Forward Commitments and Contingent Claims Overview
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Questions and Answers

Which financial instrument involves an obligation to engage in a transaction in the spot market at a future date at terms agreed upon today?

  • Swaps
  • Futures contract
  • Credit derivatives
  • Forward contract (correct)
  • What are contingent claims based on?

  • Settlement nature
  • Spot market price
  • Expiration date
  • Underlying asset (correct)
  • Which type of derivative is conditional on an event occurring?

  • Options (correct)
  • Forward contract
  • Asset-backed securities
  • Swaps
  • What type of commitment includes credit derivatives?

    <p>Contingent claims</p> Signup and view all the answers

    In forward commitments, what is specified along with the quantity of the underlying asset?

    <p>Date of the future transaction (expiration)</p> Signup and view all the answers

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