This is a timed quiz. You will be given 300 seconds to answer all questions. Are you ready?


Question 1

What is the difference between spot price and futures price of an asset called?

Correct! Wrong!

Question 2

Consider the below statements regarding derivatives.
Statement 1: In India, all option contracts have to be American in nature.
Statement 2: Writer of a call option is bearish and writer of a put option is bullish.
Statement 3: Risk profile of futures is symmetric whereas risk profile of options is asymmetric.
Which of the above statements are correct?

Correct! Wrong!

Question 3

There are 4 main derivative contracts: Forwards, Futures, Options and swaps. Forwards and futures are very similar. But still there are some differences.
Consider the following statements:
Statement 1: Futures are traded over-the-counter whereas forwards are exchange-traded.
Statement 2: Forwards are riskier than futures due to presence of counter-party risk.
Statement 3: Forwards are standardized contracts whereas futures are customized contracts.
Which of the above statements are incorrect?

Correct! Wrong!

Question 4

Which of the following statements is incorrect?

Correct! Wrong!

Question 5

________ is a standardized forward contract to buy and sell at a predetermined rate at a predetermined future date.

Correct! Wrong!

Securities Market - Derivatives

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