Financial Markets and Institutions
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Course Introduction
This course offers a comprehensive examination of the structure, function, and role of financial markets and institutions in the global economy. Students will explore how various financial markets including money, bond, equity, and derivative markets operate, and analyze the vital functions they perform in channeling funds from savers to borrowers, thus supporting economic growth and development. The course also delves into the operations and management of key financial institutions such as commercial banks, investment banks, insurance companies, and mutual funds, highlighting their interaction with regulatory frameworks and their response to macroeconomic policy changes. Through case studies and current event analysis, students gain insights into risk management, financial innovation, and the impact of globalization on financial systems.
Recommended Textbook
Corporate Finance 12th Edition by Ross
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Page 2
Chapter 1: Introduction to Corporate Finance
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Sample Questions
Q1) A proxy fight occurs when:
A)the board of directors disagree on the members of the management team.
B)a group solicits voting rights to replace the board of directors.
C)a competitor offers to sell their ownership interest in the firm.
D)the firm files for bankruptcy.
E)the firm is declared insolvent.
Answer: B
Q2) The owners of a limited liability company generally prefer:
A)being taxed like a corporation.
B)having liability exposure similar to that of a sole proprietor.
C)being taxed personally on all business income.
D)having liability exposure similar to that of a general partner.
E)being taxed like a corporation with liability like a partnership.
Answer: C
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Chapter 2: Financial Statements and Cash Flow
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Q1) Thompson's Jet Skis has operating cash flow of $11,618.Depreciation is $2,345 and interest paid is $395.A net total of $485 was paid on long-term debt.The firm spent $6,180 on fixed assets and decreased net working capital by $420.What is the cash flow of the firm?
A)$5,858
B)$8,203
C)$9,228
D)$5,018
E)$7,363
Answer: A
Q2) If you sell an asset,you are most apt to receive which value for that asset?
A)Market value
B)Original cost minus accumulated depreciation
C)Historical value
D)Book value
E)Carrying value
Answer: A
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Chapter 3: Financial Statements and Cash Flow
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Sample Questions
Q1) Jessica's Boutique has cash of $218,accounts receivable of $457,accounts payable of $398,and inventory of $647.What is the value of the quick ratio?
A).55
B)1.05
C)1.70
D)1.32
E)1.52
Answer: C
Q2) If a firm bases its growth projection on the rate of sustainable growth,shows positive net income,and has a dividend payout ratio of 30 percent,then the:
A)fixed assets will have to increase at the sustainable growth rate,even if the firm is currently operating at only 78 percent of capacity.
B)number of common shares outstanding will increase at the same rate of growth.
C)debt-equity ratio will have to increase.
D)debt-equity ratio will remain constant while retained earnings increase.
E)fixed assets,the debt-equity ratio,and number of common shares outstanding will all increase.
Answer: D
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Page 5
Chapter 4: Discounted Cash Flow Valuation
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Sample Questions
Q1) Assume mortgage rates increase to 7.5 percent and you borrow $329,000 for 30 years to purchase a house.What will your loan balance be at the end of the first 15 years of monthly payments?
A)$238,854.07
B)$194,311.64
C)$248,153.73
D)$207,308.09
E)$192,938.72
Q2) Beatrice invests $1,000 in an account that pays 5 percent simple interest.How much more could she have earned over a period of 10 years if the interest had compounded annually?
A)$132.45
B)$135.97
C)$128.89
D)$117.09
E)$121.67
Q3) What is the difference between an ordinary annuity and an annuity due? What value can be used to quickly convert both the present value and the future value of an ordinary annuity into annuity due values?
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Page 6
Chapter 5: Net Present Value and Other Investment Rules
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Q1) An investment with an initial cost of $15,000 produces cash flows of $5,000 annually for 5 years.At a discount rate of 10 percent,what is the discounted payback period?
A)3.00 years
B)3.21 years
C)3.75 years
D)3.89 years
E)Never
Q2) Graham and Harvey (2001)found that ________ were the two most popular capital budgeting methods.
A)IRR and payback
B)IRR and NPV
C)NPV and PI
D)IRR and modified IRR
E)discounted payback and NPV
Q3) Most financial experts will agree that net present value is the best capital budgeting method.However,even NPV can be unreliable when projecting project results.Explain why this is so.
Q4) Explain the differences and similarities between net present value (NPV)and the profitability index (PI).
