Question 1

Most futures contracts are closed by

Accepted Answer

A) delivery 
B) offset 
C) exercise 
D) default 
E) none of the above 
A) delivery 
B) offset 
C) exercise 
D) default 
E) none of the above B

Question 2

Futures contracts are similar to forward contracts because they both represent a commitment to buy something at a future time at a fixed price.

Accepted Answer

A) True 
 B)False  True

Question 3

Forward contracts are regulated by the Commodity Forward Trading Commission.

Accepted Answer

A) True 
 B)False  False

Question 4

When futures accounts are marked-to-market,an account balance below the maintenance margin must be brought up to the initial margin.

Accepted Answer

A) True 
 B)False

Question 5

Firms that solicit futures trading business from the public are called Futures Commission Merchants.

Accepted Answer

A) True 
 B)False

Question 6

Most forward contracts are closed by

Accepted Answer

A) delivery 
B) offset 
C) exercise 
D) default 
E) none of the above 
A) delivery 
B) offset 
C) exercise 
D) default 
E) none of the above

Question 7

Where did the U.S.futures market originate?

Accepted Answer

A) Chicago 
B) Kansas 
C) New York 
D) Minneapolis 
E) none of the above 
A) Chicago 
B) Kansas 
C) New York 
D) Minneapolis 
E) none of the above

Question 8

If the initial margin is $5,000,the maintenance margin is $3,500 and your balance is $4,000,how much must you deposit?

Accepted Answer

A) $6,000 
B) $1,500 
C) $9,000 
D) nothing 
E) none of the above 
A) $6,000 
B) $1,500 
C) $9,000 
D) nothing 
E) none of the above

Question 9

Which of the following organizations has the ultimate regulatory authority in the futures industry?

Accepted Answer

A) National Futures Association 
B) Commodity Futures Trading Commission 
C) Commodity Exchange Authority 
D) Securities and Exchange Commission 
E) none of the above 
A) National Futures Association 
B) Commodity Futures Trading Commission 
C) Commodity Exchange Authority 
D) Securities and Exchange Commission 
E) none of the above

Question 10

Which of the following contract terms is not set by the futures exchange?

Accepted Answer

A) the dates on which delivery can occur 
B) the expiration months 
C) the deliverable commodities 
D) the size of the contract 
E) the price 
A) the dates on which delivery can occur 
B) the expiration months 
C) the deliverable commodities 
D) the size of the contract 
E) the price

Question 11

Options on futures have been trading since

Accepted Answer

A) 1973 
B) 1982 
C) 1966 
D) 1936 
E) none of the above 
A) 1973 
B) 1982 
C) 1966 
D) 1936 
E) none of the above

Question 12

Which of the following is not a type of futures trader?

Accepted Answer

A) scalpers 
B) arbitrageurs 
C) profit-takers 
D) hedgers 
E) day traders 
A) scalpers 
B) arbitrageurs 
C) profit-takers 
D) hedgers 
E) day traders

Question 13

Position traders are futures traders who take very large positions.

Accepted Answer

A) True 
 B)False

Question 14

The number of futures contracts outstanding is called the

Accepted Answer

A) reportable position 
B) minimum volume 
C) open interest 
D) spread position 
E) none of the above 
A) reportable position 
B) minimum volume 
C) open interest 
D) spread position 
E) none of the above

Question 15

The federal regulator of the futures markets is the National Futures Association.

Accepted Answer

A) True 
 B)False

Question 16

If the initial margin is $5,000,the maintenance margin is $3,500 and your balance is $3,100,how much must you deposit?

Accepted Answer

A) $1,500 
B) $400 
C) $1,900 
D) 0 
E) none of the above 
A) $1,500 
B) $400 
C) $1,900 
D) 0 
E) none of the above

Question 17

The earliest financial futures contracts were futures on foreign currencies.

Accepted Answer

A) True 
 B)False

Question 18

A hedge fund is a very risky form of investment.

