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Complete_Quiz_Energy_Trading

Total questions: 45

Worksheet time: 23mins

Name
Class
Date
1.

What is not a commodity?

a)

Metals

b)

Agricultural products

c)

Android Smartphones

d)

Energy

2.

Which of the following is NOT a reason that Windows Computers are not a commodity?

a)

Producer is relevant

b)

Non-standardized products

c)

No market is available

d)

Buyer is relevant

3.

Which of the following is not a job role in energy trading?

a)

Portfolio Manager

b)

Dispatcher

c)

Analyst

d)

Angel Investor

4.

What is NOT part of the analysts job?

a)

Predict fundamental changes

b)

Compare market outcomes with external events

c)

Find trends

d)

Speculate on unpredictable market situations

5.

Which of the following is not a Tie-Breaker?

a)

Order Imbalance

b)

Market Direction

c)

Continuous Market Price

d)

Number of buyers/sellers

6.

Which of the following values has little to no indication for the order book?

a)

Highest Bid Price

b)

Indicative Equilibrium Price

c)

Lowest Ask Price

d)

Mid-Price

7.

Consider the following table, which is the Indicative Equilibrium Price?

a)

3,22

b)

3,21

c)

3,2

d)

3,19

8.

In a continuous trading situation, which is the first trade happening?

a)

16:05 F -> B

b)

16:03 F -> A

c)

16:06 F -> A

d)

16:05 F -> G

9.

Which of the following is NOT an important characteristic of a grid?

a)

Natural Monopoly

b)

Geographically fixed

c)

Specific for one type of commodity

d)

Needs to be strictly balanced in all cases

10.

Which of the following is NOT an important characteristic of electricity?

a)

Grid Bound

b)

Fungible

c)

Not Storable

d)

Producer

11.

What is voltage of a common distribution grid in Germany?

a)

230/400V

b)

220 to 380kV

c)

60 to 110kV

d)

6 to 30kV

12.

Which one is NOT an energy unit?

a)

Joule

b)

TOE

c)

kWh

d)

kW

13.

Which of the following is NOT an energy unit?

a)

kWhh\frac{kWh}{h}  

b)

BTU

c)

Joule

d)

TOE

14.

Where can a fuel shift mostly be expected in reality?

a)

Nuclear/Wind

b)

Coal/Gas

c)

Hydroelectricity/

Nuclear

d)

Wind/Solar

15.

Which effect does an increase in efficiency have on the marginal cost structure?

a)

Cost increases

b)

Is independent

c)

Cost decreases

d)

Depends on the input

16.

How is the merit order curve built? (from left to right)

a)

From cheapest to most expensive

b)

From most expensive to cheapest

c)

From highest to lowest capacity

d)

From lowest to highest capacity

17.

How do increased emissions certificate prices usually influence the market?

a)

Lower average emissions, higher average marginal cost

b)

Higher average emissions, lower average marginal cost

c)

Lower average emissions, same price

d)

Same average emissions, higher prices

18.

Which of the following does NOT influence the marginal cost structure in energy production?

a)

Efficiency

b)

Certificate Costs

c)

Fuel Costs

d)

Investment

19.

Which of the following is NOT a power unit?

a)

Js\frac{J}{s}  

b)

W

c)

kWh

d)

kWhh\frac{kWh}{h}  

20.

What is NOT a goal of emission trading?

a)

Decrease CO2 emissions

b)

Account for marginal social costs

c)

Efficiently allocate abatement

d)

Make energy production more costly in general

21.

How are electricity prices chosen?

a)

Marginal costing for each producer

b)

Merit order curve

c)

Average pricing over the market

d)

Best guess

22.

What does a positive drift factor usually implicate for the geometric Brownian motion?

a)

Asset value is expected to decline

b)

Asset value is expected to increase

c)

Volatility is expected to decline

d)

Volatility is expected to increase

23.

Which of the following is an important measure for risk management?

a)

Initial asset price

b)

Time period

c)

Drift

d)

95% VaR

24.

You are given the following values:

Bid 24.75; Bid 24.45; Bid 34.95; Ask 25.25; Ask, 24.55

Which is the first line of the order book?

a)

Bid 24.75; Ask 24.55

b)

Bid 34.95; Ask 24.55

c)

Bid 24.45; Ask 25.25

d)

Bid 34.95; Ask 25.25

25.

