Insurance

Euro dollar futures prices with maturities of 3, 6, and 9 months are 89.04, 88.75, and 88.55, ...

Euro dollar futures prices with maturities of 3, 6, and 9 months are 89.04, 88.75, and 88.55, ...

Euro dollar futures prices with maturities of 3, 6, and 9 months are 89.04, 88.75, and 88.55, respectively. What is the annualized swap rate on 9-month securities?
A) 8.55%
B) 9.68%
C) 11.34%
D) 13.24%

elf_fu   506   4 Replies

Anonymous

The 3-year swap price on a new oat swap agreement is $5.94. Interest rates immediately rise on 1, 2, ...

The 3-year swap price on a new oat swap agreement is $5.94. Interest rates immediately rise on 1, 2, ...

The 3-year swap price on a new oat swap agreement is $5.94. Interest rates immediately rise on 1, 2, and 3-year zero coupon bonds from 5.1%, 5.4%, and 5.7% to 5.2%, 5.6%, and 6.0%, respectively. What is net swap payment per year if the reverse transa

elf_fu   1189   8 Replies

Anonymous

A stock is selling for $53.20. Interest rates are 6.0% and the returns on the stock have a standard ...

A stock is selling for $53.20. Interest rates are 6.0% and the returns on the stock have a standard ...

A stock is selling for $53.20. Interest rates are 6.0% and the returns on the stock have a standard deviation of 24.0%. What is the forecasted up movement in the stock over a 6-month interval?
A) $64.96
B) $69.69
C) $73.48
D) $76.

elf_fu   591   7 Replies

Anonymous

A strategy consists of buying a market index product at $830 and longing a put on the index with a ...

A strategy consists of buying a market index product at $830 and longing a put on the index with a ...

A strategy consists of buying a market index product at $830 and longing a put on the index with a strike of $830. If the put premium is $18.00 and interest rates are 0.5% per month, what is the profit or loss at expiration (in 6 months) if the marke

elf_fu   691   7 Replies

bio_man

In the case of a 1-year option, the current stock price is $52 per share. If the stock price has an ...

In the case of a 1-year option, the current stock price is $52 per share. If the stock price has an ...

In the case of a 1-year option, the current stock price is $52 per share. If the stock price has an equal chance of ending the year at either $58 or $45, what is the △ given an interest rate of 6.0% and an exercise price of $50?
A) 0.2145
B

elf_fu   323   3 Replies

Anonymous

A stock is selling for $68.50. Interest rates are 6.0% and the returns on the stock have a standard ...

A stock is selling for $68.50. Interest rates are 6.0% and the returns on the stock have a standard ...

A stock is selling for $68.50. Interest rates are 6.0% and the returns on the stock have a standard deviation of 32.0%. What is the forecasted price of the stock using 3-month periods at Suudu?
A) $74.08
B) $94.24
C) $100.17
D) $1

elf_fu   719   6 Replies

Anonymous

In a specific wager, Pat is paid $5.00 if the price of ABC Corp. is above $85.00. Currently, ABC ...

In a specific wager, Pat is paid $5.00 if the price of ABC Corp. is above $85.00. Currently, ABC ...

In a specific wager, Pat is paid $5.00 if the price of ABC Corp. is above $85.00. Currently, ABC Corp. price is $75.00, σ = 0.25, r = 0.04, div = 0 and the wager lasts 6 months. If the price is below $85.00, Pat must pay $5.00. What is the net value

elf_fu   338   3 Replies

Anonymous

Assume S = $33.00, σ = 0.32, r = 0.06, div = 0.01. You short 100 $35 strike calls at 68 days until ...

Assume S = $33.00, σ = 0.32, r = 0.06, div = 0.01. You short 100 $35 strike calls at 68 days until ...

