What is credit default swap

Assignment Help Financial Management

1. Explain the rationale behind the statement that equity is a call option on the firm's assets. When would a shareholder allow the call to expire?

2. Discuss some of the options a firm has when it has trouble meeting its debt obligatgions.

3. What is Credit Default Swap? Provide an example, and explain why credit default swaps act like an insurance policy.

How should the choice of a be made for exponential smoothing : What type of time-series components would you expect for the following products and services? How should the choice of a be made for exponential smoothing?

What is the distinction between forecasting and planning : Is there a difference between forecasting demand and forecasting sales? Can demand be forecast from historical sales data?

Corporation is comparing two different capital structures : Rolston Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II).

Discuss some of the pros and cons of leasing : Discuss some of the pros and cons of leasing. Using particular real world examples.

What is credit default swap : What is Credit Default Swap? Provide an example, and explain why credit default swaps act like an insurance policy.

Systematic risk and not total risk is important : They like returns and dislike risk. If so, why do we contend that only systematic risk and not total risk is important?

Challenge relative to call option value-option pricing : Each student shall post information on article that discusses public corporation and financial manager's challenge relative to call option value, option pricing

Optimal level of leverage from tax-saving perspective : Define EBIT and discuss why the optimal level of leverage from a tax-saving perspective is the level at which interest equals EBIT

Performance evaluation of portfolio is difficult : Performance evaluation of a portfolio is difficult. What challenges can investment managers face.