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Chapter 6: Making Capital Investment Decisions
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Sample Questions
Q1) The equivalent annual cost method is most useful in determining:
A)the annual operating cost of an idle machine that is currently owned by a firm.
B)the tax shield benefits of depreciation given the purchase of new assets for a project.
C)operating cash flows for cost-cutting projects of equal duration.
D)which one of two machines to acquire given equal machine lives but unequal machine costs.
E)which one of two machines to purchase when the machines are mutually exclusive,have differing lives,and will be replaced.
Q2) The initial cost of one customized machine is $675,000 with an annual operating cost of $14,800,and a life of 4 years.The machine will be worthless and replaced at the end of its life.What is the equivalent annual cost of this machine if the required rate of return is 14.5 percent and we ignore taxes?
A)$249,797.41
B)$240,008.02
C)$248,841.99
D)$247,647.78
E)$251,610.29
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Chapter 7: Risk Analysis, real Options, and Capital Budgeting
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Sample Questions
Q1) A new project has estimated annual sales of 12,000 units,± 3 percent; variable costs per unit of $11.24,± 2 percent; annual fixed costs of $38,290,± 2 percent; and a sales price of $19.65 per unit,± 4 percent.The annual depreciation is $21,400 and the tax rate is 21 percent.What are the annual earnings before interest and taxes under the optimistic scenario?
A)$52,694.40
B)$64,854.40
C)$57,516.89
D)$54,048.91
E)$61,940.08
Q2) Monte Carlo simulation is:
A)the method of analysis most widely used by executives.
B)a very simple formula.
C)more complex than sensitivity or scenario analysis.
D)the oldest capital budgeting technique.
E)most commonly applied to small,short-term projects.
Q3) What is the benefit of scenario analysis if it does not produce a definitive accept or reject decision for a proposed project?
Q4) Discuss some potential shortcomings of the standard decision tree analysis.
Page 9
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Chapter 8: Interest Rates and Bond Valuation
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Q1) The principal amount of a bond that is repaid at the end of the loan term is called the bond's:
A)coupon.
B)face value.
C)maturity.
D)yield to maturity.
E)coupon rate.
Q2) Otto Enterprises has a bond issue outstanding with a coupon of 8 percent that matures in 15 years.The bond is currently priced at $923.60 and has a par value of $1,000.Interest is paid semiannually.What is the yield to maturity?
A)8.67 percent
B)9.93 percent
C)9.16 percent
D)8.93 percent
E)8.45 percent
Q3) Normally,the Treasury yield curve is upward-sloping.Explain the conditions required for a downward-sloping yield curve to exist.
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10
Chapter 9: Stock Valuation
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Q1) The rate at which a stock's price is expected to appreciate (or depreciate)is called the ________ yield.
A)current
B)total
C)dividend
D)capital gains
E)earnings
Q2) The differential growth model of stock valuation:
A)makes allowance for one change in the discount rate.
B)uses D<sub>T</sub> <sub>+ 1</sub> as the dividend amount throughout the formula.
C)requires g<sub>2</sub> to be less than the discount rate.
D)assumes the second growth rate will be zero.
E)assumes the first growth rate will be zero.
Q3) A forward PE is generally based on the projected:
A)average earnings for the next five years.
B)average earnings for the next three years.
C)earnings for the upcoming quarter.
D)earnings for the next year.
E)stock price in one year.
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Page 11
Chapter 10: Lessons From Market History
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Q1) A stock had returns of 16 percent,4 percent, 22 percent,15 percent,and 2 percent for the past five years.What is the variance of these returns?
A).01997
B).02037
C).02402
D).01869
E).02340
Q2) Over the period of 1926 to 2017,small-company stocks had an average return of ________ percent.
A)14.8
B)15.2
C)17.3
D)14.6
E)16.5
Q3) The standard deviation for a set of stock returns can be calculated as the:
A)positive square root of the average return.
B)average squared difference between the actual return and the average return.
C)positive square root of the variance.
D)average return divided by N minus one,where N is the number of returns.
E)variance squared.
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Chapter 11: Return, risk, and the Capital Asset Pricing Model
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Sample Questions
Q1) The expected return on HiLo stock is 14.08 percent while the expected return on the market is 11.5 percent.The beta of HiLo is 1.26.What is the risk-free rate of return?
