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WorksheetsCM-SIP Futures Set 2
Total questions: 102
Worksheet time: 51mins
A commodity futures trader is long a June platinum futures contract traded on CME and simultaneously short a June gold futures contract traded on EUREX. Which of the following describes the type of futures contracts spread held by the trader?
Intra-commodity, intra-delivery and intra-exchange
Intra-commodity, inter-delivery and intra-exchange
Inter-commodity, intra-delivery and inter-exchange
Inter-commodity, inter-delivery and inter-exchange
A trader long the 5-years U.S. Treasury Bond Futures contract and short physical 5 years U.S. Treasury bonds, is an example of:
An outright trade.
A hedging trade.
A basis trade.
A spread trade.
Which benchmark interest rate for dollar-denominated derivatives and loans has officially replaced the London Interbank Offer Rate (LIBOR) after it was phased out?
Singapore Interbank Offered Rate (SIBOR)
Euro Interbank Offered Rate (EURIBOR)
Secured Overnight Finance Rate (SOFR)
Treasury Bill Rate (T-Bill Rate)
A ______ is a trading strategy that combines a bull spread and a bear spread.
Vertical spread
Butterfly spread
Synthetic spread
Diagonal spread
Changes in the TED spread can provide an indication for which of the following risks?
Interest rate risks
Volatility risk
Credit risk
Correlation risk
Which of the following is NOT a type of hedge?
Strips and stacks
Matching hedge
Extrapolative hedge
Interpolative hedge
Which type of hedge is used when the time horizon of the futures contracts straddles 2 expiry dates?
Extrapolative hedge
Interpolative hedge
Strips hedge
Stacks hedge
John Lee runs a USD 50 million Bond Fund and wants to hedge his portfolio with Treasury futures. The price of each US Treasury contract is USD 100,000. If the hedge ratio is 0.67, how many Treasury futures contracts should he sell?
225 contracts
335 contracts
460 contracts
540 contracts
A fund manager sells the relevant equity index futures contracts to offset his long cash positions in the equity market. This is an example of:
Basis trading.
Hedge trading.
Outright trading.
Spread trading.
A local company wishes to take a 6-month USD 50 million loan in 5 months' time. Assuming the company intends to fully hedge its interest rate exposure via September futures contracts, and knowing that Eurodollar futures are based on a 3-month rate, calculate the number of contracts needed to execute.
25
50
100
150
A Singaporean airline anticipates a significant increase in jet fuel costs. Which of the following actions best exemplifies a hedging strategy the airline could implement?
Engaging in high-frequency trading of jet fuel futures contracts to generate speculative profits.
Buying jet fuel futures contracts to lock in a future price, thereby stabilizing operating costs.
Selling jet fuel futures contracts to profit from an anticipated decrease in fuel prices.
Investing in a diversified portfolio of energy stocks to benefit from the overall sector performance.
A Singaporean corporate treasurer aims to hedge their company's exposure to fluctuating jet fuel prices using crude oil futures contracts. The prices are correlated but not identical, and there are potential timing differences between fuel purchases and contract expiration. What best describes this hedging strategy and the primary risk faced?
The treasurer is speculating on crude oil prices and is primarily exposed to market risk.
The treasurer is implementing a perfect hedge, effectively eliminating all price risk.
The treasurer is implementing an imperfect hedge and is primarily exposed to basis risk.
The treasurer is implementing a cross hedge and is primarily exposed to counterparty risk.
An investment firm plans to use Treasury bond futures to hedge a portfolio of corporate bonds against rising interest rates. How should the firm determine the target rate for their hedge to account for basis risk, especially if the hedge is lifted before the futures contract's delivery date?
Set the target rate to zero, assuming the hedge will perfectly offset interest rate risk.
Use the spot rate of the corporate bonds as the target rate, ignoring the futures rate.
Calculate the target rate by adding the futures rate to the target rate basis, and continuously monitor the credit spread.
Set the target rate to the corporate bond's yield, assuming the hedge will perfectly offset interest rate risk.
A trader holds a short position in SGX E-mini Equity Futures and wants to automatically buy back the contract if the price rises to a certain level to limit losses. The current market price is 88.50. Which order type should the trader use to achieve this objective?
A stop-loss sell order placed above the current market price.
A limit buy order placed above the current market price.
A Market-if-Touched (MIT) buy order placed below the current market price.
A stop-loss buy order (buy-stop) placed above the current market price.
