Which of the following is true of a volatility smile?
A. Implied volatility is on the horizontal axis and strike price is on the vertical axis
B. Historical volatility is on the horizontal axis and strike price is on the vertical axis
C. Implied volatility is on the vertical axis and strike price is on the horizontal axis
D. Historical volatility is on the vertical axis and strike price is on the horizontal axis
C
A volatility smile shows implied volatility (which is on the vertical axis) as a function of the strike price (which is on the horizontal axis).
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A primary source of funds for residential mortgage financing is:
A: Federal Home Loan Bank; B: Federal Savings and Loan Insurance Corporation; C: Federal savings and loan associations; D: Federal Housing Administration.
Harry Kunz applied for a job as a data entry clerk with the Clark Foundation. The job ad stated the minim requirements as being a bachelor's degree
Harry, who only possessed a high school diploma, lied on his resume by stating that he had received a Bachelor's Degree from the University of British Columbia. Harry got the job and performed extremely well. Two years after he was hired, his supervisor discovered that Harry had lied about his qualifications and he was immediately fired. Harry wishes to take legal action against his employer for wrongful termination. Which of the following is TRUE? A) Harry will likely be successful in recovering damages for wrongful termination of his employment as he was an excellent employee irrespective of his true educational qualifications. B) Harry did not make a material misrepresentation as his job performance illustrated clearly that a Bachelor's degree was not a true prerequisite of the post. C) Harry's employer can no longer rely on his having lied about his qualifications as grounds for his dismissal as too much time has passed. D) The employer was justified in terminating Harry's employment as Harry had made a material misrepresentation. E) Harry's dismissal was justified as he lied and any lie told by an employee to his employer is always grounds for immediate termination.