A financial analyst is trying to distinguish credit risk from market risk. A $100 loan collateralized with $200 in stock has limited ___, but an uncollateralized obligation issued by a large bank to pay an amount linked to the long-term performance of the Nikkei 225 Index that measures the performance of the leading Japanese stocks on the Tokyo Stock Exchange likely has more ___ than ___.
Changes to which one of the following four factors would typically not increase the cost of credit?
Which one of the following four global markets for financial assets or instruments is widely believed to be the most liquid?
Which one of the following four statements does identify correctly the relationship between the value of an option and perceived exchange rate volatility?