An investor hedges a portfolio of corporate bonds using Treasury bond futures but is forced to lift the hedge before the futures contract's expiry date. What is the most accurate description of the risk the investor has assumed?
The investor has successfully locked in the target rate, eliminating all forms of risk.
The investor has completely eliminated all forms of risk due to the flexibility of lifting the hedge early.
The investor has substituted price risk for basis risk, as the final outcome will be influenced by the difference between spot and futures prices.
The investor's outcome is solely determined by the final futures rate, as early lifting negates the impact of spot prices.
Which of the following steps is the final and most crucial part of the process to arrive at a reliable final settlement price for Singapore Government Bond futures?
Calculating the weighted average of the initial bid prices only, giving a higher weight to bonds with longer maturities.
Directly using the initial bid and offer prices provided by the Singapore Government Securities Dealers without any adjustments.
Calculating the arithmetic mean of the bid and offer prices for each bond after discarding the three highest and three lowest offers and bids, then weighting these means.
Selecting the median of the bid and offer prices for each bond and using these medians to calculate the final settlement price.
A Singaporean corporation intends to hedge its jet fuel price exposure using crude oil futures contracts, as no specific jet fuel futures are traded on the SGX. The corporation plans to unwind the hedge before the delivery month. What is the primary risk the corporation faces from this strategy?
Basis risk, from the imperfect correlation between jet fuel and crude oil prices and the early unwinding of the contract.
Operational risk, from errors in executing the hedging strategy.
Liquidity risk, from the inability to unwind the crude oil futures position at a favorable price.
Counterparty risk, from the possibility that the counterparty to the futures contract defaults on its obligations.
An arbitrageur notes the spot rate to September 15 (50 days) is 1.10% bid / 0.95% ask, and the spot rate to December 15 (141 days) is 1.20% bid / 1.2625% ask. To exploit a discrepancy between the implied forward rate and the actual market rate, what is the correct arbitrage strategy?
Lend for 50 days at the bid rate, borrow for 141 days at the ask rate, and buy September Eurodollar futures contracts.
Lend for 50 days at the ask rate, borrow for 141 days at the ask rate, and buy September Eurodollar futures contracts.
Borrow for 50 days at the ask rate, lend for 141 days at the bid rate, and sell September Eurodollar futures contracts.
Borrow for 50 days at the bid rate, lend for 141 days at the bid rate, and sell September Eurodollar futures contracts.
On the current trading day, the contract price for the front-month STI Index futures contracts was $3,200. The contract price rapidly increases and reaches the upper daily price limit. Trading is halted for a 'cooling off' period. What is the next likely course of action regarding the daily price limits for the remainder of that trading day?
Trading resumes without price limits for the rest of the day to allow the price to find its true market level.
Trading is suspended for the remainder of the day to prevent further speculation.
Trading resumes with the same price limits as before, ensuring continued protection against excessive volatility.
The exchange widens the price limits by a fixed percentage to allow for a slightly larger price fluctuation.
A Singaporean agricultural firm needs to hedge against potential price declines in their upcoming rice harvest. Which instrument would be most suitable, and how does its standardization reduce counterparty risk compared to the alternative?
Neither futures nor forward contracts are appropriate for agricultural firms.
Forward contracts are ideal due to their customized terms, despite increased counterparty risk.
Futures contracts offer a better-regulated and secure solution due to their standardized nature and minimal counterparty risk.
Both futures and forward contracts are equally suitable, with the choice depending solely on the firm's risk appetite.
Which of the following are considered main investment and trading strategies used in the futures markets?
I. Outright trades
II. Hedging
III. Spread trades
IV. Basis trades
I, II, and III only
I and II only
II, III, and IV only
I, II, III, and IV
A company wishes to hedge a 6-month USD 50 million loan using 3-month Eurodollar futures contracts. Each Eurodollar contract has a notional value of USD 1 million. The hedge ratio for this stack hedge is determined to be 2. Calculate the number of contracts needed to execute the hedge.
25
50
100
150
When hedging a bond portfolio with US T-bond futures, certain embedded options for sellers can cause the futures price to deviate from the price implied by a simple cash-and-carry model. As a result, the futures pricing is normally expected to be what?
Lower than the implied cash-and-carry price.
Higher than the implied cash-and-carry price.
The same as the implied cash-and-carry price.
Not enough information provided to determine the relationship.
