Why might a variable rate mortgage be considered a "derivative" and a fixed rate mortgage not?

What will be an ideal response?


The pure definition of a derivative is one in which its value is determined by the price of another item. ARMs often use LIBOR to determine their value, thus have their values "derived" from another security. This answer may, of course, be splitting hairs.

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A retail store prices its goods to achieve a gross margin of 30 percent. Up to the date of a fire that destroyed the store's inventory, sales were $200,000 and cost of goods available for sale was $150,000 . The estimated cost of the inventory destroyed is

a. $10,000. b. $35,000. c. $60,000. d. $50,000.

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A country may place a limit on the volume of imported citrus fruit that is allowed. This is an example of a(n) ________

A) quota B) tariff C) customs duty D) fine E) excise duty

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Sales teams can often uncover problems, solutions, and sales opportunities that no individual salesperson could discover working alone

Indicate whether the statement is true or false

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Which of the following seating arrangements should be avoided at a meeting?

A. an oval table B. a long narrow table C. a round table D. a U-shaped table

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