Question
24. Suppose Sammy has invested $500,000 in Facebook bonds. He wants to insure his investment in case Facebook goes bankrupt. Which of the following would
24. Suppose Sammy has invested $500,000 in Facebook bonds. He wants to insure his investment in case Facebook goes bankrupt. Which of the following would be a good strategy for Sammy?
| A. | Covered call | |
| B. | Credit default swap | |
| C. | Protective Put | |
| D. | Protective call |
25. Suppose Sammy has invested $500,000 in Facebook stock He wants to insure his investment in case Facebook stock drops a large amount. Which of the following would be a good strategy for Sammy?
| A. | Covered call | |
| B. | Credit default swap | |
| C. | Protective Put | |
| D. | Protective call |
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The New Public Finance
Authors: Inge Kaul, Pedro Condeicao
1st Edition
0195179978, 978-0195179972