What is the hedge ratio required to hedge the interest rate on a 6-month USD 100 million loan using the nearest 3-month Eurodollar futures contract in a stack hedge? Assume a 1% change in interest rates causes a USD 5,000 change in the value of a USD 1 million 6-month loan and a USD 2,500 change in the value of a 3-month Eurodollar futures contract.
200
20
2
0.2
What is a key economic impact of the futures market?
Futures are non-standardized contracts that are not readily available.
The futures market is a less active and minor source of vital market information.
Participants can use futures contracts to leverage on long or short positions.
Participants cannot use contracts to leverage on long positions.
Which of the following factors affect the basis in a futures contract?
I. Cost or return of carry
II. Differences in coupons between fixed income instruments
III. Market rates versus administered rates
IV. Yield curve changes
I and IV only
I, II, and III only
I, III, and IV only
I, II, III, and IV
The futures markets absorb information and help the market players in the process of which of the following?
Arbitrage
Transparency
Regulatory oversight
Price discovery
Which of the following statements about forwards and futures contracts is TRUE?
Futures are traded on an organized exchange.
Futures contracts have settlement terms which may vary for each contract.
Investors in futures contracts are exposed to significant counterparty risks.
Forward contracts have an active secondary market.
The SGX-DC has a mutual offset arrangement with which of the following exchanges?
Chicago Mercantile Exchange.
Euronext exchange.
NYSE Euronext.
Tokyo International Financial Futures Exchange.
Which of the following theories posits that futures prices are basically the expected spot prices of the underlying asset in the future?
Backwardation and Contango theory.
Cash and carry arbitrage theory.
Expectancy model.
Time value of money concept.
The spot price of USD/SGD is 1.39, the annual interest rate in the USA is 5% and that in Singapore is 3%. What is the theoretical price of a 1-year forward USD/SGD contract?
1.4178
1.4170
1.3635
1.3627
Which of the following can be considered as an indicator of an increase in the default risk in the financial markets?
Narrowing butterfly spread
Narrowing calendar spread
Widening condor spread
Widening TED spread
Based on the following information, calculate the number of futures contracts that an investor should sell for a delta-neutral hedge. The portfolio value is USD100 million, the price of each futures contract is USD200,000, and the hedge ratio is 0.5.
100
250
500
1000
Futures originated in the ____
base metals sector
precious metals sector
agricultural sector
foreign exchange market
Transactions involving future deliveries were earlier known as ____.
options
forwards
spreads
Accruals
Economic importance of futures markets includes its role in ____.
price discovery
increasing asset prices
reducing transparency
None of the above.
Risk management role of futures markets is indicated by which of the following factors?
Transparency and ready availability of prices reduces the risk.
Investors may use futures contracts for achieving their investment objectives.
Risk of increase in prices of key supplies is reduced.
All of the above.
Which of the following is NOT a difference between Futures and other financial instruments?
Value.
Lifespan.
Trading objectives.
Low risk.
Differences between futures and forwards DO NOT relate to which of the following factors?
Transferability.
Involvement of an exchange.
Presence of a secondary market.
None of the above.
Which of the following statements about forwards is FALSE?
They are privately negotiated.
Mark-to-market process is followed on a daily basis.
Usually there is no partial settlement.
Settlement terms may vary from contract to contract.
Characteristics of forward contracts include ____.
High flexibility.
High counterparty risk.
High customization.
All of the above.
In the US Treasury Futures, the invoice price is equal to ____.
Settlement Price / (Conversion Factor - Accrued Interest)
Settlement Price x Conversion Factor - Accrued Interest
Settlement Price x Conversion Factor + Accrued Interest
Settlement Price + Conversion Factor X Accrued Interest
The term-sheet of a futures contract ____
is non-binding
sets the basic terms and conditions for the investment
serves as a template for more detailed legal documents
All of the above.
In the futures market, the binding contract DOES NOT contain which of the following terms?
Method of calculating the settlement price.
Settlement basis.
Spot price.
Trading hours.
The price quote for 2-year T-note Futures is in terms of ____.
percent of par to 1/4 to 1/32nd of 1% of par
percent of par to 1/2 to 1/32nd of 1% of par
percent of par to 1/2 to 1/16th of 1% of par
percent of par to 1/4 to 1/16th of 1% of par
Which of the following statements about packs and bundles of futures contracts is/are TRUE?
