0 of 17 Questions completed
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading…
You must sign in or sign up to start the quiz.
You must first complete the following:
0 of 17 Questions answered correctly
Time has elapsed
You have reached 0 of 0 point(s), (0)
Earned Point(s): 0 of 0, (0)
0 Essay(s) Pending (Possible Point(s): 0)
Closing out is not an issue with futures and forward contracts as most of them are closed before delivery?CorrectIncorrect
Most futures contracts are settled as:CorrectIncorrect
RelGold is a gold bullion making company. It is setting up a new plant which will be operative in next 2 years. Which contract RelGold should enter for supply of gold as raw material fulfilling their preferences.CorrectIncorrect
A trader wishes to buy ABC stock at $10. It is currently trading at $8. Which order can be placed to buy?CorrectIncorrect
A trader wishes to buy at his/her own price, different from current market price. Which order needs to be placed?CorrectIncorrect
In case of shorting a stock, what kind of order should we place to reduce risk of price increase?CorrectIncorrect
Which kind of order may end up with trader buying/selling at price above/below expectations?CorrectIncorrect
If the future price is below spot price and if you want to buy the asset, which of the option you would choose for maximising profit.CorrectIncorrect
Futures price __________ spot prices as they reach maturity.CorrectIncorrect
Future contracts delivery can be made anytime during the delivery month.CorrectIncorrect
Aryan and Vishal had entered a gold contract and Aryan was long whereas Vishal was the seller. At the time of delivery, Vishal choose to deliver inappropriate quality of gold which is way below expectations of Aryan. Aryan is left with no choice, denies the delivery of contract but since he is long, he must honour the contract.CorrectIncorrect
Seller of a future contract has right to choose in the contract. Which of the following is not determined by seller?CorrectIncorrect
Aryan taking short position in a Gold contract wants to specify that it will be 24 karat gold only. What contract he should enter?CorrectIncorrect
Read the following statements and choose the correct option:
Statement 1: The number of contracts traded in a day are called as trading volume.
Statement 2: Trading volume can never be greater than the open interest.CorrectIncorrect
When trading in a contract occurs, the open interest is one?CorrectIncorrect
The number of future contracts open at any time is referred to as open interest.CorrectIncorrect
Read the following statements on operation of exchanges and choose the correct option.
Statement 1: Contracts are standardized and exchange CCP’s is counterparty to every trade.
Statement 2: Trades are settled by margins flowing from one member to another member in a trade.
Statement 3: Members post initial margin and contribute to default fund as well.
Statement 4: Positions can be closed by entering offsetting trades.CorrectIncorrect