Search Header Logo

Derivatives

Authored by Hong LE

Education

University

Used 2+ times

Derivatives
AI

AI Actions

Add similar questions

Adjust reading levels

Convert to real-world scenario

Translate activity

More...

    Content View

    Student View

15 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

Financial derivatives include

Stock

Bond

Futures

None of them

2.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

Which of the following is not a financial derivative?

Stock

Futures

Options

Forward contracts

3.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

Which of the following is a reason to hedge a portfolio?

To increase the probability of gains

To limit exposure to risk

To profit from capital gains when interest rates fall.

all of them

4.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

A contract that requires the investor to buy securities on a future date is called a

short contract

Long contract

Hedge

Cross

5.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

disadvantage of a forward contract is that

it may be difficult to locate a counterparty

the forward market suffers from lack of liquidity

these contracts have default risk

all of them

6.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

Forward contracts are risky because they

are subject to lack of liquidity

hedge a portfolio

Traded on the exchange

are standardized

7.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

On the expiration date of a futures contract, the price of the contract

always equals the purchase price of the contract

always equals the average price over the life of the contract

always equals the price of the underlying asset

cannot be determined

Access all questions and much more by creating a free account

Create resources

Host any resource

Get auto-graded reports

Google

Continue with Google

Email

Continue with Email

Classlink

Continue with Classlink

Clever

Continue with Clever

or continue with

Microsoft

Microsoft

Apple

Apple

Others

Others

Already have an account?