I. Packs involve consecutive series of four Eurodollar futures.
II. Bundles involve consecutive series of 6 or more Eurodollar futures.
III. Bundles can be constructed starting with any quarterly contract.
IV. The first contract in any bundle is typically the last quarterly contract in the Eurodollar strip.
I, II, III & IV
III & IV
I & III
II only.
SGX AsiaClear is the division of SGX for ____.
derivatives trading
clearing and settlement
clearing services of OTC oil swaps and freight futures
settlement of KO products
Which of the following statements about a limit order for a futures contract is FALSE?
The order is guaranteed to be totally filled.
The quantity is specified.
The price is specified.
None of the above.
Market-to-limit orders for futures contracts can be ____.
entered as FAK
entered as FOK
stored in the order book as GTC
All of the above
In a market-to-limit order for a futures contract, if there is no price at the opposite side of the order book, the order is stored as a limit order at ____ than the best price on the same side of the book
2 price ticks better
1 price tick better
4 price ticks better
3 price ticks better
If a market order for a futures contract is entered during a state where orders are not continuously matched, it takes the ____ as its price
closing price of the previous day
equilibrium price
the average price of the previous 3 trading days
settlement price of the previous day
The Stop Order trigger condition can be defined by which of the following parameters?
I. Stop Series.
II. Stop Price.
III. Stop time.
I, II
I, II, III
III only
I only
In the case of Stop Price Reference Type condition for a stop loss order, the stop price can be compared to which of the following prices?
Bid price
Ask price
Last price
All of the above
Which of the following statements about Session State Orders is TRUE?
They may not be Good-Till-Cancelled orders.
They may not be Limit orders.
They may not be stop orders.
They may not be market orders.
Which of the following statements about a market-if-touched (MIT) order are TRUE?
I. It is submitted as a market order if the trigger price is touched.
II. An MIT sell order is placed below the existing market price.
III. MIT orders are not visible to market participants before the trigger price is touched.
IV. All MIT orders are guaranteed to be filled.
I, II, III & IV
II & IV
I & III
II, III & IV
Which of the following is NOT a category of derivatives traded on the SGX?
Foreign exchange.
Dividend Indices.
Commodities.
None of the above.
SGX-DC DOES NOT provide clearing for which of the following trades?
OTC commodity trades registered via the SGX OTC Trade Registration Platform.
Products listed on SGX-DT.
OTC financial derivatives trades registered via industry-used trade registration system.
None of the above.
SGX-DC runs a settlement cycle for all derivatives products on a ____.
weekly basis
daily basis
quarterly basis
monthly basis
Which of the following SGX-DT products are eligible for mutual offset with CME?
I. Eurodollar Futures (ED).
II. S&P 500 Futures.
III. Euroyen (TIBOR) Futures (EY).
IV. Nikkei 225 Index Futures (NK).
I, II, III & IV
I, III & IV
II & III
I & IV
Which of the following statements about pricing of futures is/are TRUE?
I. They are priced on a net cost of financing basis.
II. Difference between cash price and futures price is known as cost of yield.
III. Futures price is an accurate indicator of the spot price of the underlying asset on the maturity date.
IV. In the cash-and-carry arbitrage, the trader sells the futures contract.
II & III
I & IV
I, II & III
IV only
A bond can be purchased in the cash market at $50, while the futures price is $52. The coupon is $2.50 and the financing cost is $1.50. Ignoring time value of money, advise whether it is better to buy a 1 year futures contract for a bond or buy the bond in cash.
It is better to buy the bond in the cash market.
It is better to buy the bond futures contract.
Both the options are equally good.
Cannot be determined with the given data
The price of a Stock Index Futures Contract is:
I. Spot price + Interest - Dividend.
II. Spot price + Financing cost - Income from stock.
III. Spot price - Interest + Dividend.
IV. Spot price - Financing cost + income from the stock
I & II
II & III
III & IV
I & IV
The reverse cash and carry arbitrage involves which of the following steps? The trader:
Buys the commodity.
Sells the futures contract.
Lends money received from the short sale.
All of the above.
Which of the following statements about risks associated with futures contracts is FALSE?
The greater the net cost of carry, the greater the basis.
The greater the mismatch between the maturity dates of the cash and futures contracts, the greater the basis.
Position adjustments may be first reflected through the futures market, thereby affecting the basis.
None of the above.
Regarding futures pricing models, which of the following statements is/are TRUE?
