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LOS b, (Part 2): Describe the basic characteristics of forward contracts, futures contracts, options (calls and puts), and swaps.
Q1. Which of the following statements about futures contracts is least accurate?
A) Offsetting trades rather than exchanges for physicals are used to close most futures contracts.
B) The futures clearinghouse allows traders to reverse their positions without having to contact the other side of the initial trade.
C) To safeguard the clearinghouse, the exchange requires traders to post margin and settle their accounts on a weekly basis.
Q2. Which of the following contracts is least likely to be traded on an exchange?
A) Forward contract.
B) Forward commitment.
C) Futures contract.
Q3. A futures contract is NOT:
A) regulated.
B) illiquid.
C) standardized.
Q4. Which of the following statements regarding forward contracts is most accurate?
A) The buyer of a forward contract has agreed to deliver the underlying asset at a specific price and date in the future whereas the seller has agreed to accept delivery of the underlying at the same agreed upon price and date.
B) When prices increase, the buyer of a forward contract gains and the seller of a forward contract loses.
C) When prices decrease, the buyer of a forward contract gains, and the seller of a forward contract loses.
Q5. A futures contract is NOT:
A) a forward contract.
B) exchange-traded.
C) an equity security.
Q6. A contract that involves a series of forward commitments is a:
A) strap.
B) future.
C) swap.
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发表于 2009-3-2 09:28
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