What is not a commodity?

a)

Metals

b)

Agricultural products

c)

Android Smartphones

d)

Energy

26.

Which of the following is not a job role in energy trading?

a)

Portfolio Manager

b)

Dispatcher

c)

Analyst

d)

Angel Investor

27.

Which of the following is not a Tie-Breaker?

a)

Order Imbalance

b)

Market Direction

c)

Continuous Market Price

d)

Number of buyers/sellers

28.

Which of the following is NOT an energy unit?

a)

kWhh\frac{kWh}{h}  

b)

BTU

c)

Joule

d)

TOE

29.

Which effect does an increase in efficiency have on the marginal cost structure?

a)

Cost increases

b)

Is independent

c)

Cost decreases

d)

Depends on the input

30.

Which of the following is not a usual product in energy markets?

a)

Peak-Load

b)

Base-Load

c)

Off-Base-Load

d)

Off-Peak-Load

31.

You buy a stock at 50€, at the end of the day it is valued at 55€, the day after at 52.5€. What are the M2M positions for the respective ends of the day and the overall M2M P&L?

a)

5€, -2.5€, 2.5€

b)

5€, 2.5€, -2.5€

c)

55€, -2.5€, 52.5€

d)

-5€, 2.5€, -2.5€

32.

You plan to focus your early days in energy trading on making arbitrage on different products. You see that there is a big price discrepancy for baseload June products. Which of the following is NOT a method to extract the baseload June product.

a)

Buy year ahead b

Base-Load and sell all months individually

b)

Buy Q2 Base-Load and sell April, May and June separately

c)

Buy Peak-Load June and Off-Peak-Load June

d)

Buy Q2 Peak-Load and sell April, May and June Base-Load

33.

What is NOT part of the analysts job?

a)

Predict fundamental changes

b)

Compare market outcomes with external events

c)

Find trends

d)

Speculate on unpredictable market situations

34.

Which of the following is NOT an important characteristic of a grid?

a)

Natural Monopoly

b)

Geographically fixed

c)

Specific for one type of commodity

d)

Needs to be strictly balanced in all cases

35.

Consider the following table, which is the Indicative Equilibrium Price?

a)

3,22

b)

3,21

c)

3,2

d)

3,19

36.

What is voltage of a common distribution grid in Germany?

a)

230/400V

b)

220 to 380kV

c)

60 to 110kV

d)

6 to 30kV

37.

Which of the following is NOT a power unit?

a)

Js\frac{J}{s}  

b)

W

c)

kWh

d)

kWhh\frac{kWh}{h}  

38.

Which of the following is NOT an energy unit?

a)

kWhh\frac{kWh}{h}  

b)

BTU

c)

Joule

d)

TOE

39.

The current stock price of an asset is 120€ and the strike price for a put option is at 100€. The option is currently:

a)

ITM

b)

ATM

c)

OTM

d)

None

40.

The current stock price of an asset is 80€ and the strike price for a put option is at 100€. The option is currently:

a)

ITM

b)

OTM

c)

ATM

d)

None

41.

The current stock price of an asset is 120€ and the strike price for a call option is at 100€. The option is currently:

a)

ITM

b)

OTM

c)

ATM

d)

None

42.

The current stock price of an asset is 80€ and the strike price for a call option is at 100€. The option is currently:

a)

ITM

b)

ATM

c)

OTM

d)

None

43.

Which combination of options resembles a long stock position?

a)

ATM Long Call & ATM Short Put

b)

ATM Long Call & OTM Short Call

c)

OTM Long Call & OTM Short Put

d)

ITM Long Put & ATM Long Put

44.

Which strategy is called the covered call?

a)

Buying a call option and owning the stock

b)

Selling a call option and owning the stock

c)

Selling a put option and owning the stock

d)

Buying a put option and owning the stock

45.

Which strategy is called the married put?

a)

Buying a call option and owning the stock

b)

Selling a call option and owning the stock

c)

Selling a put option and owning the stock

d)

Buying a put option and owning the stock