Assume S = $33.00, σ = 0.32, r = 0.06, div = 0.01. You short 100 $35 strike calls at 68 days until expiration. Under a delta hedge position, what is your overnight profit/loss if the stock rises to $34.50?
A) $9.23 loss
B) $9.23 gain
C

elf_fu   361   2 Replies

Anonymous

Insurance Fraud Investigation question

Insurance Fraud Investigation question

How do insurance fraud investigation agencies employ advanced techniques, such as data analytics, forensic analysis, and surveillance, to detect and prevent fraudulent activities across various insurance sectors? What strategies do these agencies ado

toxox   188   1 Reply

avance37

High deductible group health insurance plans have all of the following characteristics EXCEPT

High deductible group health insurance plans have all of the following characteristics EXCEPT

High deductible group health insurance plans have all of the following characteristics EXCEPT
A) health savings accounts or health reimbursement accounts.
B) high dollar deductibles.
C) low coverage limits.
D) major medical insur

JamesLu   338   2 Replies

verkhovina

If an applicant for insurance informs his broker of all material facts regarding the risk, and the ...

If an applicant for insurance informs his broker of all material facts regarding the risk, and the ...

If an applicant for insurance informs his broker of all material facts regarding the risk, and the broker does not pass those facts along to the insurer, it's possible that the insurer can legally deny any subsequent claim.
T/F?

medulla   261   2 Replies

Zy

Large employers with a large number of employees often use pooling to self-insure some of their ...

Large employers with a large number of employees often use pooling to self-insure some of their ...

Large employers with a large number of employees often use pooling to self-insure some of their risk.
T/F?

keyone   334   3 Replies

Zy

Which of the following statements is false?

Which of the following statements is false?

Which of the following statements is false?
A) Assessment mutuals provide primarily fire and windstorm insurance.
B) A stock insurance company is a profit-making venture in both life and property insurance.
C) Dividends are paid to sto

medulla   306   2 Replies

Zy

Which of the following statements is correct about the fair rate of return for insurance ...

Which of the following statements is correct about the fair rate of return for insurance ...

Which of the following statements is correct about the fair rate of return for insurance companies?
A) The fair rate of return is measured using the expense ratio.
B) The fair rate of return is governed by law.
C) The fair rate of retu

medulla   262   2 Replies

Zy

A difference between a contract issued on a "named peril" basis versus an "open ...

A difference between a contract issued on a "named peril" basis versus an "open ...

A difference between a contract issued on a "named peril" basis versus an "open peril" or "all-risk" basis is:
A) the "named peril" contract usually covers more perils
B) the "named peril" c

keyone   297   3 Replies

Zy

Midlands Insurance has 100 policyholders. It expects that this year's losses for all of its ...

Midlands Insurance has 100 policyholders. It expects that this year's losses for all of its ...

Midlands Insurance has 100 policyholders. It expects that this year's losses for all of its policyholders will total $111,000. The predicted expenses of operating the insurance pool are $46,000, expected investment earnings are $20,000, and the

keyone   255   2 Replies

Zy

Most investment income of insurance companies comes from medium to high risk investments in order to ...

Most investment income of insurance companies comes from medium to high risk investments in order to ...

Most investment income of insurance companies comes from medium to high risk investments in order to reduce the price of insurance as much as possible.
T/F?

keyone   302   2 Replies

Zy

The loading expenses plus a fair rate of return minus any investment income is the starting point ...

The loading expenses plus a fair rate of return minus any investment income is the starting point ...

The loading expenses plus a fair rate of return minus any investment income is the starting point for the calculation of the risk premium for an insurance policy.
T/F?

keyone   257   3 Replies

Zy

Which of the following statements about the counterparty to a risk management derivatives contract ...

Which of the following statements about the counterparty to a risk management derivatives contract ...

Which of the following statements about the counterparty to a risk management derivatives contract is correct?
A) The counterparty has the same expectations about future price movements as the risk manager.
B) The counterparty charges a fix

keyone   340   2 Replies

Zy

As long as their correlation coefficient is less than 1, risk is being reduced by adding investments ...

As long as their correlation coefficient is less than 1, risk is being reduced by adding investments ...

As long as their correlation coefficient is less than 1, risk is being reduced by adding investments to the pool.
T/F?

medulla   275   2 Replies

Zy

One of the benefits of bearing risk collectively is that the group can better afford to obtain ...

One of the benefits of bearing risk collectively is that the group can better afford to obtain ...

One of the benefits of bearing risk collectively is that the group can better afford to obtain better data compared to one company alone.
T/F?

medulla   357   2 Replies

Zy

The core concept underlying the risk reducing effects of diversification and hedging is the ...

