Ünite Sınavı Soruları

I. Interest rates

II. Hedging

III. Currencies

IV. Credit

Which of the given is a type of swap?

Which of the given statements can be said to be true about Futures?

Which of the given statements can be said to be true about Forwards?

What is a financial contract between two parties, where one party (the holder or buyer of the option) has the right, but not the obligation, to buy or sell an underlying asset at a specified price (the strike price) and a specified date (the expiration date)?

I. In exchange-traded markets, buyers and sellers trade securities through a centralized exchange where the trades are executed and cleared by a third-party exchange. On the other hand, in OTC markets, buyers and sellers trade directly with each other, often through dealers or brokers, without needing a centralized exchange.

II. OTC markets are typically more regulated than exchange-traded markets. OTC securities are subject to strict regulatory requirements and oversight, which helps to ensure fair and orderly trading and investor protection. In contrast, exchange-traded markets are generally less regulated, which may result in greater investor risk.

III. Exchange-traded security has specific standards regarding maturity, form of delivery, product quality, etc.

Which of the given statements can be said to be true about the differences between Exchange-traded markets and over-the-counter (OTC) markets?

What is a financial agreement between two parties to exchange cash flows based on a predetermined set of terms?

I. In forwards, there are two common parties - buyers and sellers of a given contract. 

II. The party who buys the contract with a specified price and date in the future is known as the short position holder.

III. The party who sells the contract for a given price and maturity is known as the long position holder.

What can be said to be true about forwards?

What is the most popular derivative contracts?

I. The spot market is where financial assets are traded for immediate delivery and payment. On the other hand, derivative instruments derive their value from underlying assets such as securities, commodities, or currencies.

II. The spot market is used for immediate transactions, while the derivative market is used for hedging or speculation.

III. In the spot market, investors are exposed to the risk of the price movements of the underlying asset as well as the risk of the financial instrument itself. However, in the derivative market, investors are exposed to the price risk of the underlying asset. 

Which of the given statements can be said to be true about the differences between Spot Markets and Derivative Markets?

I. The margin mechanism in futures markets is designed to guarantee that investors have enough funds to cover any losses they may incur in their futures trading activities. 

II. To initiate a futures position, investors are required to deposit a certain sum of money known as the “initial margin” with their broker.

III. The variation margin, on the other hand, is the minimum amount of money that must be kept in the trader’s account to keep the position open.

What can be said to be true about the margin mechanism in futures markets?