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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?
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?
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?
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?
What type of commitment includes credit derivatives?
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In forward commitments, what is specified along with the quantity of the underlying asset?
In forward commitments, what is specified along with the quantity of the underlying asset?
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