The core concept underlying the risk reducing effects of diversification and hedging is the ...

The core concept underlying the risk reducing effects of diversification and hedging is the correlation coefficient.
T/F?

medulla   285   2 Replies

Zy

Currency risk is risk associated with the fluctuation of currency values relative to another ...

Currency risk is risk associated with the fluctuation of currency values relative to another ...

Currency risk is risk associated with the fluctuation of currency values relative to another currency.
T/F?

keyone   246   3 Replies

Zy

When the variance of a probability distribution is $81,000 the risk equals:

When the variance of a probability distribution is $81,000 the risk equals:

When the variance of a probability distribution is $81,000 the risk equals:
A) $900
B) $6,561,000,000
C) $284.61
D) There is not enough information to calculate the risk.

keyone   971   6 Replies

Kamil Kwak

Assume that a $50 strike put pays a 2.0% continuous dividend, r = 0.07, σ = 0.25, and the stock ...

Assume that a $50 strike put pays a 2.0% continuous dividend, r = 0.07, σ = 0.25, and the stock ...

Assume that a $50 strike put pays a 2.0% continuous dividend, r = 0.07, σ = 0.25, and the stock price is $48.00. What is the profit or loss, per share, for a short put position if the option expires in 60 days and the price rises to $50.00 after 5 da

elf_fu   668   4 Replies

Bixam chanagoni

Suppose the spot exchange rate is $1.43 per British pound and the strike on a dollar denominated ...

Suppose the spot exchange rate is $1.43 per British pound and the strike on a dollar denominated ...

Suppose the spot exchange rate is $1.43 per British pound and the strike on a dollar denominated pound call is $1.30. Assume r = 0.045, rf = 0.06, σ = 0.15 and the option expires in 180 days. What is the call option price?
A) $0.133
B) $0.1

elf_fu   568   2 Replies

naahemaa

An investor enters into a 2-year swap agreement to euros at $1.32 per euro. Soon after the swap is ...

An investor enters into a 2-year swap agreement to euros at $1.32 per euro. Soon after the swap is ...

An investor enters into a 2-year swap agreement to euros at $1.32 per euro. Soon after the swap is created forward prices rise and the new swap price on a similar swap is $1.45. If dollar denominated interest rates are 4.0% and 4.5% on 1- and 2-year

123

elf_fu   1837   38 Replies

Tang Shun Yan

Dan picked up his friend Rodney to drive to their softball game. Both Dan and Rodney have a Personal ...

Dan picked up his friend Rodney to drive to their softball game. Both Dan and Rodney have a Personal ...

Dan picked up his friend Rodney to drive to their softball game. Both Dan and Rodney have a Personal Auto Policy (PAP) with $5,000 of medical payments coverage. Dan hit a parked car, and Rodney was injured, incurring $9,000 of medical expenses. How w

JamesLu   297   3 Replies

also

What is the price of a $60 strike put? Assume S = $63.75, σ = 0.20, r = 0.055, the stock pays no ...

What is the price of a $60 strike put? Assume S = $63.75, σ = 0.20, r = 0.055, the stock pays no ...

What is the price of a $60 strike put? Assume S = $63.75, σ = 0.20, r = 0.055, the stock pays no dividend and the option expires in 50 days?
A) $0.66
B) $0.55
C) $0.44
D) $0.33

elf_fu   319   3 Replies

Prince Ntim Asamoah

Assume S = $33.00, σ = 0.32, r = 0.06, div = 0.01. You short 100 $35 strike puts at 68 days until ...

Assume S = $33.00, σ = 0.32, r = 0.06, div = 0.01. You short 100 $35 strike puts at 68 days until ...

Assume S = $33.00, σ = 0.32, r = 0.06, div = 0.01. You short 100 $35 strike puts at 68 days until expiration. Under a delta hedge position, what is your overnight profit/loss if the stock rises to $34.50? Assume no cost to short stock.
A) $8.30

elf_fu   288   2 Replies

Junior Silva

A 4-year bond with a price of 100.696 exists. The duration on the bond is 3.674. If the yield rises ...

A 4-year bond with a price of 100.696 exists. The duration on the bond is 3.674. If the yield rises ...