A).41 percent
B)2.01 percent
C).69 percent
D)1.58 percent
E)1.62 percent
Q2) If a stock portfolio is well diversified,then the portfolio variance:
A)will equal the variance of the most volatile stock in the portfolio.
B)may be less than the variance of the least risky stock in the portfolio.
C)must be equal to or greater than the variance of the least risky stock in the portfolio.
D)will be a weighted average of the variances of the individual securities in the portfolio.
E)will be an arithmetic average of the variances of the individual securities in the portfolio.
Q3) Explain in words what beta is and why it is an important tool of security valuation.
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Chapter 12: An Alternative View of Risk and Return: the Arbitrage Pricing Theory
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Q1) If an investor plans to add a stock to a well-diversified portfolio,the investor should first consider the ________ risks of that additional stock.
A)expected total
B)historical total
C)systematic
D)idiosyncratic
E)firm-specific
Q2) A security held in a large,well-diversified portfolio that has a beta of zero in a one-factor model will have an actual return:
A)of zero.
B)closely equal to the market risk premium.
C)closely equal to the expected return.
D)that is positive and less than the risk-free rate.
E)that is less than the risk-free rate and can be negative.
Q3) Explain the concept of a benchmark and why benchmarks provide value when evaluating the performance of a security or portfolio.
Q4) Verbally describe a graph that illustrates the one-factor model.
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Chapter 13: Risk, cost of Capital, and Valuation
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Q1) Explain a)the factors that determine a security's beta and b)how asset beta relates to equity beta.
Q2) If a firm increases its use of both operating and financial leverage,then you should expect the firm's:
A)asset beta to exceed its equity beta.
B)beta of debt to exceed 1.0.
C)beta to remain constant as the increased operating leverage will offset the increased financial leverage.
D)equity beta to increase.
E)debt beta to exceed its equity beta.
Q3) On-line Text Co.has four new text publishing products that it is considering.The projects are of equal risk with a beta of 1.6.The risk-free rate is 4.2 percent and the market rate is expected to be 12.3 percent.The projects and their expected internal rates of return are: W = 14.4 percent; X = 18 percent,Y = 16.4 percent; and Z = 17.2 percent.Which projects should be accepted? Justify your acceptance decision.
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Chapter 14: Efficient Capital Markets and Behavioral Challenges
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Q1) An investor discovers that stock prices change drastically as a result of certain events.This finding is a violation of:
A)the moderate form of the efficient market hypothesis.
B)the semistrong form of the efficient market hypothesis.
C)the strong form of the efficient market hypothesis.
D)the weak form of the efficient market hypothesis.
E)no form of market efficiency but rather an indication of an efficient market.
Q2) The hypothesis that market prices reflect all publicly available information is called ________ form efficiency.
A)open
B)strong
C)semistrong
D)weak
E)stable
Q3) Define the three forms of market efficiency.
Q4) Explain why in an efficient market all investments have an expected NPV of zero.
Q5) Suppose your cousin invests in the stock market and doubles her money in a single year while the market,on average,earned a return of only 15 percent.Is your cousin's performance a violation of market efficiency?
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Chapter 15: Long-Term Financing
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Sample Questions
Q1) A classified board is one which has:
A)representation from various classes of stock.
B)terms that expire at different times.
C)both employee and non-employee directors.
D)directors elected solely by one class of shareholders.
E)directors that have been assigned differing numbers of votes per seat.
Q2) Sinking fund arrangements are least apt to contain which one of these requirements?
A)A deferred provision for the first few years
B)A one-time repayment of the entire principal and interest at maturity
C)A balloon payment
D)Equal payments of principal over the life of the bond
E)Sufficient payments over the bonds' life to retire the entire bond issue
Q3) Identify three key duties of a bond trustee.
Q4) Identify the general rights that are commonly granted to common stock shareholders.
Q5) Explain the main differences between debt and equity.
Q6) Bond issuers will call bonds when it is favorable for them to do so.The benefit the issuer receives is a cost to the bondholders.Explain some of the ways in which bondholders are protected from calls.
Page 17
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Chapter 16: Capital Structure: Basic Concepts
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Q1) A firm has a debt-equity ratio of .64,a pretax cost of debt of 8.5 percent,and a required return on assets of 12.6 percent.What is the cost of equity if you ignore taxes?
