Exam (elaborations)
ARM 56 questions and answers already passed 2024
- Course
- Institution
ARM 56 questions and answers already passed 2024
[Show more]
Content preview
ARM 56 - Chapter 9Market Risk - correct answer ✔Uncertainty about an investment's future
value because of potential changes in the market for that type of investment
Interest Rate Risk - correct answer ✔The risk that a security's future value
will decline because of changes in interest rates
Exchange Rate Risk - correct answer ✔Uncertainty about an investment's
value because of potential changes in the exchange rate between currencies
Liquidity Risk - correct answer ✔The risk that an asset cannot be sold on
short notice without incurring a loss
Credit Risk - correct answer ✔The risk that customers or other creditors will
fail to make promised payments as they come due
Price Risk - correct answer ✔The potential for a change in revenue or cost
because of an increase or a decrease in the price of a product or an input
Forward Contract - correct answer ✔A contract that obligates one party to
buy and another party to sell a specific financial instrument or physical
commodity at a specified future date and price
Call Option - correct answer ✔An option to buy a set amount of the
underlying security at any time within a specified period
Put Option - correct answer ✔An option giving the holder the right to sell a
set amount of the underlying security at any time within a specified period
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller LEWISSHAWN55. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
78252 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now