FCPO and FKLI Futures Quiz

What is the underlying instrument of the Bursa Malaysia FCPO contract?

• Refined Palm Oil

• Palm Kernel Oil

• Crude Palm Oil

• Palm Fatty Acid Distillate

What is the contract size of one FCPO futures contract traded on Bursa Malaysia Derivatives?

• 10 Metric Tons

• 20 Metric Tons

• 25 Metric Tons

• 50 Metric Tons

If a palm oil refiner anticipates a rise in crude palm oil prices in the future, what hedging strategy might they employ using FCPO?

• Sell FCPO futures contracts

• Buy FCPO futures contracts

• Do nothing in the futures market

• Simultaneously buy and sell FCPO futures contracts

What is the pricing unit for the FCPO futures contract?

• US Dollars per metric ton

• Malaysian Ringgit per barrel

• Malaysian Ringgit per metric ton

• Singapore Dollars per metric ton

What is the settlement method for the FCPO futures contract?

• Cash settlement

• Physical delivery of Refined Palm Oil

• Physical delivery of Crude Palm Oil (MSPO certified)

• Settlement based on an index price

A plantation company sells 5 FCPO futures contracts at MYR 4,100 per metric ton. If the company later buys back these contracts at MYR 4,050 per metric ton, what is their total profit (ignoring brokerage fees)?

• MYR 250

• MYR 12,500

• MYR 6,250

• MYR 1,250

The final trading day for an FCPO contract is at noon on which day of the spot month?

• The last business day

• The first business day

• The 15th day

• The 30th day

Which of the following is a primary use of the Malaysian FCPO contract?

• Speculating on the price of rubber

• Hedging against fluctuations in the Malaysian Ringgit

• Price discovery for crude palm oil

• Investing in the Malaysian stock market

What does the FKLI futures contract represent?

• The price of crude oil in Malaysia

• The future value of the Malaysian Ringgit against other currencies

• The expected future performance of the top 30 companies listed on Bursa Malaysia

• Interest rates in Malaysia

What is the contract multiplier for one FKLI futures contract traded on Bursa Malaysia Derivatives?

• MYR 10 per index point

• MYR 25 per index point

• MYR 50 per index point

• MYR 100 per index point