Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

AIG was effectively the largest unfunded investor in the super-senior tranches of the Abacus 2004 deal.This means that AIG:

A) Effectively would sell the underlying subprime collateral as the mortgages began to default.

B) Owned all of the underlying subprime collateral of the Abacus CDO

C) Was committed to buy defaulted collateral from the CDO to make the short investors whole.

D) Would have to pay the short investors annual premiums

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M940985

Have any Question? 


Related Questions in Basic Finance

Define a currency option related terms and pricing

Define a currency option, related terms, and pricing factors.

The following appeared in an article in the wall street

The following appeared in an article in the Wall Street Journal: Credit Suisse Group equity-derivatives strategist Sveinn Palsson suggests a "strangle" in the company's options. The strategy involves selling a call and a ...

Many grocery stores and large retailers such as wal-mart

Many grocery stores and large retailers such as Wal-Mart and K-Mart have installed self checkout systems so shoppers can scan their own items and cash out themselves. How do customers like this service and how often do t ...

1 what general rule can be developed concerning maximum

1. What general rule can be developed concerning maximum values and compounding intervals within a year? 2. What does the time value of money (TVM) mean? 3. How does discounting, as used in determining present value, rel ...

Principles of financecorporations often use different costs

Principles of Finance Corporations often use different costs of capital for different operating divisions. Using an example, calculate the weighted cost of capital (WACC). What are some potential issues in using varying ...

What is the purpose of a performance attribution model in

What is the purpose of a performance attribution model? In terms of the price-to-book (P/B) ratio, why are value stocks generally considered those with low P/B ratios? Comment on the following statements: a. "All one nee ...

Compare and differentiate between the financial and

Compare and differentiate between the financial and investment DECISIONS MAKING?

The suboptimal glass company uses a process of capital

The Suboptimal Glass Company uses a process of capital rationing in its decision making. The firm's cost of capital is 10 percent. It will only invest $77,000 this year. It has determined the internal rate of return for ...

Question 1find the simple interest on a 400 investment made

Question 1 Find the simple interest on a $400 investment made for 5 years at an interest rate of 7%/year. What is the accumulated amount? A. The simple interest is $140, the accumulated amount is $540. B. The simple inte ...

1 what kinds of things do volunteer organizations provide

1. What kinds of things do volunteer organizations provide for victims in the aftermath of a disaster? 2. What is the Incident Command System, and why was it originally developed? 3. What are the five major management sy ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro