CLASS QUIZ 2 1. List 8 index futures traded in NSE 2. Expand the following: 1. NSCCL , 2.FMC ,3.CBOE ,4.CME , 5.

.ISE, 6.NYMEX ,7. OMX, 8. SGX, 9. TFX , 10 .LME 3. Write any 5 stock futures that are traded in NSE. 4. A company enters into a short futures contract to sell 50000 pounds of c otton for 70 cents per pound. The initial margin is $4,000 and the maintenance m argin is $ 3000. What price of cotton futures will trigger a margin call? 5. A company enters into a long futures contract to buy 1000barrels of oil for $20per barrel. The initial margin is $6000 and the maintenance margin is $40 00. What price of oil futures will allow $2000 to be withdrawn from the margin a ccount? 6. The basis strengthens unexpectedly. Which of the following is true? a. A short hedgers position improves b. A short hedgers position worsens c. A short hedgers position sometimes worsens and sometimes improves d. A short hedgers position stays the same 7. Metallge sells chaft ran into problems because a. The price of oil rose b. Margin calls created short term cash flow problems c. Rolling hedges forward is a very dangerous strategy d. All of the above 8. The spot price of an asset is positively correlated with the market. Whi ch of the following would you expect to be true? a. The forward price equals the expected future spot price b. The forward price is greater than the expected future spot price c. The forward price is less than the expected future spot price d. The forward price is sometimes greater and sometimes less than the expec ted future spot price