Accepted Answer

A) True 
 B)False

Question 19

The daily settlement procedure is a major difference between futures contracts and forward contracts.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is the most actively traded U.S.futures contract?

Accepted Answer

A) S&P 500 Index 
B) crude oil 
C) Treasury bonds 
D) Wheat 
E) none of the above 
A) S&P 500 Index 
B) crude oil 
C) Treasury bonds 
D) Wheat 
E) none of the above

Most futures contracts are closed by

Futures contracts are similar to forward contracts because they both represent a commitment to buy something at a future time at a fixed price.

Forward contracts are regulated by the Commodity Forward Trading Commission.

When futures accounts are marked-to-market,an account balance below the maintenance margin must be brought up to the initial margin.

Firms that solicit futures trading business from the public are called Futures Commission Merchants.

Most forward contracts are closed by

Where did the U.S.futures market originate?

If the initial margin is $5,000,the maintenance margin is $3,500 and your balance is $4,000,how much must you deposit?

Which of the following organizations has the ultimate regulatory authority in the futures industry?

Which of the following contract terms is not set by the futures exchange?

Options on futures have been trading since

Which of the following is not a type of futures trader?

Position traders are futures traders who take very large positions.

The number of futures contracts outstanding is called the

The federal regulator of the futures markets is the National Futures Association.

If the initial margin is $5,000,the maintenance margin is $3,500 and your balance is $3,100,how much must you deposit?

The earliest financial futures contracts were futures on foreign currencies.

A hedge fund is a very risky form of investment.

The daily settlement procedure is a major difference between futures contracts and forward contracts.

Which of the following is the most actively traded U.S.futures contract?

Introduction

Structure of Options Markets

Principles of Option Pricing

Option Pricing Models: the Binomial Model

Option Pricing Models: the Black-Scholes-Merton Model

Basic Option Strategies

Advanced Option Strategies

Principles of Pricing Forwards, Futures, and Options on Futures

Futures Arbitrage Strategies

Forward and Futures Hedging, Spread, and Target Strategies

Swaps

Interest Rate Forwards and Options

Advanced Derivatives and Strategies

Financial Risk Management Techniques and Applications

Managing Risk in an Organization

Filters

Exam 8: The Structure of Forward and Futures Markets

Most futures contracts are closed by

Futures contracts are similar to forward contracts because they both represent a commitment to buy something at a future time at a fixed price.

Forward contracts are regulated by the Commodity Forward Trading Commission.

When futures accounts are marked-to-market,an account balance below the maintenance margin must be brought up to the initial margin.

Firms that solicit futures trading business from the public are called Futures Commission Merchants.

Most forward contracts are closed by

Where did the U.S.futures market originate?

If the initial margin is $5,000,the maintenance margin is $3,500 and your balance is $4,000,how much must you deposit?

Which of the following organizations has the ultimate regulatory authority in the futures industry?

Which of the following contract terms is not set by the futures exchange?

Options on futures have been trading since

Which of the following is not a type of futures trader?

Position traders are futures traders who take very large positions.

The number of futures contracts outstanding is called the

The federal regulator of the futures markets is the National Futures Association.

If the initial margin is $5,000,the maintenance margin is $3,500 and your balance is $3,100,how much must you deposit?

The earliest financial futures contracts were futures on foreign currencies.

A hedge fund is a very risky form of investment.

The daily settlement procedure is a major difference between futures contracts and forward contracts.

Which of the following is the most actively traded U.S.futures contract?

Introduction

Structure of Options Markets

Principles of Option Pricing

Option Pricing Models: the Binomial Model

Option Pricing Models: the Black-Scholes-Merton Model

Basic Option Strategies

Advanced Option Strategies

Principles of Pricing Forwards, Futures, and Options on Futures

Futures Arbitrage Strategies

Forward and Futures Hedging, Spread, and Target Strategies

Swaps

Interest Rate Forwards and Options

Advanced Derivatives and Strategies

Financial Risk Management Techniques and Applications

Managing Risk in an Organization

Filters