FINANCIAL DERIVATIVES

QUIZ

Q.1 which of the following is private contract ?

a.Forward. b. Options. C. Futures d. Options on futures

Answer.

Q.2 which is a type of broker?

a. Trader. B. Account executive. C. Hedger. D. Speculator

Answer.

Q.3 The most important benefit to society of the futures market.

a. Speculation. B. Price discovery. C. Arbitrage. D. Hedging

Answer.

Q.4 Type of option that is easier to analyze or trade.

a. Euro. B. American. C. Canadian. D. European.

Answer.

Q.5 Pressure options are traded on Which exchange

a. Newyork B. Chicago. C. American. D. Phildelphia

Answer.

Q.6. Which option type has the largest open volume.

a. Index. B. Options on future. C. Stock. D. Foreign currency.

Answer.

Q.7 If trading gets crazy the last few minutes of trading, the coding price will be set by the

a. Direct clearing group. B. Executive council. C. Settlement committee. D. Clearing centre

Answer.

Q.8 option that can be exercised before or at the time of expiration.

a. American. B. Canadian. C. European. D. Euro

Answer.

Q.9. the basis will usually be wider for

a. More distant contracts

b. The same for all contacts

C. Less distant contacts

D. Uncorrelated with distance

Answer.

Q.10.under the theory of normal backwardation , future prices will tend to rise over the life of a contact
because ________________ tend to be

A. Speculators, long the futures market

B. Hedgers, long the futures market

C. Hedgers, short the futures market

D. Speculators, short the futures market.

Answer.