Financial Derivatives Quiz Set 2

1. Futures contracts are regularly traded on the?

Correct! Wrong!

2. Hedging in the futures market?

Correct! Wrong!

3. When interest rates fall, a bank that perfectly hedges its portfolio of Treasury securities in the futures market?

Correct! Wrong!

4. Futures markets have grown rapidly because futures?

Correct! Wrong!

5. Parties who have bought a futures contract and thereby agreed to _____ (take delivery of) the bonds are said to have taken a ____ position?

Correct! Wrong!

6. Parties who have sold a futures contract and thereby agreed to _____ (deliver) the bonds are said to have taken a ____ position?

Correct! Wrong!

7. By selling short a futures contract of Rs. 100,000 at a price of 115 you are agreeing to deliver?

Correct! Wrong!

8. By selling short a futures contract of Rs. 100,000 at a price of 96 you are agreeing to deliver?

Correct! Wrong!

9. By buying a long Rs. 100,000 futures contracts for 115 you agree to pay?

Correct! Wrong!

10. On the expiration date of a futures contract, the price of the contract?

Correct! Wrong!

11. The price of a futures contract at the expiration date of the contract?

Correct! Wrong!

12. Elimination of riskless profit opportunities in the futures market is?

Correct! Wrong!

13. If you purchase a Rs. 100,000 interest-rate futures contracts for 110, and the price of the Treasury securities on the expiration date is 106?

Correct! Wrong!

14. If you purchase a Rs. 100,000 interest-rate futures contract for 105, and the price of the Treasury securities on the expiration date is 108?

Correct! Wrong!

15. If you sell a Rs. 100,000 interest-rate futures contract for 110, and the price of the Treasury securities on the expiration date is 106?

Correct! Wrong!

16. If you sell a Rs. 100,000 interest-rate futures contract for 105, and the price of the Treasury securities on the expiration date is 108?

Correct! Wrong!

17. If you sold a short contract on financial futures you hope interest rates?

Correct! Wrong!

18. If you sold a short future contract you will hope that interest rates?

Correct! Wrong!

19. If you bought a long contract on financial futures, you hope that interest rates?

Correct! Wrong!

20. If you bought a long future contract you hope that bond prices?

Correct! Wrong!

Financial Derivatives Quiz Set 2

Leave a Reply

error: Content is protected !!
%d bloggers like this: