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Derivatives Trivia Quiz

A few questions about derivatives.

A multiple-choice quiz by gray_blur. Estimated time: 5 mins.

Author
gray_blur

Time
5 mins

Type
Multiple Choice

Quiz #
25,936

Updated
Dec 03 21

# Qns
10

Difficulty
Difficult

Avg Score
4 / 10

Plays
1099

One at a Time - Single Page - Timed Game

Question 1 of 10

1. Which of the following is private contract? Hint

Futures

Options on Futures

Options

Forwards

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Question 2 of 10

2. Which is a type of broker? Hint

trader

speculator

hedger

account executive

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Question 3 of 10

3. The most important benefit to society of the futures market Hint

Speculation

price discovery

Arbitrage

Hedging

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Question 4 of 10

4. Type of option that is easier to analyze or trade Hint

Euro

American

European

Candian

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Question 5 of 10

5. Treasury options are traded on which exchange Hint

New York

Phildelphia

Chicago

American

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Question 6 of 10

6. Which option type has the largest open volume? Hint

Index

Stock

Foreign currency

Options on Futures

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Question 7 of 10

7. If trading gets crazy the last few minutes of trading, the closing price will be set by the Hint

executive council

settlement committee

clearing center

direct clearing group

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Question 8 of 10

8. Option that can be exercised before or at the time of expiration Hint

Euro

European

American

Canadian

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Question 9 of 10

9. The basis will usually be wider for Hint

more distant contracts

the same for all contracts

less distant contracts

uncorrelated with distance

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Question 10 of 10

10. Under the theory of normal backwardation, futures prices will tend to rise over the life of a contract because ____________ tend to be Hint

speculators, long the futures market

hedgers, long the futures market

hedgers, short the futures market

speculators, short the futures market

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Quiz Answer Key and Fun Facts

1. Which of the following is private contract?

Answer: Forwards

2. Which is a type of broker?

Answer: account executive

3. The most important benefit to society of the futures market

Answer: Hedging

4. Type of option that is easier to analyze or trade

Answer: European

5. Treasury options are traded on which exchange

Answer: Chicago

6. Which option type has the largest open volume?

Answer: Stock

7. If trading gets crazy the last few minutes of trading, the closing price will be set by the

Answer: settlement committee

8. Option that can be exercised before or at the time of expiration

Answer: American

9. The basis will usually be wider for

Answer: more distant contracts

10. Under the theory of normal backwardation, futures prices will tend to rise over the life of a contract because ____________ tend to be

Answer: hedgers, short the futures market

Source: Author gray_blur

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