This is a timed quiz. You will be given 300 seconds to answer all questions. Are you ready?
What is the difference between spot price and futures price of an asset called?
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?
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?
Which of the following statements is incorrect?
________ is a standardized forward contract to buy and sell at a predetermined rate at a predetermined future date.
Securities Market - Derivatives