标题: Reading 67: Derivative Markets and Instruments LOS a习题 [打印本页]
作者: honeycfa 时间: 2010-4-26 11:27 标题: [2010] Session 17 - Reading 67: Derivative Markets and Instruments LOS a习题
Session 17: Derivative Investments
Reading 67: Derivative Markets and Instruments
LOS a: Define a derivative and differentiate between exchange-traded and over-the-counter derivatives.
Which of the following is most accurate regarding derivatives?
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A) |
Exchange-traded derivatives are created and traded by dealers in a market with no central location. | |
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B) |
Derivatives have no default risk. | |
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C) |
Derivative values are based on the value of another security, index, or rate. | |
Derivatives “derive” their value from the value or return of another asset or security. Exchange-traded derivatives are standardized and backed by a clearinghouse. An over-the-counter derivative, such as a forward contract or a swap, exposes the derivative holder to the risk that the counterparty may default.
作者: honeycfa 时间: 2010-4-26 11:28
Over-the- counter derivatives:
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A) |
have good liquidity in the over-the-counter (OTC) market. | |
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B) |
are backed by the OTC Clearinghouse. | |
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C) |
are customized contracts. | |
OTC derivative contracts (securities) are customized and have poor liquidity. The contract is with a specific counterparty and there is default risk since there is no clearinghouse to guarantee performance.
作者: honeycfa 时间: 2010-4-26 11:28
Which of the following is NOT an over-the-counter (OTC) derivative?
Futures contracts are exchange-traded; forwards and most bond options are OTC derivatives.
作者: honeycfa 时间: 2010-4-26 11:28
Which of the following definitions involving derivatives is least accurate?
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A) |
A call option gives the owner the right to sell the underlying good at a specific price for a specified time period. | |
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B) |
An option writer is the seller of an option. | |
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C) |
An arbitrage opportunity is the chance to make a riskless profit with no investment. | |
A call option gives the owner the right to buy the underlying good at a specific price for a specified time period.
作者: honeycfa 时间: 2010-4-26 11:28
Which of the following is most likely an exchange-traded derivative?
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B) |
Equity index futures contract. | |
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C) |
Currency forward contract. | |
Futures are exchange-traded derivatives. Forward contracts and swaps are over-the-counter derivatives. Bond options are traded almost entirely in the over-the-counter market.
作者: honeycfa 时间: 2010-4-26 11:29
Which of the following is most likely an exchange-traded derivative?
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B) |
Equity index futures contract. | |
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C) |
Currency forward contract. | |
Futures are exchange-traded derivatives. Forward contracts and swaps are over-the-counter derivatives. Bond options are traded almost entirely in the over-the-counter market.
作者: honeycfa 时间: 2010-4-26 11:29
A financial instrument that has payoffs based on the price of an underlying physical or financial asset is a(n):
Options and futures are examples of types of derivative securities.
作者: honeycfa 时间: 2010-4-26 11:29
A derivative security:
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A) |
is like a callable bond. | |
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B) |
is one that is based on the value of another security. | |
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C) |
has a value dependent on the shape of the yield curve. | |
A derivative security is one that ‘derives’ its value from that of another security.
作者: honeycfa 时间: 2010-4-26 11:29
Which of the following statements regarding exchange-traded derivatives is FALSE? Exchange-traded derivatives:
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A) |
often trade in a physical location. | |
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B) |
are standardized contracts. | |
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Derivatives that trade on exchanges have good liquidity in most cases. They have the other characteristics listed.
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