Commodity Price Influences
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Questions and Answers

What are important factors in deciding the price trend of a commodity?

  • Interest rates, industrial production, currency movement
  • GDP growth rate, consumption pattern, per capita income (correct)
  • Currency movement, interest rates, employment rate
  • Industrial production, inflation rate, global currency values

How does currency movement affect commodity prices in a particular country?

  • Currency movement only affects global commodity prices
  • When the currency depreciates against the USD, the commodity price becomes cheaper
  • When the currency appreciates against the USD, the commodity price becomes cheaper (correct)
  • Currency movement has no impact on commodity prices

Which of the following is not an important factor in deciding commodity prices?

  • Currency movement
  • Inflation rate
  • Stock market performance (correct)
  • Employment rate

In what currency are most commodities globally denominated?

<p>US dollar (USD) (C)</p> Signup and view all the answers

What is the impact of interest rates on commodity prices?

<p>High interest rates could reduce the market prices of commodities (D)</p> Signup and view all the answers

What is the basis for determining the premium of an option?

<p>Intrinsic value and time value (C)</p> Signup and view all the answers

What role do stock exchanges play in determining option premiums?

<p>They provide a platform for buyers and sellers to meet (D)</p> Signup and view all the answers

What affects the time value of an option?

<p>Remaining time to expiration and volatility of the underlying asset (C)</p> Signup and view all the answers

When does an option have intrinsic value?

<p>When it is in-the-money (ITM) (D)</p> Signup and view all the answers

Who ensures the smooth functioning of the markets in relation to options trading?

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

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