A)8.06 percent
B)8.55 percent
C)11.12 percent
D)15.22 percent
E)16.38 percent
Q2) The increase in risk to shareholders when financial leverage is introduced is best evidenced by:
A)higher EPS as EBIT increases.
B)a higher variability of EPS with debt than with all-equity financing.
C)increased use of homemade leverage.
D)the increase in taxes.
E)decreasing earnings as EBIT increases.
Q3) In each of the theories of capital structure,the cost of equity rises as the amount of debt increases.So why don't financial managers use as little debt as possible to keep the cost of equity down? After all,isn't the goal of the firm to maximize share value and doesn't a lower discount rate applied to the firm's cash flows increase the present value of those cash flows?
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Page 18
Chapter 17: Capital Structure: Limits to the Use of Debt
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Q1) Studies have found that firms with large investments in tangible assets tend to have:
A)higher financial distress costs than firms with comparable investments in intangible assets.
B)zero debt.
C)higher target debt-equity ratios than firms that primarily invest in intangible assets.
D)the highest financial distress costs of any firm per dollar of debt.
E)the same capital structure as firms that specialize in intangible asset investments.
Q2) Describe some of the sources of business risk and financial risk.Do financial decision makers have the ability to "trade off" one type of risk for another type of risk?
Q3) Many firms base their actual capital structure decisions on which two factors?
A)Inflation and tax rates
B)Interest and tax rates
C)Need for financial slack and current interest rates
D)Need for financial slack and industry averages
E)Types of assets held and current interest rates
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Chapter 18: Valuation and Capital Budgeting for the Levered Firm
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Q1) Winston's has a beta of 1.08 and a cost of debt of 8 percent.The current risk-free rate is 3.2 percent and the market rate of return is 11.47 percent.What is the company's cost of equity capital?
A)8.93 percent
B)16.93 percent
C)12.13 percent
D)20.13 percent
E)16.13 percent
Q2) Flotation costs:
A)are amortized using a declining-balance method over the life of the loan.
B)are amortized using the straight-line method over the life of the loan.
C)are deducted as a business expense in the year incurred.
D)cannot be deducted as a business expense.
E)are deducted as a business expense at the time the loan is repaid in full.
Q3) The cost of equity for an all-equity firm is designated as:
A)R<sub>s.</sub>
B)R<sub>D.</sub>
C)R<sub>S</sub>(1 t<sub>C</sub>)<sub>.</sub>
D)R<sub>0.</sub>
E)R<sub>0</sub>(1 t<sub>C</sub>).
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Chapter 19: Dividends and Other Payouts
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Q1) The Tinslow Co.has 125,000 shares of stock outstanding at a market price of $93 a share.The company has just announced a 5-for-2 stock split.How many shares of stock will be outstanding after the split?
A)50,000
B)75,000
C)156,250
D)175,000
E)312,500
Q2) A cash payment made by a firm to its owners when some of the firm's assets are sold off is called a:
A)liquidating dividend.
B)regular cash dividend.
C)special dividend.
D)extra cash dividend.
E)share repurchase.
Q3) Explain what a targeted repurchase is and why a firm might do a repurchase of this type.
Q4) It has been shown that in the absence of taxes and other market imperfections firm value will be unaffected by dividend policy.Explain the logic behind this conclusion.
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Chapter 20: Raising Capital
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Q1) Debt capacity is often offered as a reason for a stock price to decline when additional equity securities are issued.The primary reason that supports this argument is that:
A)the high issue costs of a debt offering must be paid by the shareholders.
B)an additional equity issue reduces the debt capacity of a firm.
C)management feels the probability of default has risen,which limits the firm's debt capacity and thus an equity issue is necessary.
D)unless additional debt is issued in the future,stock dividends will tend to decline after the new securities are issued.
E)additional equity is only issued when a firm cannot meet its current debt obligations,thereby signaling the firm is on the verge of bankruptcy.
Q2) Dilution commonly refers to the:
A)increase in stock value due to wider ownership of stock.
B)loss in existing shareholder's value.
C)loss in new shareholder's equity.
D)splitting of a single share of stock into multiple shares.
E)issuance of debt to repurchase shares.
Q3) Discuss the stages of venture capital financing,defining each in detail.
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Page 22
Chapter 21: Leasing
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Q1) Explain the characteristics of both operating and financial leases.
Q2) Discuss some of the pros and cons of leasing.
