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No significance should be attached to the relative sizes of each class in this graphic. In the 1980s most large international banks bought US$ bonds issued by South American governments. Online Loans Reputable. The market reaction to earnings releases depends largely on any differences between what the market was expecting and what the company actually delivered. The effect is a form of price truncation, as yields fall and the bond's price approaches that of the call price further price increases are truncated. Online Loans Reputable. The returns are the same whether the stock price is greater or less than the options' exercise price as shown below: We have already asserted that the cash and options market must offer identical returns because of arbitrage. Credit derivatives are only likely to be successful in markets where there is perceived to be a high degree of transparency and high standard of corporate governance. Online Loans Reputable.

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