International Finance and Treasury MCQs

✅ The correct answer is option B.
For a particular security transaction, agreement is classified as ‘reverse repo’ with point of view of security buyer. Security Buyer is a professional security media platform that gathers the industry information and updates, and provides unique insights of the evolving security industry. We are benefiting from its strong marketing power, as well as the well-connected professional services. Security Buyers is one of the most effective media platforms in the marketplace.

✅ The correct answer is option D.
Time value of option = Price of option – Intrinsic value of option
= $350 – $280 = $70.

✅ The correct answer is option D.
Market in which currencies buy and sell and their prices settle on is called the foreign exchange market. The foreign exchange market (also known as forex, FX or the currency market) is an over-the-counter (OTC) global marketplace that determines the exchange rate for currencies around the world. Participants are able to buy, sell, exchange and speculate on currencies.

✅ The correct answer is option B.
If your local currency is in variable form and foreign currency is in fixed form quotation will be direct. A local currency, is a currency that can be spent a particular area at participating organisations. Usually it will act as a complementary currency, that is to be used in additional to a national currency, rather than replace it.

✅ The correct answer is option B.
More coupon payment or promised interest payment lower its duration. Duration is a measure of the sensitivity of the price of a bond or other debt instrument to a change in interest rates. A bond’s duration is easily confused with its term or time to maturity because they are both measured in years.

✅ The correct answer is option D.
Intrinsic value of call option is considered as out of money if stock price < exercise price. The intrinsic value of both call and put options is the difference between the underlying stock's price and the strike price. In the case of both call and put options, if the calculated value is negative, the intrinsic value is zero.

✅ The correct answer is option C.
One of biggest borrowers in globe is World Bank. The World Bank Group (WBG) was established in 1944 to rebuild post-World War II Europe under the International Bank for Reconstruction and Development (IBRD). It is one of a variety of organizations seeking to shape the world economy.

✅ The correct answer is option A.
Difference between face value of bond and call price of bond is considered as call premium. Call premium is the dollar amount over the par value of a callable debt security that is given to holders when the security is redeemed early by the issuer.

✅ The correct answer is option A.
Deposit that are required in futures contract and is considered as guarantee that conditions of contracts would be fulfilled is classified as initial margin. Initial margin is the percent of a purchase price that must be paid with cash when using a margin account.

✅ The correct answer is option A.
Eurobonds are issued by financial firms to avoid taxes. A eurobond is denominated in a currency other than the home currency of the country or market in which it is issued. These bonds are frequently grouped together by the currency in which they are denominated, such as eurodollar or euroyen bonds.