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IF - Chapter 7 - Foreign Currency Derivatives

Authored by Thao Nguyen

Business

University

Used 1+ times

IF - Chapter 7 - Foreign Currency Derivatives
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87 questions

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1.

MULTIPLE CHOICE QUESTION

15 mins • 1 pt

Financial derivatives are powerful tools that can be used by management for purposes of:

speculation.

hedging.

human resource management.

A and B above

2.

MULTIPLE CHOICE QUESTION

15 mins • 1 pt

A foreign currency ________ contract calls for the future delivery of a standard amount of foreign exchange at a fixed time, place, and price.

futures

forward

option

swap

3.

MULTIPLE CHOICE QUESTION

15 mins • 1 pt

Which of the following is NOT a contract specification for currency futures trading on an organized exchange?

size of the contract

maturity date

last trading day

All of the above are specified.

4.

MULTIPLE CHOICE QUESTION

15 mins • 1 pt

About ________ of all futures contracts are settled by physical delivery of foreign exchange between buyer and seller.

0%

5%

50%

95%

5.

MULTIPLE CHOICE QUESTION

15 mins • 1 pt

Futures contracts require that the purchaser deposit an initial sum as collateral. This deposit is called a:

collateralized deposit.

marked market sum.

margin.

settlement.

6.

MULTIPLE CHOICE QUESTION

15 mins • 1 pt

A speculator in the futures market wishing to lock in a price at which they could ________ a foreign currency will ________ a futures contract.

buy; sell

sell; buy

buy; buy

none of the above

7.

MULTIPLE CHOICE QUESTION

15 mins • 1 pt

A speculator that has ________ a futures contract has taken a ________ position.

sold; long

purchased; short

sold; short

purchased; sold

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