The cost of carry model explains futures prices in terms of spot price adjusted with the cost of holding the asset till maturity of the futures contract.
Expectancy Model of Futures Pricing posits that futures prices are simply the expected spot prices of an asset in the future.
Activities in the futures markets may lead the spot market in price movement if the futures contracts are more liquid.
All of the above.
Which of the following statements about factors affecting basis is TRUE?
The net cost and the basis are positively correlated.
Higher the difference between the maturity dates of the cash and futures contract, lower the basis.
If the yield curve gets steeper, the basis will become narrower in case it was positive.
Administered rates are more volatile compared to market rates.
Regarding factors affecting basis, which of the following statements is FALSE?
If the market sentiment turns bullish from bearish, the basis will widen.
If the market sentiment turns bearish from bullish, the basis will widen.
Basis may overshoot its implied value in case of significant changes in market sentiments.
None of the above.
In the case of a hedged position, basis is defined as:
Spot price of asset to be hedged + Futures price of contract used
Futures price of contract used - Spot price of asset to be hedged
Spot price of asset to be hedged - Futures price of contract used
None of the above.
A futures contract and its underlying asset may not be the same as the asset being hedged because of which of the following reasons?
The underlying asset may not be exactly the same as the asset being hedged.
Uncertainty in timing of purchase or sale of the asset being hedged.
The hedge may involve selling the futures contract before the delivery month.
All of the above.
A Eurocurrency is _____
A futures contract denominated in Euro.
The official exchange rate between the currency and Euro.
A futures contract which agrees to buy Euro with the domestic currency.
A currency that is lent or borrowed outside the country of its origin.
If the annualized interest rate for a 180 day Treasury bill is 4.25%, the price of the futures contract is _____
$95.92
$95.75
$97.55
$102.13
Which of the following statements about stock indices is/are FALSE?
I. Nikkei 225 index is equally weighted.
II. STI Index is price weighted.
III. SGX All Share Index is capitalization weighted.
IV. Value Line Composite Average is price-weighted.
I & IV
II, III & IV
I, II, III & IV
II only.
Which of the following statements about equally weighted indices is FALSE?
A stock with a market price of $20 will have the same weightage as a stock with a market price of $25.
Movements in the index can be based on the arithmetic average of the percent price changes for the stocks in the index.
Movements in the index can be based on the geometric average of the percent price changes for the stocks in the index.
None of the above.
If 1 USD = SGD 1.25, annual interest in the two countries is 4% and 6% respectively, what is the exchange rate after one year based on interest rate parity theory?
1 USD = SGD 1.378.
1 USD = SGD 1.2264.
1 USD = SGD 1.274.
1 USD = SGD 1.275.
Fed Funds belong to which class of futures contracts?
Foreign exchange futures.
Interest rate futures.
Base metals futures.
Energy futures.
Which of the following CANNOT be the underlying asset in short-term interest rate futures contracts?
A time deposit in a Eurocurrency.
A government treasury bill.
A basket of preferred shares issued by blue chip companies.
All of the above.
Which of the following correctly depicts the relationship between various factors in the interest rate parity theory relationship between the spot rate and the futures rate?
Spot rate is inversely proportional to the annualised interest rate of base currency.
Futures rate is unrelated to the annualised interest rate of the counter-currency.
Annualised interest rate of the base currency appears in the numerator of the formula for calculating futures rate.
None of the above.
The American Dow Jones Industrial Average is a _____ index.
price-weighted average
Capitalization-weighted average
equally-weighted average
None of the above.
Which of the following statements about Equity Index Futures and Stocks is/are FALSE?
I. There is no uptick rule for short-selling Equity Index Futures.
II. Borrowing of shares is allowed in the case of short-selling Equity Index Futures.
III. Cash index is the underlying for Equity Index Futures.
IV. Stocks are marked to market on a daily basis.
I & IV
II & IV
I, II, III & IV
III only
The Australian ASX 200 Index is a _____ index.
equally-weighted average
market-value-weighted average
price-weighted average
None of the above.
Compared to a market weighted index, an Equally-Weighted Index comprising of the same stocks will always have a _____ exposure to smaller market cap stocks and _____ exposure to large-cap stocks.
lesser, greater
greater, lesser
greater, greater
lesser, lesser
The fair value of an equity index futures contract is usually expected to be positive because of which of the following reason?
Long-term interest rates are lower than dividend yields.
