Trading Brexit Uncertainty

Trading Brexit Uncertainty

Assessment

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Business

University

Hard

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The video discusses a significant trade involving over $2,000,000 in put options on UK stocks, betting on their decline. The trade remains active, with contracts expiring in February. Additionally, the video explores the impact of Brexit on the British pound, highlighting concerns over recent gains and the rise in currency hedging products. Record inflows into these products are noted, driven by the uncertainty surrounding the pound's future.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What type of financial instrument was used in the major trade discussed in the video?

Put options

Stocks

Call options

Futures contracts

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the expiration month for the put options discussed in the major trade?

January

February

March

April

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main concern of sources regarding the British pound in the context of Brexit?

The pound's historical value

The pound's recent gains

The pound's exchange rate with the Euro

The pound's stability

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which financial product is seeing record inflows due to the strengthening pound?

Real estate investment trusts

Government bonds

Currency hedged funds

Cryptocurrencies

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the potential impact of a strengthening pound on UK investors looking to invest globally?

It stabilizes their portfolio

It has no effect

It boosts their returns

It hurts their investment