FUTURES AND DERIVATIVES
Authored by Bò Bò
Specialty
1st - 5th Grade
Used 2+ times
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8 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following is the primary purpose of futures contracts?
Speculation
Risk management
Investment
Arbitrage
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following is an example of a derivative?
Stocks
Bonds
Commodities
Options
3.
MULTIPLE CHOICE QUESTION
30 sec • 5 pts
What is the main difference between futures and options?
Futures have no expiration date, while options do.
Futures give the buyer the right, but not the obligation, to buy or sell an asset, while options give the buyer the obligation to do so.
Options have no expiration date, while futures do.
Futures have a fixed price, while options have a variable price.
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the initial payment made when entering into a futures contract called?
Premium
Margin
Settlement
Collateral
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which regulatory body oversees futures and derivatives markets in the United States?
SEC
FED
CFTC
FINRA
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the process of settling a futures contract called?
Liquidation
Execution
Delivery
Settlement
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the term used to describe a situation where the futures price exceeds the spot price?
Contango
Backwardation
Arbitrage
Hedging
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