Short-term interest rates are lower than dividend yields.
Equity index futures holders are not entitled to dividends.
None of the above.
If the futures price of an Equity Index Futures is $100, the spot price is $95, and the interest is $7, what is the dividend?
$2
$3
$7
Zero
If there are no dividends, the future price of an Equity Index Futures will theoretically be
the same as the spot price if the interest rate is greater than zero
more than the spot price if the interest rate is more than zero
less than the spot price if the interest rate is equal to zero
None of the above.
Historically, the correlation between real estate and bond investments has been
highly volatile
high
low
Absent
The National Council of Real Estate Investment Fiduciaries index focuses on
commercial real estate
industrial properties
single-family dwellings
large homes
The S&P/Case-Shiller Home Price Index is a series of indices representing ____ different metropolitan statistical areas.
3
5
10
12
The main types of participants in the futures market are:
I. Insurance providers.
II. Speculators.
III. Arbitrageurs.
IV. Portfolio managers.
II & III
II, III & IV
I, II, III & IV
II only.
Which of the following statements about arbitrageurs is FALSE?
They take directional bets on the markets.
They profit from the difference in prices in the cash and the futures markets.
They normally work for institutions rather than themselves.
They help improve the liquidity of the market.
Proprietary trading firms are also known as ____.
prop shops
market makers
long only traders
short only traders
Spread trades in the futures markets involve
Buying and selling the same contract after a time interval.
Buying and selling contracts simultaneously.
Buying and selling contracts with different contract size at different times.
None of the above.
Which of the following statements about types of spreads is/are FALSE?
I. Inter-commodity spreads involve the same commodity, but on different exchanges.
II. Inter-delivery spread trades involve spread between contracts of different commodities with different delivery months.
III. Calendar spread is done on the same exchange, in the different commodities, but for different contract sizes.
IV. Inter-market spread trades involve different exchanges.
I, II & III
I, II, III & IV
III & IV
II only.
If a speculator believes that the long-term interest rates will rise faster than the short-term rates, what should he do?
Sell the near term contract.
Buy the long-term contract.
Buy the near term contract and sell the long-term contract.
None of the above.
Which of the following statements about butterfly spreads is TRUE?
It is bought when the nearby spread is expected to become more negative compared to the distant spread.
It is bought when the nearby spread is expected to become less positive compared to the distant spread.
It is bought if the nearby wing is expected to strengthen compared to the distant wing.
None of the above.
Based on the information below, calculate the implied forward rate for the period from 15 September to 15 December (90 days) of the futures contract with the following information.
Spot date to 15 Sep = 45 days
Spot date to 15 Dec = 135 days
45-day interest rate = 1.25%
135-day interest rate = 1.75%
1.125%
1.875%
1.925%
2.000%
Currently the following SGX-DT products are eligible for mutual offset with CME, EXCEPT:
Nikkei 225 Index Futures
USD Nikkei 225 Index Futures
SGX FTSE Emerging Market Index Futures
SGX FTSE China A50 Index Futures
Which of the following participants would primarily use derivatives such as futures or options to assume risk and profit from anticipated movements in market prices?
Hedgers
Arbitrageurs
Speculators
Custodians
A 1-year fixed income instrument has a Dollar Value of a Basis Point (DV01) of USD 10,000 for a position size of USD 100 million. A 5-year instrument has greater price sensitivity to interest rate changes. To achieve the same DV01 of USD 10,000, the position size of the 5-year instrument would need to be:
USD 100 million
USD 200 million
USD 50 million
USD 20 million
Using AUD as the base currency, calculate the theoretical price for a 6-month AUD/SGD forward contract based on the following market information:
- AUD/SGD spot: 1.162
- 6 months AUD rate: 3.25%
- 6 months SGD rate: 1.00%
1.137
1.149
1.175
1.188
An investor is short a futures contract. To protect against potential losses if the market moves upwards, the investor could implement which of the following strategies?
Sell a call option
Buy a call option
Sell a put option
Buy a put option
The futures markets absorb economic and political information and enable market participants to make investment decisions through the process of
Arbitrage
Price discovery
Regulatory oversight
Transparency
Which of the following SGX-DT products is eligible for mutual offset with Chicago Mercantile Exchange (CME)?
Eurodollar Futures (ED)
MSCI Taiwan Index Futures (TW)
Japanese Government Bonds Futures (JG)
RMB Index Futures (RM)