Q3) When a lease must be recorded on the balance to meet FAS 13,the asset amount is set equal to the:
A)amount of the lease payments due within the next 12 months.
B)present value of the lease payments.
C)amount of the lease payments due within the current fiscal year.
D)present value of the lease payments due within the next 12 months.
E)total sum of all the remaining lease payments.
Q4) Which of these are offered as key considerations in the lease versus purchase decision according to the research findings of Smith and Wakeman?
A)Price discrimination opportunities and debt displacement options
B)Cash flows and sensitivity to use and maintenance decisions.
C)Attracting clients with low prices and debt displacement
D)Cash flows and debt displacement
E)Price discrimination opportunities and sensitivity to use and maintenance decisions
Q5) Explain the term "bargain purchase price option" and identify at least one application of that term.
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Chapter 22: Options and Corporate Finance
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Q1) The value of an option if it were to immediately expire,that is,its lower pricing bound,is called an option's ________ value.
A)strike
B)market
C)volatility
D)time
E)intrinsic
Q2) If you are the owner of a European call option,you:
A)are obligated to buy the specified assets prior to the option's expiration.
B)have the right to sell the specified assets at the set price at any time up to and including on the expiration date.
C)have the right to buy the specified assets at the set price only on the expiration date.
D)are obligated to sell the specified assets at the set price if the option is exercised.
E)have the right to buy the specified assets at the set price at any time prior to the option's expiration.
Q3) How do options apply to capital budgeting? Explain and provide an example.
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Chapter 23: Options and Corporate Finance: Extensions and Applications
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Q1) I.M.Greedy has been granted options on 500,000 shares.The stock is currently trading at $48 a share and the options are at the money.The standard deviation of returns averages 31 percent.The options mature in 5 years and the risk-free rate is 3.68 percent.What is the value of e<sup> </sup><sup>Rt</sup>?
A).6087
B).7087
C).7952
D).8476
E).8319
Q2) Which one of the following is not included as an input for the Black-Scholes option pricing model?
A)Standard deviation
B)Time to maturity
C)Exercise price
D)Par value
E)Continuously compounded interest rate
Q3) Why would a company pay an executive in options as opposed to salary?
Q4) Why is straight NPV analysis flawed as compared to models that include option pricing in the analysis?
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Chapter 24: Warrants and Convertibles
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Q1) Kida Consultants has 100,000 shares of stock outstanding.The firm's value net of debt is $2 million.Kida has 1,000 warrants outstanding with an exercise price of $18,where each warrant entitles the holder to purchase one share of stock.Calculate the gain from exercising a single warrant.
A)$1.87
B)$1.72
C)$1.45
D)$.38
E)$1.98
Q2) Assume a bond had a conversion price of $40 and a conversion ratio of 25.What would be the conversion ratio and conversion price if the bond issuer declared a stock split of 4-for-1?
A)2.50; $400
B)100; $10
C)25; $40
D)6.25; $160
E)100; $25
Q3) Explain how a noncallable convertible bond's value is determined.
Q4) Why are warrants and convertibles issued?
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Chapter 25: Derivatives and Hedging Risk
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Q1) A potential disadvantage of forward contracts versus futures contracts is:
A)the extra liquidity required to cover the potential outflows that can occur prior to delivery.
B)the higher incentive for a particular party to default.
C)that the buyers and sellers don't know each other and never meet.
D)the obligatory requirements rather than the optional opportunities.
E)the increased ability to close out a position prior to expiration.
Q2) You hold a futures contract to take delivery of U.S.Treasury bonds in 6 months.If the entire term structure of interest rates shifts down over the 6-month period,the value of the forward contract will have ________ the date of delivery.
A)increased in value by B)decreased in value by C)the same value as when obtained on D)either decreased in value or have a zero value by E)zero value by
Q3) Identify several of the differences between a forward contract and a futures contract.
Q4) Explain why credit default swaps act like an insurance policy.
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Chapter 26: Short-Term Finance and Planning
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Q1) Given a flexible financing policy,a growing firm generally has a permanent requirement for:
A)both current and long-term assets.
B)long-term assets only.
C)short-term debt.
D)both short- and long-term debt.
E)current assets and short-term debt.
Q2) A prearranged,short-term bank loan up to a specified limit,made on a formal or informal basis,is called a:
A)letter of credit.
B)cleanup loan.
C)compensating balance.
D)line of credit.
E)roll-over.
