Basics of Derivatives
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Questions and Answers

When was the Chicago Board Options Exchange (CBOE) established?

  • 1919
  • 1972
  • 1982
  • 1973 (correct)
  • Which exchange introduced the first successful pure interest rate futures contract?

  • Kansas City Board of Trade
  • Chicago Board Options Exchange (CBOE)
  • Chicago Butter and Egg Board (correct)
  • Chicago Mercantile Exchange (CME)
  • What was the name of the first stock index futures introduced by Kansas City Board of Trade in 1982?

  • T-bond futures contract
  • Option on S&P 500 Index
  • Option on S&P 100 Index (correct)
  • Eurodollar futures contract
  • What led to the growth of the derivatives market according to the text?

    <p>Sophisticated risk management tools</p> Signup and view all the answers

    Which committee recommended that derivatives should be declared as 'securities' in India?

    <p>Committee under Dr. L.C. Gupta</p> Signup and view all the answers

    What was the purpose of the group set up under Prof. J.R. Verma in India?

    <p>To recommend measures for risk containment in derivatives market</p> Signup and view all the answers

    What is a derivative?

    <p>A contract derived from the value of another asset</p> Signup and view all the answers

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

    <p>Real estate properties</p> Signup and view all the answers

    When did Tulip Mania occur?

    <p>17th Century</p> Signup and view all the answers

    Where was the first 'exchange traded' derivative contract listed in the US?

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

    What was the purpose of developing a futures market in rice near Osaka, Japan?

    <p>To protect rice producers from bad weather or warfare</p> Signup and view all the answers

    Which European trade fairs involved sellers signing contracts for future delivery of items they sold?

    <p>12th Century trade fairs</p> Signup and view all the answers

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