Pac-Coast Insurance (PCI) concentrates its underwriting activities in California. The company is concerned that if a catastrophic earthquake occurs, it might threaten the solvency of the company
To address this risk, PCI issued some debt securities. If a catastrophic earthquake occurs, PCI does not have to repay the full amount borrowed or pay interest. The securities PCI issued are called
A) catastrophe futures contracts.
B) interest rate swaps.
C) catastrophe bonds.
D) contingent options contracts.
Answer: C
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Suppose that the objective function coefficient for product C increases by $8. What impact will this have on the current values of the optimal solution?
A) No change. B) Current solution will change. C) Solution will become infeasible. D) Solution will become unbounded. E) Not enough information is provided.
Installations
A. are very large expense items for buyers as soon as they buy. B. seldom involve multiple buying influence. C. are purchased often. D. are important long-lived capital items. E. are always custom-made.
The main outcome of the Gramm-Leach-Bliley Act of 1999 is to allow:
A) banks, insurers and security dealers to openly compete with one another B) banks, insurers and security dealers to form financial services holding companies C) insurers to choose between state or federal regulation D) banks to evade the provisions of the Glass-Steagall Act
American investors pay attention to only the Dow Jones Industrial Average
Indicate whether the statement is true or false