Basics of Derivatives
10 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Which of the following is NOT an example of an underlying asset for derivatives?

  • Sugar
  • Natural Gas
  • Aluminium
  • Real Estate (correct)

    • In which century did the Tulip Mania occur in Holland, leading to fortunes being lost in a speculative boom in tulip futures?

  • 17th Century (correct)
  • 16th Century
  • 18th Century
  • 19th Century

    • Which of the following statements about the history of derivatives is NOT true?

  • The Chicago Board of Trade facilitated trading of forward contracts on various commodities in 1848.
  • The first exchange-traded derivative contract in the US was listed by the New York Stock Exchange in 1865. (correct)
  • In the 13th century, English Cistercian Monasteries frequently sold their wool up to 20 years in advance to foreign merchants.
  • In the 12th century, sellers in European trade fairs signed contracts promising future delivery of items they sold.

    • Based on the information provided, which of the following statements is true?

    <p>The first derivatives market was developed in Japan near Osaka for rice futures.</p> Signup and view all the answers

    What is the underlying principle behind the development of derivatives markets?

    <p>To protect producers and sellers from risks related to their products or assets</p> Signup and view all the answers

    What was the primary reason for the introduction of the International Monetary Market (IMM) by the Chicago Mercantile Exchange (CME) in 1972?

    <p>To facilitate trading in currency futures</p> Signup and view all the answers

    Which of the following statements accurately describes the factors influencing the growth of the derivative market globally?

    <p>Increased fluctuations in underlying asset prices in financial markets, integration of financial markets globally, and use of latest technology in communications to reduce transaction costs</p> Signup and view all the answers

    Which of the following events occurred first in the chronological order of developments in the Indian derivatives market?

    <p>SEBI set up a 24-member committee under the Chairmanship of Dr. L.C. Gupta to develop a regulatory framework for derivatives trading in India.</p> Signup and view all the answers

    Which of the following statements is not true about the developments in the Indian derivatives market?

    <p>The Securities Contract Regulation Act was amended to include derivatives as 'securities' based on the recommendations of the committee under the Chairmanship of Prof. J.R. Verma.</p> Signup and view all the answers

    According to the passage, which of the following events occurred after the introduction of the Eurodollar futures contract by the CME in 1982?

    <p>The CBOE introduced options on stock indexes with the S&amp;P 100® (OEX) and S&amp;P 500® (SPXSM) Indexes</p> Signup and view all the answers

    More Like This

    Basics of Derivatives
    12 questions

    Basics of Derivatives

    BonnyHarp avatar
    BonnyHarp
    Derivatives in Finance
    30 questions

    Derivatives in Finance

    SmoothestBlackberryBush avatar
    SmoothestBlackberryBush
    Derivatives Contracts: Understanding Buyers and Sellers
    5 questions

    Derivatives Contracts: Understanding Buyers and Sellers

    UsableRhinoceros avatar
    UsableRhinoceros
    Introduction to Financial Derivatives
    39 questions

    Introduction to Financial Derivatives

    ExcellentChrysoprase6736 avatar
    ExcellentChrysoprase6736
    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser