Please read through this unit's list of terms and conceptsprovided in the Key Terms module of this unit. You should look forthese terms as you read the assigned textbook chapters. The termsand concepts are important for understanding the material. Do notlook at each word as a separate entity that stands alone. Try tounderstand it in the context of the chapters' content. You shouldwrite out your own definitions for each term.

For this unit, please submit five of these termdefinitions for grading. A few words of caution: writingout the definitions is an important exercise, even the ones youdon't have to submit. For this assignment do not simply copy aone-sentence definition of the term. Instead, provide a definitionwhich relates to context and/or examples to best demonstrate yourunderstanding.

Money markets Negotiable CD
Bond equivalent yield
Discount yield
Opportunity cost
Liquidity
Treasury Bills
LIBOR
Default risk free
Banker's acceptance
Repo and reverse repurchase agreement
Eurodollar deposits
Term vs serial bonds
Mortgage bonds
Convertible and callable bonds
Call premium
Second mortgages
Lien
Syndicate
Originating house
Preemptive rights
Red herring proxy
Secondary stock markets
Net long (short) in a currency
Open position
Safe haven
Purchasing power parity
Interest rate parity theorem (IRPT)
Open interest
Option
American option
European option
Call option
Put option
Intrinsic value of an option
Time value of an option
Foreign exchange rates
Dollarization
Foreign exchange risk
Currency appreciation
Derivative security
Derivative security markets
Spot contract
Forward contract
Futures contract
Marked to market
Initial margin
Maintenance margin
Floor broker