10 Questions
Which of the following is NOT an example of an underlying asset for derivatives?
Real Estate
In which century did the Tulip Mania occur in Holland, leading to fortunes being lost in a speculative boom in tulip futures?
17th Century
Which of the following statements about the history of derivatives is NOT true?
The first exchange-traded derivative contract in the US was listed by the New York Stock Exchange in 1865.
Based on the information provided, which of the following statements is true?
The first derivatives market was developed in Japan near Osaka for rice futures.
What is the underlying principle behind the development of derivatives markets?
To protect producers and sellers from risks related to their products or assets
What was the primary reason for the introduction of the International Monetary Market (IMM) by the Chicago Mercantile Exchange (CME) in 1972?
To facilitate trading in currency futures
Which of the following statements accurately describes the factors influencing the growth of the derivative market globally?
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
Which of the following events occurred first in the chronological order of developments in the Indian derivatives market?
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.
Which of the following statements is not true about the developments in the Indian derivatives market?
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.
According to the passage, which of the following events occurred after the introduction of the Eurodollar futures contract by the CME in 1982?
The CBOE introduced options on stock indexes with the S&P 100® (OEX) and S&P 500® (SPXSM) Indexes
Learn about the fundamentals of derivatives, which are financial contracts derived from the value of underlying assets such as metals, energy resources, agricultural commodities, and financial assets like shares and bonds.
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