Futures contract questions and answers

sample final exam questions derivative instruments have the following A futures trader has a short position in a copper futures contract with an initial m argin of. For superior learning take Vskills test on Forward Contract with MCQ on forward contracts, forward market, standardized item, spot basis and forward price Now!

Futures contracts are: a. the same as forward contracts. b. standardized contracts to make or take delivery of commodity at a predetermined place and time. c. contracts with standardized price terms. d. all of the above. Futures contracts give the buyer an obligation to purchase an asset (and the seller an obligation to sell an asset) at a set price at a future point in time. See the answer. Futures Contracts. Like options, futures contracts offer alternative investment possibilities. Futures contracts can be used to increase risk and return and to decrease risk and return. The level of risk or return will depend on whether the future contracts are used for hedging or for speculating. Answer to Suppose you enter into a long 3-month futures contract with F=1,919. What is the payoff in 6 month, if the spot price ju What is the payoff in 6 month, if the spot price ju Skip Navigation finance questions and answers A Single Stock Futures Contract On A Non-dividend Paying Stock With Current Price $110 Has Question: A Single Stock Futures Contract On A Non-dividend Paying Stock With Current Price $110 Has A Maturity Of One Year. A. A futures contract is a legal agreement to buy or sell a particular commodity or asset at a predetermined price at a specified time in the future. Futures contracts are standardized for quality and quantity to facilitate trading on a futures exchange. Correct Answer: B. The price of a futures contract will equal the price of an otherwise equivalent forward contract one day prior to expiration. At this time point both the futures and forward contracts have one day to go. At expiration they will both settle. Therefore these contracts are the same. At the contract initiation date the value of a futures and forward contracts are both 0, and their prices should equal to each other.

The amount is established by the exchange and is a percentage of the value of the futures contract. For example, a crude oil contract futures contract is 1,000 barrels of oil. At $75 per barrel, the notional value of the contract is $75,000. A trader is not required to place this amount into an account.

I. Short 1 forward contract. II. Short 1 call option. III. Short 1 put option. (A) None. ( B) I and II only. (C) I and III only. (D) II and III only. (E) The correct answer is not  Question: What determines forward and futures prices? Answer: Forward/futures prices are linked to spot prices. Contract Spot at t Forward Futures. Price. Answer: C. Question Status: Previous Edition. 4) Which of the following is not a financial derivative? (a) Stock. (b) Futures. (c) Options. (d) Forward contracts. A trader buys two July futures contracts on frozen orange juice. Each contract is The simple answer to this question is that the treasurer should 1. Estimate the  sample final exam questions derivative instruments have the following A futures trader has a short position in a copper futures contract with an initial m argin of. For superior learning take Vskills test on Forward Contract with MCQ on forward contracts, forward market, standardized item, spot basis and forward price Now! Questions and answers about the ASX block trading facility. futures contracts, block trades will only be available for the 'spot' contract and will not be permitted  

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Futures contracts are: a. the same as forward contracts. b. standardized contracts to make or take delivery of commodity at a predetermined place and time. c. contracts with standardized price terms. d. all of the above.

Answer: C. Question Status: Previous Edition. 4) Which of the following is not a financial derivative? (a) Stock. (b) Futures. (c) Options. (d) Forward contracts.

For general account questions, including opening an account or trading, please visit General Account Questions. What futures contracts are eligible for reduced  The majority of commodity trades in the commodity market are sold as a futures contract. What this means is that both sides of the trade agree upon a future date,   But futures contracts are not designed to be used for hedging, they are much In answer to your question “What fundamental differences are there between a 

2.13. An investor enters into two long futures contracts on frozen orange juice. Each contract is for the delivery of 15,000 pounds. The current futures price is 160 cents per pound; the initial margin is $6,000 per contract; and the maintenance margin is $4,500 per contract. What price change would lead to a margin call?

The majority of commodity trades in the commodity market are sold as a futures contract. What this means is that both sides of the trade agree upon a future date,  

A trader buys two July futures contracts on frozen orange juice. Each contract is The simple answer to this question is that the treasurer should 1. Estimate the  sample final exam questions derivative instruments have the following A futures trader has a short position in a copper futures contract with an initial m argin of. For superior learning take Vskills test on Forward Contract with MCQ on forward contracts, forward market, standardized item, spot basis and forward price Now!