2014 April

Discussion in 'CB1' started by Robert, Aug 9, 2019.

  1. Robert

    Robert Very Active Member

    2014 April Question 3
    Can I get the meaning of subordinated debt ?

    2014 April Question 4
    Can I get a underlying explanation on this question?

    2014 April Question 5
    Can I know why The Australian company will receive a partial refund of its margin payment from the futures clearing house. ?
     
  2. Lynn Birchall

    Lynn Birchall ActEd Tutor Staff Member

    Hi

    Q3 : Subordinated debt is described in Section 1.4 of Chapter 4. Is there something in particular that's not clear?
    Q4 : Convertible loan stock is described in Chapter 4 too, so that's my suggested starting point for an explanation. Again, it will be easier for someone to respond to your query if you can narrow down the problem perhaps.
    Q5 : US dollar strengthening would be a source of profit for the Australian company. The nature of futures is that losses/profits are settled/received daily via the margin payments (rather than waiting until the end of the futures contract).
     

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