Answer: The third option is correct.
In the given options, futures on stock indices are cash
settled.
Which of the following are cash settled All futures contracts All option contracts Futures on stook...
Which of the following are cash settled All futures contracts All option contracts Futures on stook indices Futures on commodities
Consider the following statements regarding futures contracts that may be settled by delivery: (1) "The long initiates the delivery process" (2) "The short can choose when and how to settle the futures contracts" Both are correct Both are wrong (1) is correct and (2) is wrong (1) is wrong and (2) is correct
Why are relatively few futures contracts settled by delivery? explain in detail
QUESTION 117 Which of the following regarding futures contracts is least accurate? a. Futures contracts are less liquid than forward contracts. b. Futures contracts are marked-to-market. c. Futures contracts are traded on a regulated exchange. d. Futures contracts allow more delivery options than forward contracts. QUESTION 118 A long position in a futures contract expiring in November can be offset by: a. Selling a future contract expiring in November. b. Selling a future contract expiring anytime between September and December....
The derivatives markets contain different types of contracts. Forward contracts, futures contracts, options, and swaps are some common types of derivatives contracts. True or False: One of the major differences between futures and forward contracts is that forward contracts are revalued and marked-to-market daily, whereas futures contracts are traded on an organized exchange. O False True Which of the following are used to hedge against fluctuating interest rates, stock prices, and exchange rates? Commodity futures Financial futures O Ahmad feels...
Insofar as forward contracts and futures exchange contracts are concerned: Multiple Choice delivery of the underlying asset is seldom made with forward contracts, but usually made with futures contracts. None of the options. forward contracts are daily marked to market while futures contracts are settled at maturity. delivery of the underlying asset is seldom made with futures contracts and usually made with forward contracts. futures contracts are customized while forward contracts are standardized.
30. Which of the following is true? A. Both forward and futures contracts are traded on exchanges Porward contracts are traded on exchanges, but futures contracts are not. Futures contracts are traded on exchanges, but forward contracts are not. D: Neither futures contracts nor forward contracts are traded on exchanges. 2. Long answer questions (25 points) Note: write down the necessary st eps; round the answer to two decimal points, e g . 0.45%. (1) The following table gives the...
11. A firm has the following cash settled forward contracts in place on a single asset, asset A. The contracts were put on at various points in the past, but all the contracts expire one year from today. Today’s spot price of the asset is $100. Riskfree is 3%. The firm will purchase 120 units. Contract details: Long/Short FWD Price units in contract long 80 100 short 106 200 long 100 100 What is the value of the contracts today?
Which of the following statements is most accurate?Briefly explain A. Futures contracts could be private transactions. B. Forward contracts marked to market daily are futures contracts. C. A Forward contract could have the same liquidity as a Futures contracts. D. Futures contracts require that both parties to the transaction have a high degree of creditworthiness.
Which of the following statements is least accurate?Briefly explain A. Futures contracts are generally more liquid than forward contracts. B. Forward contracts cannot be offset unlike futures contracts. C. Forward contracts are easier to tailor to specific needs than futures contracts. D. Futures contracts are characterized by having a clearinghouse as an intermediary.