18 Questions
Which of the following is true about call options?
Call options give the right to buy at a certain price before a certain date.
What is the purpose of forward contracts?
To neutralize risk by fixing the price of the underlying asset.
What are the three broad categories of traders who use derivatives?
Hedgers, speculators, and arbitrageurs.
Which category of derivative instruments involves an obligation for both the buyer and the seller to honor the deal?
Forward contract
What are the main types of optional derivative instruments?
Floor, cap, collar
What is the main advantage of trading on organized markets?
Quality of the product
Which region dominates the global futures and options market in terms of open interest?
North America
Which one of the following statements accurately describes hedging?
Hedging aims at reducing risks
What is the difference between the over-the-counter (OTC) market and the exchange-traded market?
OTC market has more default risk and opacity compared to the exchange-traded market
What is the main purpose of speculators in futures markets?
To add liquidity to the market
Which of the following is the primary function of derivatives markets?
Risk transfer
What is the main goal of risk management in derivatives markets?
To cover against market fluctuations
What is the process through which futures markets reveal information about future spot prices?
Price discovery
What is the relationship between volatility and potential returns and losses in the market?
Higher volatility leads to higher potential returns and lower potential losses
Which of the following is true about open interest in the OTC market?
Open interest remains constant as long as the instrument is being exchanged
What is the main change introduced by CCP in the OTC market?
Centralized clearing and settlement
Which of the following is NOT a characteristic of the OTC market?
It is a physical place where trading takes place
What is the purpose of trade compression in the OTC market?
To reduce the number of transactions
Quiz sur les marchés de gré à gré (OTC) et les intérêts ouverts. Testez vos connaissances sur les différences entre les intérêts ouverts et le volume, ainsi que sur les caractéristiques des marchés OTC tels que leur nature décentralisée et leur fonctionnement via un réseau informel d'agents et de courtiers. Découvrez également l'importance du CCP (centrale
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