Lowest priority in a bankruptcy proceeding

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Reference no: EM131316656

1. Which one of the following types of securities has the lowest priority in a bankruptcy proceeding?

Convertible bond, Senior debt, Common stock, Preferred stock, Straight bond

2. The delta of a derivatives portfolio dependent on the S&P 500 index is -2,000. The S&P 500 index is currently 1,000. Estimate what happens to the value of the portfolio when the index increases to 1,006.

Reference no: EM131316656

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