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QUESTION 36 A bank is deficient in capital by 525 MM. It can help cure the deficiency by borrowing $25 million in the inter-bank market
QUESTION 36 A bank is deficient in capital by 525 MM. It can help cure the deficiency by borrowing $25 million in the inter-bank market and holding the funds in cash True False QUESTION 37 A trucking company plans to buy 100,000 gallons of diesel fuel in January The spot market price is $240 gallon The company can remove its risk by entoring today into a (physical delivery) forward contract with a counterparty to buy the fuel at $250/gallon True Falso QUESTION 38 A trucking company plans to buy 100.000 gallons of diesel fuel in January The spot market price is $2 40 gallon The company can remove its risk by entering today into a cash settled) forward contract at $250/gallon whereby it receives from the counterparty the difference between $250 and the spot price in January x100,000 if the spot price is above $250, and pays the difference if it is below $250 True False
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