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Bubba plans to borrow some money and pledge securities as collateral.
Which of the following can he not use as collateral?
Suggested Answer: C
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long one put and short one call. This is a short straddle. A position that is long one put and long one call is a long straddle.
40 comments · newest first
TA
Tasia
11 months ago
I thought all treasury securities were fair game!
AN
An
11 months ago
Yup, only marketable securities qualify.
AL
Allene
12 months ago
Wait, are you sure about that?
LU
Lura
12 months ago
Totally agree, they aren't eligible!
CA
Carmen
1 year ago
You can't use Series EE bonds as collateral.
EM
Emelda
1 year ago
I definitely recall that treasury bills, notes, and bonds are usually acceptable, but I can't shake the feeling that Series EE bonds are the odd one out here.
JO
Jolene
1 year ago
I’m a bit uncertain about this one. I thought all treasury securities could be used, but maybe not the EE bonds?
GL
Glen
1 year ago
This question feels familiar; I think we practiced something similar where only certain government securities were acceptable.
AD
Adrianna
1 year ago
I think I remember that Series EE bonds are not typically used as collateral, but I'm not entirely sure.
SY
Sylvia
1 year ago
This is a good question to test our knowledge of the different types of Treasury securities and their eligibility as collateral. I'll carefully consider each option and eliminate the one that doesn't fit.
RE
Ressie
1 year ago
Okay, I've got this. Series EE bonds can't be used as collateral, but the other Treasury securities listed should all be acceptable. I'll mark that as my answer and move on to the next question.
IR
Iraida
1 year ago
Hmm, I'm a little unsure about this one. I know Treasury securities are generally considered safe collateral, but I'm not sure if there are any restrictions on the specific types that can be used. I'll need to review my notes to see if I can remember the details.
AL
Alexia
1 year ago
This seems like a straightforward question about the types of securities that can be used as collateral. I'll need to think through the different options and eliminate the ones that can't be used.
CL
Clement
1 year ago
Wait, I'm confused. I thought all Treasury securities were eligible as collateral. Why would Series EE bonds be excluded? I better double-check my understanding before answering this.
PA
Pansy
1 year ago
If I can't use my treasured childhood action figures, I'm not going to borrow any money. They're worth their weight in gold!
TA
Tamra
2 years ago
Hmm, I'm pretty sure I can use my collection of limited edition Pokemon cards as collateral. They're basically the same as cash, right?
MA
Margery
1 year ago
D) US treasury bonds
NA
Nathan
1 year ago
C) US treasury notes
SH
Shelton
1 year ago
B) US treasury bills
EM
Emogene
1 year ago
A) Series EE bonds
JE
Jeffrey
2 years ago
Series EE bonds? What is this, the 1950s? Get with the times, Alverta!
BA
Barrett
1 year ago
True, it's all about the value they represent.
HO
Holley
1 year ago
Yeah, they may be old-fashioned but they still hold value.
DI
Diego
1 year ago
Series EE bonds are still commonly used as collateral, Alverta.
ST
Stanford
1 year ago
D) US treasury bonds
MA
Marva
1 year ago
C) US treasury notes
AP
Apolonia
1 year ago
B) US treasury bills
BE
Beth
2 years ago
A) Series EE bonds
AL
Alverta
2 years ago
Wait, why can't I use my secret stash of gold bullion as collateral? That's the good stuff!
CH
Chantell
1 year ago
That makes sense. I'll stick to the options listed.
PH
Phillip
1 year ago
I think only certain types of securities are accepted as collateral.
ET
Ettie
1 year ago
But why not? It's valuable!
BR
Brock
1 year ago
You can't use gold bullion as collateral because it's not listed as an option.
LO
Loise
1 year ago
D) US treasury bonds
MA
Madalyn
1 year ago
C) US treasury notes
SA
Samira
2 years ago
B) US treasury bills
MI
Mila
2 years ago
A) Series EE bonds
SU
Sueann
2 years ago
I disagree. Bubba cannot use US treasury bonds as collateral.
FA
Fausto
2 years ago
I agree with Linn. Series EE bonds are not eligible as collateral.
LI
Linn
2 years ago
I think Bubba cannot use Series EE bonds as collateral.