[go: up one dir, main page]
Scribd
Upload
30 views3 pages

Grenoble Ecole de Management: MSC Finance - Derivatives (Prof. Fabio de Castro)

Uploaded by

Yona Jmt

This document contains a practice exam for a derivatives course. It includes 5 multiple choice questions testing understanding of key differences between forward and futures contracts. Specifically, it addresses how futures contracts are standardized, involve clearing houses, have delivery or cash settlement at maturity for short futures contracts, and how hedging with futures contracts works. The student is asked to show work and explain their thinking for the multiple choice responses.

Copyright:

© All Rights Reserved
Download as DOCX, PDF, TXT or read online from Scribd
Download as docx, pdf, or txt

Grenoble Ecole de Management: MSC Finance - Derivatives (Prof. Fabio de Castro)

Uploaded by

Yona Jmt
30 views3 pages
This document contains a practice exam for a derivatives course. It includes 5 multiple choice questions testing understanding of key differences between forward and futures contracts. Specifically, it addresses how futures contracts are standardized, involve clearing houses, have delivery or cash settlement at maturity for short futures contracts, and how hedging with futures contracts works. The student is asked to show work and explain their thinking for the multiple choice responses.

Original Description:

Derivatives answers

Original Title

Derivatives question

Copyright

© © All Rights Reserved

Available Formats

DOCX, PDF, TXT or read online from Scribd

Did you find this document useful?

Is this content inappropriate?

This document contains a practice exam for a derivatives course. It includes 5 multiple choice questions testing understanding of key differences between forward and futures contracts. Specifically, it addresses how futures contracts are standardized, involve clearing houses, have delivery or cash settlement at maturity for short futures contracts, and how hedging with futures contracts works. The student is asked to show work and explain their thinking for the multiple choice responses.

Copyright:

© All Rights Reserved
Download as DOCX, PDF, TXT or read online from Scribd
Download as docx, pdf, or txt
30 views3 pages

Grenoble Ecole de Management: MSC Finance - Derivatives (Prof. Fabio de Castro)

Uploaded by

Yona Jmt
This document contains a practice exam for a derivatives course. It includes 5 multiple choice questions testing understanding of key differences between forward and futures contracts. Specifically, it addresses how futures contracts are standardized, involve clearing houses, have delivery or cash settlement at maturity for short futures contracts, and how hedging with futures contracts works. The student is asked to show work and explain their thinking for the multiple choice responses.

Copyright:

© All Rights Reserved
Download as DOCX, PDF, TXT or read online from Scribd
Download as docx, pdf, or txt
You are on page 1/ 3

Grenoble Ecole de Management

MSc Finance – Derivatives (Prof. Fabio De Castro)


Control Continuous - February 2022

Name:_JUMONTIER Yona Date: 18/02 Grade: ____ / 20

Instructions to solve the problems:


1) You are expected to show all formulas and intermediary calculations.
2) Explain your thinking process, not just numbers.
3) Avoid “scratches” as much as possible. Clean and proper work will facilitate the comprehension
of your solutions.

Multiple choice questions: Only 1 answer is accepted. (1 point each = 5 points)

1. Which of the following is not true:

a. Futures contracts nearly always last longer than forward contracts


b. Futures contracts are standardized; forward contracts are not.
c. Delivery or final cash settlement usually takes place with forward contracts; the same
is not true of futures contracts.
d. Forward contract usually have one specified delivery date; futures contract often have
a range of delivery dates.

Clearing houses are


2.

A. Never used in futures markets


and sometimes used in OTC
markets
B. Used in OTC markets, but not
in futures markets
C. Always used in futures
markets and sometimes used in
OTC markets
D. Always used in both futures
markets and OTC markets
Clearing houses are
A. Never used in futures markets
and sometimes used in OTC
markets
B. Used in OTC markets, but not
in futures markets
C. Always used in futures
markets and sometimes used in
OTC markets
D. Always used in both futures
markets and OTC markets
2. Clearing houses are :
a. Never used in futures markets and sometimes used in OTC markets
b. Used in OTC markets, but not in futures markets
c. Always used in futures markets and sometimes used in OTC markets
d. Always used in both futures markets and OTC markets

3. Which of the following correctly provides the profit to a short futures contract at maturity?

a. Initial futures price - Spot price at maturity


b. Spot price at maturity - Initial futures price
c. Zero
d. Basis

4. A company which mines bauxite decides to short aluminum futures. This is an example of
__________ to limit its risk. 

a. Cross hedging
b. Long hedging
c. Perfect hedging
d. Short speculation
5. Which of the following is true:
a. Both forward and futures contracts are traded on exchanges.
b. Forward contracts are traded on exchanges, but futures contracts are not.
c. Futures contracts are traded on exchanges, but forward contracts are not.
d. Neither futures contracts nor forward contracts are traded on exchanges.

You might also like