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Topic 7 Derivative

Authored by Wil Martens

Business

KG - University

Used 16+ times

Topic 7 Derivative
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9 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The type of contract which involves the future exchange of assets at a specified price is classified as

Futures contract

Present contract

Forward Contract

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The type of unit which guarantees that all the buying and selling will be made by traders of exchange is called

Trading House

Guarantee House

Clearing House

Professional House

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

An example of derivative securities is

Return back security

Mortgage back security

Cash flow backed security

Interest Back Security

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is false?

Futures contracts are more liquid than forward contracts.

Futures contracts are marked to market

Futures contracts trade on a financial exchange.

Futures contracts allow fewer delivery options than forward contracts.

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Using futures contracts to transfer price risk is called:

Diversifying

Hedging

Speculating

Arbitrage

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following has the right to sell an asset at a predetermined price?

Put writer

Call buyer

Cal Writer

Put Buyer

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is potentially obligated to sell an asset at a predetermined price?

Put writer

Call Buyer

Put Buyer

Call Writer

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