Ünite Sınavı Soruları

1. Forward
2. Futures
3. Swaps
4. Options

Which of the above are types of forward commitments?

1. The value of a forward contract is positive to the short party if F₀(T) > S_T and negative if F₀(T) < S_T at expiration.
2. The value of a swap at the start of contract is typically zero, and the swap price is determined through replication.
3. The swap price is simply the present value (PV) of all net cash flow payments from the swap.
4. Throughout the life of a swap contract, the value of a swap also changes.
5. Swap rates are locked in for the future like in the case of a forward rate agreement. It is the same as locking in multiple forward rate agreements for different periods at different forward prices.

Which of the statements above related to pricing and valuation of forward contracts are correct?

what is mean by type of derivatives?

What is the role of a clearing house?

Which type of derivative defined as an agreement made through an organized exchange to buy or to sell a fixed amount of an underlying commodity or financial asset on a future date (or within a range of dates) at an agreed price?

What is the difference between an American option and a European option? 

Suppose the risk-free rate is 12%, S0 = 120, and t (time period) is 3 month. What is the forward price?

Suppose the risk-free rate is 12%, S= $75, and t (time period) is 3 month. What is the forward price?

Which of the following is a contingent claim?

1. A contingent claim is a derivative that provides a buyer of option the right to buy or sell an underlying asset at a price previously agreed upon on a specified future date.
2. Unlike forward commitment contracts, contingent claims give the holder of the contract the right, not the obligation to buy or sell an underlying asset.
3. Its payoff also depends on the performance of the underlying asset.
4. Options are contingent claim contracts that provide the right but not the obligation to buy an asset at a specific price at a later date in the future.

Which of the statements above related to contingent claims are correct?

Suppose two parties are engaged in a forward contract with $100 forward price. Which of the following can be said when the underlying asset's price exceeds $100 at the expiration date?

"_ _ _ _ _ _ _ can be exercised any time up to the expiration date, while _ _ _ _ _ _ _ are exercised only on the expiration date."

Which of the following describes correctly the spaces above?

Which of the following is defined as customized contracts which is less liquid than exchange-traded derivative contracts?

If a quote on a UK government bond 3.80% BEY, then what is the MMY?

1. They are customized contracts so to suit both involving parties’ needs i.e. grade, time, and place of delivery.
2. There is no specific location or address to trade forward contracts.
3. Any type of commodities can be traded via forward contracts.
4. There are three different types of forward commitments: Forward, Futures, and Swaps contracts

Which of the statements above related to forward commitments are correct?

I. They are customized contracts to suit both involving parties' needs

II. There is no specific location or address to trade forward contracts

III. Any type of commodities can be traded via forward contracts

Which of above is/are among the characteristics of forward commitments?

Which of the following is the floating rate used in swap contracts?

Employee stock options (ESOs) are issued by companies for their employees and grant the employees the right to buy the company's stock at a specified price for a limited period of time. Based on this definition, it is possible to say that ESOs are an example of ...............?

Which of the following is not used when option pricing with Black-Scholes model?