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Chapter 5 Derivatives Market

Authored by Maryam Othman

Business, Social Studies

University

25 Questions

Used 317+ times

Chapter 5 Derivatives Market
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1.

MULTIPLE CHOICE QUESTION

5 mins • 1 pt

Which of the following is NOT a derivative

Single Stock Futures (SSFs)

Swap

Crude Palm Oil

Put Options

2.

MULTIPLE CHOICE QUESTION

5 mins • 1 pt

Media Image

Derivatives are usually traded at

Over-the-counter only

The exchange and over-the-counter

The exchange only

Bursa Malaysia Derivatives Berhad

3.

MULTIPLE CHOICE QUESTION

5 mins • 1 pt

What kind of settlement usually applied if the investors are trading the derivatives for speculation purposes?

Physical settlement

Cash settlement

Hedging

Return

4.

MULTIPLE CHOICE QUESTION

5 mins • 1 pt

Which of the following is NOT a purpose for which derivatives may be used?

Gain profit

Minimize risk

Hedging

Security issuance

5.

MULTIPLE CHOICE QUESTION

5 mins • 1 pt

Which one is NOT true about speculation

Low risk

To gain profit

cash settlement

To manage risk

6.

MULTIPLE CHOICE QUESTION

5 mins • 1 pt

Derivatives help to manage possible future risks especially against the fluctuation of price risk. This is

Speculation

Arbitraging

Hedging

None is correct

7.

MULTIPLE CHOICE QUESTION

5 mins • 1 pt

Media Image

A call option is a right to

force another party to buy the underlying security.

repurchase a previously sold underlying security.

sell the underlying security.

buy the underlying security.

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