Question 1

One of the first automated trading systems that matched bids and offers implemented at the CME is called

Accepted Answer

A) COMEX 
B) GLOBEX 
C) LIFFE 
D) CFTC 
E) none of the above 
A) COMEX 
B) GLOBEX 
C) LIFFE 
D) CFTC 
E) none of the above

Question 2

The trading procedure on the floor of the futures exchange is referred to as

Accepted Answer

A) against actuals 
B) open interest 
C) open outcry 
D) index participation 
E) none of the above 
A) against actuals 
B) open interest 
C) open outcry 
D) index participation 
E) none of the above

Question 3

There are no futures contracts on the Dow Jones Industrial Average.

Accepted Answer

A) True 
 B)False

Question 4

Locals are futures traders who are in business for themselves.

Accepted Answer

A) True 
 B)False

Question 5

Very few futures contracts are terminated in delivery of the underlying commodity or security.

Accepted Answer

A) True 
 B)False

Question 6

One attraction of options on futures is that they trade side-by-side with the futures.

Accepted Answer

A) True 
 B)False

Question 7

A futures contract covers 5000 pounds with a minimum price change of $0.01 is sold for $31.60 per pound.If the initial margin is $2,525 and the maintenance margin is $1,000,at what price would there be a margin call?

Accepted Answer

A) 31.91 
B) 32.11 
C) 31.29 
D) 31.09 
E) 31.80 
A) 31.91 
B) 32.11 
C) 31.29 
D) 31.09 
E) 31.80

Question 8

Credit risk is handled in forward markets by daily marking-to-market.

Accepted Answer

A) True 
 B)False

Question 9

Scalping is a colorful term used to describe a futures trading style that involves aggressive,emotional trading.

Accepted Answer

A) True 
 B)False

Question 10

Variation margin is which of the following?

Accepted Answer

A) the difference in margin between hedger and speculator 
B) margin differences according to trading style 
C) margin deposited as a result of marking-to-market 
D) margin set by the variability of a futures price 
E) none of the above 
A) the difference in margin between hedger and speculator 
B) margin differences according to trading style 
C) margin deposited as a result of marking-to-market 
D) margin set by the variability of a futures price 
E) none of the above

One of the first automated trading systems that matched bids and offers implemented at the CME is called

The trading procedure on the floor of the futures exchange is referred to as

There are no futures contracts on the Dow Jones Industrial Average.

Locals are futures traders who are in business for themselves.

Very few futures contracts are terminated in delivery of the underlying commodity or security.

One attraction of options on futures is that they trade side-by-side with the futures.

A futures contract covers 5000 pounds with a minimum price change of $0.01 is sold for $31.60 per pound.If the initial margin is $2,525 and the maintenance margin is $1,000,at what price would there be a margin call?

Credit risk is handled in forward markets by daily marking-to-market.

Scalping is a colorful term used to describe a futures trading style that involves aggressive,emotional trading.

Variation margin is which of the following?

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

One of the first automated trading systems that matched bids and offers implemented at the CME is called

The trading procedure on the floor of the futures exchange is referred to as

There are no futures contracts on the Dow Jones Industrial Average.

Locals are futures traders who are in business for themselves.

Very few futures contracts are terminated in delivery of the underlying commodity or security.

One attraction of options on futures is that they trade side-by-side with the futures.

A futures contract covers 5000 pounds with a minimum price change of $0.01 is sold for $31.60 per pound.If the initial margin is $2,525 and the maintenance margin is $1,000,at what price would there be a margin call?

Credit risk is handled in forward markets by daily marking-to-market.

Scalping is a colorful term used to describe a futures trading style that involves aggressive,emotional trading.

Variation margin is which of the following?

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