A 4-year bond with a price of 100.696 exists. The duration on the bond is 3.674. If the yield rises from 5.8% to 6.2%, what is the new bond price as estimated by the duration?
A) $98.40
B) $99.30
C) $100.60
D) $101.40

elf_fu   542   6 Replies

Shangchen Ke

Which of the following statements about uninsured motorists coverage is true?

Which of the following statements about uninsured motorists coverage is true?

Which of the following statements about uninsured motorists coverage is true?
A) An innocent motorist must establish that the uninsured motorist is legally liable.
B) The amount of coverage in most states must be at least $300,000.
C)

AzJose   240   2 Replies

mosharifi

A 6-month forward contract for corn exists with a price of $1.70 per bushel. If Farmer Jayne decides ...

A 6-month forward contract for corn exists with a price of $1.70 per bushel. If Farmer Jayne decides ...

A 6-month forward contract for corn exists with a price of $1.70 per bushel. If Farmer Jayne decides to hedge her 20,000 bushels of corn with the forward contract, what is her profit or loss if spot prices are $1.65 or $1.80 when she sells her crop i

elf_fu   465   4 Replies

sf3sdsdf

Granite Insurance Company entered into a treaty reinsurance agreement with Rock Solid Reinsurance ...

Granite Insurance Company entered into a treaty reinsurance agreement with Rock Solid Reinsurance ...

Granite Insurance Company entered into a treaty reinsurance agreement with Rock Solid Reinsurance (RSR). Granite's retention limit is $400,000 and RSR agreed to provide reinsurance for up to $2.0 million. If Granite writes an $800,000 policy, RS

JamesLu   406   3 Replies

João Vítor Almeida

An investor purchases a call option with an exercise price of $55 for $2.60. The same investor sells ...

An investor purchases a call option with an exercise price of $55 for $2.60. The same investor sells ...

An investor purchases a call option with an exercise price of $55 for $2.60. The same investor sells a call on the same security with an exercise price of $60 for $1.40. At expiration, 3 months later, the stock price is $56.75. All other things being

elf_fu   417   4 Replies

徐羿

The forward prices on a barrel of crude oil are $112 and $118 in years one and two, respectively. ...

The forward prices on a barrel of crude oil are $112 and $118 in years one and two, respectively. ...

The forward prices on a barrel of crude oil are $112 and $118 in years one and two, respectively. The interest rates on zero coupon government bonds are 3.0% and 3.5% in years one and two, respectively. What is the likely 2-year swap price on a barre

elf_fu   494   3 Replies

謝秉霖校友

You wish to create a synthetic forward rate agreement in which you would lock in a return between ...

You wish to create a synthetic forward rate agreement in which you would lock in a return between ...

You wish to create a synthetic forward rate agreement in which you would lock in a return between 150 and 310 days. The price of a 150-day zero coupon bond is 0.9823 and the price of 310-day zero coupon bond is 0.9634. What is the approximate yield o

elf_fu   574   6 Replies

Eka Papiashvili

Question: Get an Insurance company whether it is private or public company and define its operation

Question: Get an Insurance company whether it is private or public company and define its operation

Question:
Get an Insurance company whether it is private or public company and define its operations in detail. In addition to, give details about the procedures and strategies of the insurance company. Then, give your opinion if the theoretical

Fadi Youssef   163   1 Reply

bio_man

Which of the following statements about a priori probabilities is correct?

Which of the following statements about a priori probabilities is correct?

Which of the following statements about a priori probabilities is correct?
A) They are subjective probabilities based on ambiguity in the way probability is perceived.
B) They are subjective probabilities that may vary among individuals bec

JamesLu   282   3 Replies

Youssef Amgad

In a specific wager, Pat is paid $5.00 if the price of ABC Corp. is above $85.00. Currently, ABC ...

In a specific wager, Pat is paid $5.00 if the price of ABC Corp. is above $85.00. Currently, ABC ...

In a specific wager, Pat is paid $5.00 if the price of ABC Corp. is above $85.00. Currently, ABC Corp. price is $75.00, σ = 0.25, r = 0.04, div = 0 and the wager lasts 6 months. Pat receives nothing if the price is below $85.00. What is the value of

elf_fu   616   9 Replies

Samir Jay Kerkar