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  • Quiz 1

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    Aarham Aziz
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    This document contains two quizzes with questions about derivatives markets. The first quiz asks about describing derivatives in under 40 words, a transaction where Paul agrees to deliver GE shares at a fixed price on a future date where the spot price is higher, and the difference between a contingent claim and firm commitment in under 50 words. The second quiz asks about three differences between over-the-counter and exchange-traded derivatives markets, a similar transaction to the first quiz but with John delivering the shares, and repeats the contingent claim vs firm commitment question.

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    This document contains two quizzes with questions about derivatives markets. The first quiz asks about describing derivatives in under 40 words, a transaction where Paul agrees to deliver GE shares at a fixed price on a future date where the spot price is higher, and the difference between a contingent claim and firm commitment in under 50 words. The second quiz asks about three differences between over-the-counter and exchange-traded derivatives markets, a similar transaction to the first quiz but with John delivering the shares, and repeats the contingent claim vs firm commitment question.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    5 views4 pages

    Quiz 1

    Uploaded by

    Aarham Aziz
    This document contains two quizzes with questions about derivatives markets. The first quiz asks about describing derivatives in under 40 words, a transaction where Paul agrees to deliver GE shares at a fixed price on a future date where the spot price is higher, and the difference between a contingent claim and firm commitment in under 50 words. The second quiz asks about three differences between over-the-counter and exchange-traded derivatives markets, a similar transaction to the first quiz but with John delivering the shares, and repeats the contingent claim vs firm commitment question.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 4

    Quiz 1 – 1 PM

    29 Aug 2023
    1. Describe derivatives in less than 40 words.

    2. John agrees today to deliver 1,000 shares of GE at a fixed price of $50 per share
    on 31 Dec 2023.
    Paul is the counterparty. The spot price is $60 on 31 December. 1) Did Paul gain
    or lose? 2) how much? 3) Is Paul long or short?

    3. What is the basic difference between a contingent claim and a firm


    commitment? (less than 50 words)
    Quiz 1 – 2:30 PM
    29 Aug 2023
    1. Give three differences major differences between OTC and ETD markets.

    2. John agrees today to deliver 1,000 shares of GE at a fixed price of $50 per share
    on 31 Dec 2023. The spot price is $60 on 31 December. 1) Did John gain or lose?
    2) how much? 3) Is John long or short in this transaction?

    3. What is the basic difference between a contingent claim and a firm


    commitment? (less than 50 words)

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