Basics of Derivatives

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Questions and Answers

Which of the following assets is NOT mentioned as an underlying asset for derivatives?

  • Copper
  • Oil
  • Gold
  • Platinum (correct)

During which century did the Tulip Mania in Holland lead to fortunes being lost after a speculative boom in tulip futures burst?

  • 18th Century
  • 12th Century
  • 13th Century
  • 17th Century (correct)

What was the purpose of developing a futures market in rice near Osaka, Japan, around the late 17th century?

  • To encourage rice consumption
  • To stabilize rice prices
  • To protect rice producers from bad weather or warfare (correct)
  • To promote international trade

Which organization in the US listed the first 'exchange traded' derivative contract in 1865?

<p>Chicago Board of Trade (CBOT) (D)</p> Signup and view all the answers

What specific type of market milestone occurred in European trade fairs during the 12th century?

<p>Signing contracts promising future delivery (D)</p> Signup and view all the answers

Which of the following is NOT considered an underlying asset for derivatives based on the text?

<p>Iron (A)</p> Signup and view all the answers

What was the original name of the Chicago Butter and Egg Board before it was reorganised?

<p>Chicago Mercantile Exchange (CME) (C)</p> Signup and view all the answers

Which exchange became the first marketplace for trading listed options in 1973?

<p>Chicago Board Options Exchange (CBOE) (B)</p> Signup and view all the answers

In what year did CBOT introduce the Treasury bill futures contract, the first successful pure interest rate futures?

<p>1975 (D)</p> Signup and view all the answers

Which exchange introduced T-bond futures contract in 1977?

<p>Chicago Board of Trade (CBOT) (C)</p> Signup and view all the answers

Which of the following factors influenced the growth of derivative markets globally according to the text?

<p>Enhanced understanding of market participants on risk management (A)</p> Signup and view all the answers

What was the purpose of setting up a 24-member committee under Dr. L.C. Gupta by SEBI in 1996?

<p>To develop a regulatory framework for derivatives trading in India (A)</p> Signup and view all the answers

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