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NEW QUESTION: 1
An investor enters into a 5-year total return swap with Bank A, with the investor paying a fixed rate of 6% annually on a notional value of $100m to the bank and receiving the returns of the S&P500 index with an identical notional value. The swap is reset monthly, ie the payments are exchanged monthly. On Jan 1 of the fourth year, after settling the last month's payments, the bank enters bankruptcy. What is the legal claim that the hedge fund has against the bank in the bankruptcy court?
A. $6m
B. $100m
C. $0, as all payments on the swap are current
D. The replacement value of the swap
Answer: D
Explanation:
Explanation
According to ISDA standard definitions, the legal claim for OTC derivatives is the current replacement value of the contract. Therefore Choice 'c' is the correct answer. None of the other choices are correct.

NEW QUESTION: 2
핫스팟 질문
다음 명령문 각각에 대해 명령문이 참이면 예를 선택하십시오.
그렇지 않으면 No를 선택하십시오. 각각의 올바른 선택은 한 점으로 가치가 있습니다.

Answer:
Explanation:

NEW QUESTION: 3

A. Option B
B. Option C
C. Option E
D. Option A
E. Option D
Answer: B