46. Swaps are often used to:

i) Turn fixed rate interest payments into variable rate interest payments

ii) Turn variable rate interest payments into fixed rate interest payments

iii) Hedge against exchange rate risk

iv) All of the above

v) None of the above

47. The change in the total value of the firm as a result of restructuring is equal to:

i) Net change in the total debt outstanding.

ii) Additional debt incurred minus the additional interest expense.

iii) Debt outstanding minus the market value of the equity.

iv) The net present value of restructuring

v) Change in the shareholders value minus the additional interest expense incurred

48. A Futures contract can be thought of as:

i) A custom Forward contract

ii) A Forward contract in which the buyer can walk away if the price of the underlying asset moves in an unfavorable direction

iii) A series of Forward contracts

iv) None of the above

v) All of the above