Exotic bonds are ________ difficult to price than ordinary bonds and they attract ________ potential buyers

A) more; more
B) less; more
C) more; fewer
D) less; fewer

Answer: C

Business

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When the forward rate equals the expected future spot rate, the forward rate is said to be a(n) ________ of the future spot rate

A) unbiased predictor B) forward market investment C) forward market return D) unsystematic risk

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What is the payoff on an average-rate pound call option against the dollar?

What will be an ideal response?

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