In the Lehman bankruptcy the payoff to people who had bought CDS protection was 91.375% of the notional principal. How was this determined?
A. By calculation of the cheapest-to-deliver bond
B. By an auction process
C. By a calculation agent
D. By Lehman's liquidators
B
An auction process is now used to determine cash payoffs on CDSs in the event of a default.
You might also like to view...
Which of the following bank reconciliation items would result in a journal entry on the company's books?
a. Bank error b. Interest income c. Deposit in transit d. Outstanding checks
Noncash investing and financing transactions
A) appear as a separate schedule on the statement of cash flows. B) appear in either the investing or financing activities section, but not both. C) are excluded from the statement of cash flows. D) appear in both the investing and financing activities sections.
Ratio analysis is useful only if the ratio states a meaningful relationship between two numbers
Indicate whether the statement is true or false
Path–goal theory suggests that leaders should respond to autonomous group members with unstructured tasks from a ______.
A. directive style B. supportive style C. participative style D. achievement style