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NEW QUESTION: 1
A company may choose to use a derivative to reduce risk on which of the following types of exposure?
I) Currency
II) Interest rate
III) Commodity price
A. II and III only
B. I and II only
C. I, II, and III
D. I and III only
Answer: C
NEW QUESTION: 2
Gamma Bank has $300 million in loans and $200 million in deposits. If the modified duration of the loans is estimated to be 2, and the modified duration of the deposits is estimated to be 1, then the change in Gamma Bank's equity value per 1% change in yield will be:
A. -$3 million
B. -$1 million
C. -$4 million
D. -$2 million
Answer: C
NEW QUESTION: 3
A. Option C
B. Option B
C. Option D
D. Option A
Answer: C