Post Session Quiz - Introduction To Derivatives

7 Questions | Total Attempts: 206

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Introduction Quizzes & Trivia

Questions and Answers
  • 1. 
    An OTC derivative are
    • A. 

      Customized, privately negotiated contract that is traded directly between counterparties

    • B. 

      Centralised trading products

    • C. 

      Standardised products

    • D. 

      Without any credit risk

  • 2. 
    An Exchange Traded derivative is a contract which has
    • A. 

      Standardised features

    • B. 

      Greater transperancy

    • C. 

      Settlement months specified

    • D. 

      All the options

    • E. 

      Credit risk borne by the exchange

  • 3. 
    Which is the highest traded derivative in the market gobally?
    • A. 

      Interest rate derivatives

    • B. 

      Credit derivatives

    • C. 

      Equity derivative

  • 4. 
    In brazil , more than 80 % of the interdealer derivatives trading happens through Exchanges ?
    • A. 

      True

    • B. 

      False

  • 5. 
    Globally , OTC Market is bigger than the Exchange traded derivatives market , unlike Brazil , where the opposite is true.
    • A. 

      True

    • B. 

      False

  • 6. 
    Which of the following derivative are used for managing the default Risk ? (can choose more than one option)
    • A. 

      CDS

    • B. 

      Credit Spread options

    • C. 

      Index Futures

    • D. 

      Equity options

  • 7. 
    What are the major uses of derivatives products? ( can choose more than one option)
    • A. 

      Hedging risk

    • B. 

      Leveraging effect

    • C. 

      Speculation

    • D. 

      Arbitrage

    • E. 

      Delivery

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