Q3) In working capital management,there are some actions that increase or decrease cash.What are some of the items that increase and decrease the cash account,respectively?
Q4) List and describe three basic types of secured inventory loans.What are the advantages and disadvantages of each type of loan?
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Chapter 27: Cash Management
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Q1) Mail float; time that elapses while a payment is in the mail system
Q2) On an average day,DDL Enterprises writes checks totalling $1,500.These checks take an average of 5 days to clear.On an average day,DDL receives checks totalling $1,700 which take 4 days to clear.The cost of debt is 7.5 percent.What is the firm's disbursement float?
A) $700
B) $6,800
C)$700
D)$7,500
E)$6,800
Q3) Availability float; time between the depositing of a check and the time when the funds become available for use
Disbursement float includes:
Q4) Processing float; time it takes the receiving firm to process incoming mail,prepare the bank deposit,and take the deposit to the bank
Q5) Explain why money market preferred stock appeals to corporations.
Q6) Processing float
Q7) Availability float
Q8) Mail float
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Chapter 28: Credit and Inventory Management
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Q1) Jensen's Boat Works total costs of holding inventory is $8,400 when its order sizes are optimized.If the firm places 46 orders a year,what is the fixed cost per order?
A)$106.87
B)$101.15
C)$91.30
D)$87.62
E)$79.08
Q2) Lemoyne mailed an invoice today in the amount of $1,268 with terms of 2/7 net 30.What is the cost of credit to the customer if they pay on the last day of the credit period? Assume a 365-day year.
A)41.02 percent
B)39.62 percent
C)37.80 percent
D)37.56 percent
E)39.40 percent
Q3) Explain how inventory is managed under an ABC inventory system.
Q4) Explain the purpose of a safety stock and how this relates to reorder points.
Q5) Identify several factors that affect the length of the credit period and provide an explanation of each.
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Chapter 29: Mergers,acquisitions,and Divestitures
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Q1) Sometimes the management of a target firm fights a takeover attempt even when that attempt appears to be in the best interest of the shareholders.Why would management take this stance?
Q2) Firm A is acquiring Firm T for $22,500 in cash.Firm A has 2,300 shares of stock outstanding at a market value of $26 a share.Firm T has 1,200 shares of stock outstanding at a market price of $17 a share.Neither firm has any debt.The net present value of the acquisition is $1,900.What is the price per share of Firm A after the acquisition?
A)$26.00
B)$28.25
C)$26.83
D)$25.17
E)$26.50
Q3) In a merger the:
A)legal status of both the acquiring firm and the target firm is terminated.
B)acquiring firm retains its name and legal status.
C)acquiring firm acquires the assets but not the liabilities of the target firm.
D)stockholders of the target firm have little,if any,say as to whether or not the merger occurs.
E)target firm always continues to exist as a subsidiary of the acquiring firm.
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Chapter 30: Financial Distress
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Q1) Stock-based insolvency is a(n):
A)income statement measurement.
B)balance sheet measurement.
C)a book value measurement only.
D)both an income statement measurement and a book value measurement.
E)both a balance sheet and a book value measurement.
Q2) There are a number of ways firms can deal with financial distress.Identify at least 5 of these.
Q3) Altman's revised model for private firms and non-manufacturers predicts bankruptcy when the computed value is:
A)negative.
B)less than 1.23.
C)greater than 1.0 and less than 1.23.
D)greater than 2.50.
E)greater than 2.90.
Q4) Why would a firm's creditors voluntarily agree to a prepackaged reorganization that offers those creditors less than they are owed?
Q5) Financial distress may benefit firms if it prompts them to "restructure their assets".Explain what this means and how it can be beneficial.
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Chapter 31: International Corporate Finance
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Q1) Money deposited in a financial center outside the country whose currency is involved is called:
A)a foreign depository receipt.
B)an international exchange certificate.
C)an American Depository Receipt.
D)Eurocurrency.
E)Eurodollars.
Q2) How many euros can you get for $2,500 if the USD equivalent is 1.2195?
A) 2,147.08
B) 2,050.02
C) 2,309.11
D) 3,048.75
E) 2,921.00
Q3) Absolute purchasing power parity is most apt to exist for:
A)a 4-door Ford vehicle.
B)a loaf of white bread.
C)a 2-bedroom home.
D)a new watch.
E)an ounce of silver.
Q4) What is triangle arbitrage?
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