13.A(n) is a contract that obliges the guarantor to make the promised payment on a loan if the borrower fails to do so. (a)exclusion (b)loan guarantee (c)copayment (d)interest-rate cap Answer:(b) 14.An interest rate insurance policy which guarantees a maximum interest rate is known as,or takes the form of (a)loan guarantee (b)interest-rate guarantee (c)interest-rate floor (d)interest-rate cap Answer:(d) 15. protect against losses from a decline in stock prices. (a)Expiration options (b)Call options (c)Put options (d)Strike options Answer:(c) 16.The is the fixed price specified in an option contract. (a)strike price (b)exercise price (c)spot price (d)a and b Answer:(d) 17.A(n) is the right,but not the obligation,to buy or sell something at an exercise price in the future. (a)forward contract (b)option (c)swap (d)deductible Answer:(b) 11-411-4 13. A(n) ________ is a contract that obliges the guarantor to make the promised payment on a loan if the borrower fails to do so. (a) exclusion (b) loan guarantee (c) copayment (d) interest-rate cap Answer: (b) 14. An interest rate insurance policy which guarantees a maximum interest rate is known as, or takes the form of ________. (a) loan guarantee (b) interest-rate guarantee (c) interest-rate floor (d) interest-rate cap Answer: (d) 15. ________ protect against losses from a decline in stock prices. (a) Expiration options (b) Call options (c) Put options (d) Strike options Answer: (c) 16. The ________ is the fixed price specified in an option contract. (a) strike price (b) exercise price (c) spot price (d) a and b Answer: (d) 17. A(n) ________ is the right, but not the obligation, to buy or sell something at an exercise price in the future. (a) forward contract (b) option (c) swap (d) deductible Answer: (b)