Eurex Exchange: Eurex Trader Exam! Trivia Questions Quiz

54 Questions | Total Attempts: 453

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Eurex Exchange: Eurex Trader Exam! Trivia Questions Quiz - Quiz

Are you a finance student who is about to sit for the Eurex trade exchange exam? You are in luck as the trivia quiz below is designed to test out just how much you know about the largest market for European based stocks and derivatives. Give it a try and be a step closer to passing your exams. All the best!


Questions and Answers
  • 1. 
    Which reason(s) exist(s) to order a cash settlement in lieu of physical delivery upon exercise of equity options?
    • A. 

      To maintain an orderly market

    • B. 

      A high number of in-the-money options

    • C. 

      Instruction of the company on whose shares the option is based

    • D. 

      Instruction of the Frankfurt Stock Exchange

  • 2. 
    The Boards of Management of the Eurex Exchanges may verify at any time whether the business activities of an exchange participant comply with the Eurex Exchange Rules.
    • A. 

      True

    • B. 

      False

  • 3. 
    Which body(ies) monitor(s) that the exchange prices of Eurex Deutschland are determined in an orderly manner?
    • A. 

      Market Supervision

    • B. 

      Exchange Council

    • C. 

      Trading Surveillance Office

    • D. 

      Board of Management of the respective Eurex Exchange

  • 4. 
    According to the Exchange Rules, the tasks of the Eurex Exchanges include in particular the conclusion of standardized derivative contracts, such as futures and options.
    • A. 

      True

    • B. 

      False

  • 5. 
    According to the Exchange Rules, what is the particular objective of the Eurex Exchanges?
    • A. 

      Conclusion of forwards

    • B. 

      Conclusion of swap transactions

    • C. 

      Conclusion of non-standardized derivates

    • D. 

      Conclusion of standardized derivate transactions, such as futures and options

  • 6. 
    According to the Exchange Rules, the tasks of the Boards of Management of the Eurex Exchanges include the regulation of the organization and business operations of the Exchange but not of the trading hours.
    • A. 

      True

    • B. 

      False

  • 7. 
    According to the Exchange Rules, the Exchange/Administrative Council is responsible for the surveillance of daily business of the respective Eurex Exchange.
    • A. 

      True

    • B. 

      False

  • 8. 
    All derivatives contracts including the OTC Flexible Options traded at the Eurex Exchanges are standardized.
    • A. 

      True

    • B. 

      False

  • 9. 
    According to the Exchange Rules, which one(s) of the following bodies is (are) responsible for the management of the Eurex Exchanges?
    • A. 

      Disciplinary Committee

    • B. 

      Boards of Management of the Eurex Exchanges

    • C. 

      Exchange Council

    • D. 

      Market Surveillance

  • 10. 
    Supervision of the operations of Eurex Deutschland is the responsibility of the competent highest state authority in the State of Hesse.
    • A. 

      True

    • B. 

      False

  • 11. 
    Which one(s) of the following institutions and bodies are authorised to request information and the submission of documents from exchange participants of Eurex Deutschland, as well as to carry out audits?
    • A. 

      Market Surveillance

    • B. 

      EDP Committee

    • C. 

      Members of the Supervisory Board

    • D. 

      Members of the Exchange Council

  • 12. 
    According to the Exchange Rules, which procedure applies in the event of an order for the exclusion of physical delivery of futures contracts?
    • A. 

      Positions are closed out at the last traded price prevailing prior to such order

    • B. 

      Rights and obligations shall be deemed to be performed upon the last daily settlement payment

    • C. 

      The previous day's opening price shall be used as Final Settlement Price

    • D. 

      Physical delivery is never excluded

  • 13. 
    According to the Exchange Rules, which of the following prices are determined at the Eurex Exchanges?
    • A. 

      Official closing prices for options

    • B. 

      Settlement prices

    • C. 

      Transaction prices during trading hours

    • D. 

      Official cash market prices

  • 14. 
    Position limits refer to which of the following:
    • A. 

      The minimum number of contracts held by one Exchange Participant or one customer for his own account.

    • B. 

      The maximum number of contracts held by one Exchange Participant for his own account or by one of his customers

    • C. 

      The weighted average number of contracts held by one customer for his own account.

    • D. 

      The maximum number of contracts held by one Exchange Participant across all principal and customer accounts

  • 15. 
    According to the Exchange Rules, which persons must apply for a personal access code to the Eurex system?
    • A. 

      A: Allexchangetraders

    • B. 

      B: All persons with back office and system administration duties

    • C. 

      C: Only senior traders

    • D. 

      D: Only exchange traders of foreign subsidiaries

  • 16. 
    Quotes within the order book for a certain product may be changed, but cannot be deleted.
    • A. 

      True

    • B. 

      False

  • 17. 
    Increasing the size of an order existing within the order book will not result in any change of its time priority within the order book.
    • A. 

      True

    • B. 

      False

  • 18. 
    Prior to entering a cross or prearranged trade into the Eurex Exchanges' system, it is always necessary to enter a cross request
    • A. 

      True

    • B. 

      False

  • 19. 
    According to the relevant regulations, exchange participants may have their proprietary orders in futures contracts executed against those of their customers.
    • A. 

      True

    • B. 

      False

  • 20. 
    Applications for cancellation of trades must be immediately reported to Eurex.
    • A. 

      True

    • B. 

      False

  • 21. 
    Where the reference price for the purpose of judging mistrades in options cannot be determined on the basis of market prices, Eurex is authorized to calculate a "fair" price, using an option pricing model, and to apply such price as an alternative reference price.
    • A. 

      True

    • B. 

      False

  • 22. 
    Which is (are) the objective(s) of the Pre-Opening Period?
    • A. 

      A: Opportunity for the last reaction to the market situation during the day

    • B. 

      B: Delay in the start of exchange trading

    • C. 

      C: Opportunity for participants to delete orders and quotes

    • D. 

      D: Opportunity for an initial reaction to the market situation

  • 23. 
    Which price is being displayed during the Pre-Opening Period in case of a crossed orderbook?
    • A. 

      Official opening price

    • B. 

      Previous day closing price

    • C. 

      Preliminary opening price

    • D. 

      No prices are displayed in the Pre-Opening Period

  • 24. 
    Which components does a strategy order for option contracts in the Eurex system consist of?
    • A. 

      Up to four individual orders to be executed simultaneously

    • B. 

      Simultaneous purchase and/or sale of option contracts of different option series

    • C. 

      Purchase of option contracts and sale of respective futures contracts

    • D. 

      Sale of option contracts and purchase of respective futures contracts

  • 25. 
    Which specification(s) must be present for an accepted combination order for futures contracts at the Eurex exchanges?
    • A. 

      Absolute price limits for the two component orders

    • B. 

      Priceindicationforthespread

    • C. 

      Validity specification

    • D. 

      No such specifications are necessary

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