Question 1

Selling stock index futures will increase a portfolio's beta.

Accepted Answer

A) True 
 B)False

Question 2

Buying stock index futures, will:

Accepted Answer

A)  Increase a portfolio's beta. 
B)  Decrease a portfolio's beta. 
C)  Not affect a portfolio's beta. 
D)  None of the above. 
A)  Increase a portfolio's beta. 
B)  Decrease a portfolio's beta. 
C)  Not affect a portfolio's beta. 
D)  None of the above.

Question 3

Options markets have developed in many countries, including:

Accepted Answer

A)  The United Kingdom. 
B)  Canada. 
C)  The Netherlands. 
D)  All of the above. 
E)  a and b only. 
A)  The United Kingdom. 
B)  Canada. 
C)  The Netherlands. 
D)  All of the above. 
E)  a and b only.

Question 4

Explain what an equity swap is and how it can be used.

Accepted Answer

a. Agreement to exchange the r

Question 5

A synthetic put option is created using stock index futures.

Accepted Answer

A) True 
 B)False

Question 6

There are options on stock index futures.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements is false?

Accepted Answer

A)  Stock index futures contracts are cash settlement contracts. 
B)  There are margin requirements for futures contracts. 
C)  Futures positions are marked-to-market daily. 
D)  Margins for speculators are less than for hedgers. 
E)  None of the above. 
A)  Stock index futures contracts are cash settlement contracts. 
B)  There are margin requirements for futures contracts. 
C)  Futures positions are marked-to-market daily. 
D)  Margins for speculators are less than for hedgers. 
E)  None of the above.

Selling stock index futures will increase a portfolio's beta.

Buying stock index futures, will:

Options markets have developed in many countries, including:

Explain what an equity swap is and how it can be used.

A synthetic put option is created using stock index futures.

There are options on stock index futures.

Which of the following statements is false?

Introduction

Overview of Market Participants and Financial Innovation

Depository Institutions

Insurance Companies

Asset Management Firms

Investment Banking Firms

Primary and Secondary Markets

Risk and Return Theories: I

Risk and Return Theories: II

Introduction to Financial Futures Markets

Introduction to Options Markets

Introduction to the Swaps, Caps, and Floors Markets

Common Stock Market: I

Common Stock Market: II

Stock Options Market

The Theory and Structure of Interest Rates

Valuation of Debt Contracts and Their Price Volatility Characteristics

The Term Structure of Interest Rates

Money Markets

Treasury and Agency Securities Markets

Corporate Senior Instruments Markets: I

Corporate Senior Instruments Markets: II

Municipal Securities Markets

The Residential Mortgage Market

The Market for Residential Mortgage-Backed Securities

Market for Asset-Backed Securities

Market for Commercial Mortgage Loans and Commercial Mortgage-Backed Securities

International Bond Markets

International Bond Markets

Market for Interest Rate Risk Transfer Vehicles: OTC Instruments

The Market for Foreign Exchange and Risk Control Instruments

Filters

Exam 16: The Market for Stock Index Products and Other Equity Derivatives

Selling stock index futures will increase a portfolio's beta.

Buying stock index futures, will:

Options markets have developed in many countries, including:

Explain what an equity swap is and how it can be used.

A synthetic put option is created using stock index futures.

There are options on stock index futures.

Which of the following statements is false?

Introduction

Overview of Market Participants and Financial Innovation

Depository Institutions

Insurance Companies

Asset Management Firms

Investment Banking Firms

Primary and Secondary Markets

Risk and Return Theories: I

Risk and Return Theories: II

Introduction to Financial Futures Markets

Introduction to Options Markets

Introduction to the Swaps, Caps, and Floors Markets

Common Stock Market: I

Common Stock Market: II

Stock Options Market

The Theory and Structure of Interest Rates

Valuation of Debt Contracts and Their Price Volatility Characteristics

The Term Structure of Interest Rates

Money Markets

Treasury and Agency Securities Markets

Corporate Senior Instruments Markets: I

Corporate Senior Instruments Markets: II

Municipal Securities Markets

The Residential Mortgage Market

The Market for Residential Mortgage-Backed Securities

Market for Asset-Backed Securities

Market for Commercial Mortgage Loans and Commercial Mortgage-Backed Securities

International Bond Markets

International Bond Markets

Market for Interest Rate Risk Transfer Vehicles: OTC Instruments

The Market for Foreign Exchange and Risk Control Instruments

Filters