AAII - DI I

A sample of derivative is as below ...

• Purchasing a commodity if we have the sufficient money

• Purchasing a commodity if the price decrease

• Purchasing a commodity by locking its price to third party

• Purchasing a commodity when its supplies are overwhelmed

What are not protected by entering into derivative contract from below option?

• Statement of cash flow

• Earnings

• Net income

• Market value

Derivative contracts provide the .... with the ... to participate in some or all of the price changes of another underlying value of measure.

• holder; obligation

• holder; right

• writer; obligation

• writer; right

If the spot rate is Rp 11.000 and forward rate is Rp 12.000, we call this situation as having ...

• discount by Rp 1,000

• discount by Rp 2,000

• premium by Rp 1,000

• premium by Rp 2,000

The difference between forward and future contract is as follow ...

• Forward is customized, while future contract is standardized

• Forward is standardized, while future contract is customized

• Forward contract requires margin deposit, while future does not require the opening of margin deposit

• Forward is traded on an exchange, while future is through dealer