lease loss allowance is subtracted from gross loans and investment income is added to gross interest received.
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______________ is labeled "Accounting for Derivative Instruments and Hedging Activities".
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The short-term securities of the bank, including T-Bills and commercial paper, are often called __________________________ because they are the second line of defense to meet demands for cash.
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B. more aggressive marketing plans than other banks.
C. more employees than other banks.
D. more advanced technology than other banks.
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A. offering memorandum
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C. underwriter's commitment report
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A. two
B. three
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The Jones State Bank is planning to add a branch office on the west side of Edmond, Oklahoma. The bank has done a survey of local residents near the area where it wants to build the branch office and has discovered that most residents are in their 50's and 60's. Which factor would this address when considering whether to add a new branch?
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C. Average age of the local population
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Which of the following would not be a telephone service that customers can get from a bank call center?
A. The current balance in their account
B. A fax copy of a loan application to the bank
C. List of what transactions have passed through the account
D. Access to their safety deposit box
E. All the options are telephone services customers can get from a bank call center
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A(n) _________________________ is the fee a buyer must pay to be able to put securities to, or to call securities away from the option writer.
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A(n) _________________________ is an agreement between a buyer and a seller today which calls for the delivery of a particular security in exchange for cash at some future date for a set price.
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Maryellen Epplin notices that a particular T-Bill has a banker's discount rate of 9 percent in the Wall Street Journal. She knows that this T-Bill has 20 days to maturity and has a face value of $10,000.
What is the yield to maturity on this T-Bill?
A. 9 percent
B. 0.5 percent
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If interest rates on both assets and liabilities decrease by 2 percent in the next 90 days, what should happen to this bank's net interest margin?
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C. It should fall by 4 percent.
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Which of the following would be an example of a repriceable asset?
A. Money the bank has borrowed from the money market
B. Cash in the vault
C. Demand deposits that do not pay interest
D. Short-term securities issued by the government about to mature
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A bank is liability sensitive, if its:
A. deposits and non-deposit borrowings are not affected by changes in interest rates.
B. interest-sensitive assets exceed its interest-sensitive liabilities.
C. interest-sensitive liabilities exceed its interest-sensitive assets.
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The _______________ is determined by the demand and supply for loanable funds in the market.
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A. $50.25 million
B. -$15 million
C. -$50.25 million
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A. 100,000 shares
B. 33,333 shares
C. 46,667 shares
D. 214,286 shares
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C. 3,400
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A. Earnings volatility
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C. Dilution of ownership
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According to the textbook, the lackadaisical profit performance surrounding a merger may be explained by the:
A. tax inefficiencies due to a merger.
B. lenders cutting off credit lines due to the merger.
C. accounting irregularities when reporting earnings of the combined entity.
D. managerial hubris and sizeable merger premium that acquirers have to pay to shareholders of the acquired firms.
E. All of the options are correct.
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According to the textbook, bank mergers are often motivated by:
A. profit potential.
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C. expected tax benefits.
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The most important goal of any merger should be to increase the market value of the surviving firm.
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The merger of Bank of America and Security Pacific in 1992 resulted in an expansion of branch offices for both banks.