Department of Finance Professor: H.J. Abraham Lin Koppelman School of Business Brooklyn College FINC3377 Global Financial Management 26. Unique characteristics of Eurobond markets DO NOT include a. Absence of regulatory interference b. Less stringent disclosure c. Favorable tax status d. Following international interest rates e. Issuing bonds in a domestic market 27. The major liquid stock markets DO NOT include a NYSE, b. Euronext c. Zimbabwe Stock exchange d. Tokyo stock exchange e. Deutsche Bourse 28. Syndicated credits (which is not true) a. enable banks to risk lending large amounts b. are arranged by a lead bank with participation of other bank c. are with narrow spread d. are offered in bond markets e. diversified the loan default risk with several banks 29. Furo markets are a. long term markets b. include Eurobonds and Euroequities c include Euronotes: short to medium in d Euro commercial papers are usually issued in Euros, not uS$ e. include foreign bonds 30. Buyer of a currency call: a. The maximum profit is the premium b. Only exercises his/her right if the spot price is higher than the strike c Loss is unlimited and increases as the underlying currency rises if the writer does not own the currency (naked) Even owning the currency, the buyer will lose d