59-Derivatives and Futures

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1).
Markets in which derivatives are traded, are classified as which of the following?
2).
Which of the following is the situation in which large portion of majority is borrowed from broker of investor?
3).
Which of the following contracts involves future exchange of assets at a specified price?
4).
Which of the following units guarantees that all buying and selling will be made by traders?
5).
Which of the following is an example of derivative securities?
6).
Standardized futures contracts exist for all of the following underlying assets except which of the following?
7).
Which of the following does the most to reduce default risk for futures contracts?
8).
Which of the following is most similar to a stock broker?
9).
Using futures contracts to transfer price risk is known as which of the following?
10).
Which of the following is best described as selling a synthetic asset and simultaneously buying the actual asset?
1. Markets in which derivatives are traded, are classified as which of the following?
[A] assets backed market
[B] cash flow backed markets
[C] mortgage backed markets
[D] derivative securities markets
2. Which of the following is the situation in which large portion of majority is borrowed from broker of investor?
[A] future investment
[B] forward investment
[C] leveraged investment
[D] non-leveraged investment
3. Which of the following contracts involves future exchange of assets at a specified price?
[A] future contract
[B] forward contract
[C] Present contract
[D] Spot contract
4. Which of the following units guarantees that all buying and selling will be made by traders?
[A] clearing house
[B] trading house
[C] guarantee house
[D] professional house
5. Which of the following is an example of derivative securities?
[A] return backed security
[B] cash flow backed security
[C] interest backed security
[D] mortgage backed security
6. Standardized futures contracts exist for all of the following underlying assets except which of the following?
[A] Treasury bonds
[B] Gold
[C] Common stocks
[D] Stock index
7. Which of the following does the most to reduce default risk for futures contracts?
[A] High liquidity
[B] Flexible delivery arrangements
[C] Marking to market
[D] Credit checks for both buyers and sellers
8. Which of the following is most similar to a stock broker?
[A] Floor broker
[B] Futures commission merchant
[C] Local
[D] Pit trader
9. Using futures contracts to transfer price risk is known as which of the following?
[A] hedging
[B] arbitrage
[C] speculating
[D] diversifying
10. Which of the following is best described as selling a synthetic asset and simultaneously buying the actual asset?
[A] Arbitrage
[B] Diversifying
[C] Speculating
[D] Hedging
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