Which of the following correctly describes a repurchase agreement?a. The sale of a security with a commitment to repurchase the same security at a specified future date and a designated price.b. The sale of a security with a commitment to repurchase the same security at a future date left unspecified, at a designated price.c. The purchase of a security with a commitment to purchase more of the same security at a specified future date.

Which of the following correctly describes a repurchase agreement?a. The sale of a security with a commitment to repurchase the same security at a specified future date and a designated price.b. The sale of a security with a commitment to repurchase the same security at a future date left unspecified, at a designated price.c. The purchase of a security with a commitment to purchase more of the same security at a specified future date.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 6MC: A security in a portfolio of available-for-sale securities is transferred to the trading category....

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A contract requiring a specified future monetary payment at a specified future point in time in exchange for the delivery of a specific asset is called a: *A. nonconvertible option.B. hedge.C. long contract.D. swap.
A reverse repurchase agreement (Repo) a) A contract to sell a security or precious metals at a certain date at a predetermined priceb) A contract to purchase a security or precious metals at a certain date at a predetermined pricec) A Reverse Repurchase Agreement is the sale of specific liquid securities on the condition to purchase them back at a certain date at a predetermined priced) A Reverse Repurchase Agreement is the purchase of specific liquid securities on the condition to sell them back at a certain date at a predetermined price
_____ is a contract that involves compensation for specific potential future losses in exchange for periodic payments and that provides for the transfer of the risk of a loss, from one entity to another, in exchange for a premium. a.Spot contract b.Insurance c.Hedging d. Forward contract
Which of the following is true about forward contracts? a. The party that agrees to buy the asset is said to be in a short position. b. The party that agrees to sell the asset is said to be in a long position. c. The specified, fixed price in the contract is known as the forward rate. d. A forward contract requires an initial deposit of funds with the transacting broker.
which one is correct please confirm? Q4: Options are contracts that give the purchasers the option to buy or sell an underlying asset the obligation to buy or sell an underlying asset. the right to hold an underlying asset. the right to switch payment streams.
Which of the following best describes an option contract? a. It gives the holder the obligation to buy or sell an underlying asset at a prespecified price for a specified time period. b. It gives the holder the right, but not the obligation, to buy or sell an underlying asset at a prespecified price for an unspecified time period. c. It gives the holder the right, but not the obligation, to buy or sell an underlying asset at a prespecified price for a specified time period. d. It gives the holder the right, but not the obligation, to buy or sell an underlying asset at an unspecified price for an unspecified time period.
Forward contracts are contracts to buy or sell a specified amount of an asset at a specified, fixed price with delivery at a specified future point in time. Which of the following is true about these contracts? a. The party that agrees to buy the asset is said to be in a short position. b. The party that agrees to sell the asset is said to be in a long position. c. The specified, fixed price in the contract is known as the forward rate. d. A forward contract requires an initial deposit of funds with the transacting broker.
9. A realized gain or loss on the sale of an available-for-sale security is determined by comparing a. the carrying value of the security with the proceeds from the saleb. the original cost of the security with the proceeds from the salec. the market value at the latest balance sheet date with the proceeds from the saled. the original cost with the security's carrying value
Which of the following is true about forward contract expiration? a.A deliverable forward contract stipulates that the short will pay the agreed-upon price to the long, who in turn will deliver the underlying asset to the short. b.Under cash settlement, it permits the short to pay the net cash value of the position on the delivery date. c.Under cash settlement, it permits the long to pay the net cash value of the position on the delivery date. d.Under cash settlement, it permits the long and short to pay the net cash value of the position on the delivery date.
Which one of the following is true about a firm commitment? Select one: a. A firm commitment is a contract that allows both the buyer or seller an option to engage (or not) in a long-term transaction. b. A firm commitment is a transaction that has already occurred and the commitment to pay or receive payment is pending. c. A firm commitment occurs as a result of a historical relationship and there is an expected commitment to engage in a transaction in the future. d. A firm commitment is an agreement with legally enforceable terms
A spot contract is defined as: a. An agreement involving the exchange of an asset for cash at a fixed price in the future. b. An agreement involving the immediate exchange of an asset for cash. c. An agreement involving the future exchange of an asset for cash at a price that is determined daily. d. An agreement involving the immediate exchange of an asset for a foreign currency.
Which of the following must be provided to every potential buyer of a new security?a. A letter of comments.b. A deficiency letter.c. A prospectus.d. A Form S–16.