Podcast Beta
Questions and Answers
Which market is characterized by immediate exchange of the underlying asset?
What is the main function of forward transactions?
What is the characteristic of transactions in the spot and forward markets?
What is the relationship between the futures market and the spot and forward markets?
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Which of the following is the maximum daily price fluctuation for commodity futures Oil contracts traded on Nymex?
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Why is there a need for a maximum price fluctuation in commodity futures trading?
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What happens if the price of a commodity futures contract reaches the maximum daily price fluctuation?
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What is the purpose of inspection in commodity futures trading?
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Which of the following is NOT a role of the clearing house in futures markets?
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What is the purpose of daily margin calls in futures markets?
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What is the function of collateralization in OTC markets?
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What is the purpose of the G20 objectives in futures markets?
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According to the text, what is the formula for the theoretical futures price?
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What is the formula for the net profit in a cash-and-carry arbitrage?
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When storage costs are positive, what can cause the futures price to be less than the spot price?
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What is the formula for the futures price in a market in backwardation?
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Which of the following is true about the liquidity of the forwards market?
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Which of the following is true about the initial outlay in futures and forwards markets?
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Which of the following is true about hedging in the futures and forwards markets?
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Which of the following is true about the evolution of the futures market?
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Which of the following is the correct formula for the cost of carry in the pricing of futures contracts?
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What is the formula for the cost of carry expressed as a simple interest rate?
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What is the correct formula for the valuation of a futures contract in continuous time?
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What is the correct formula for the valuation of a futures contract with a maturity of three months and accumulated interest for 6 months, using compounded interests?
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Which formula is used to calculate the theoretical price of a futures contract on a coupon-bearing bond using a simple interest rate?
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What is the value of a forward contract if the spot price of the underlying asset is $110 and the forward price is $100?
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Which formula is used to calculate the theoretical price of a futures contract on equities and equity indices using a continuously compounded interest rate?
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What is the theoretical price of a futures contract on a coupon-bearing bond if the spot price is $90, the interest rate is 8%, the coupon rate is 4%, and the time to maturity is 1 year?
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What is the value of a forward contract if the spot price of the underlying asset is $85 and the forward price is $100?
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Which formula is used to calculate the theoretical price of a futures contract on equities and equity indices using a simple interest rate?
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