Future & Options Quiz [ 100+ Quiz with Answers ]

Derivative Market

Multiple Choice— Select the option that best completes the sentence or provides the answer to the question.
  1. __________ gives the option holder a right to buy an underlying asset at an exercise price in future.

  2. An instrument which derives its value from an asset backing it is called __________.

  3. __________ contracts are not at all standardized.

  4. The trader who promises to buy in __________ contract is said to be in ‘long position’.

  5. In __________ contract the seller is referred to as a ‘writer’.

  6. Which of the following is considered as means off balance sheet financing?

  7. Financial __________ are mainly used for hedging risk.

  8. The pre‐ determined price at which an underlying asset has to be bought or sold is an option contract is called __________.

  9. __________ contracts are standardized.

  10. A combination of forwards by 2 counter‐parties with opposite but matching need is called __________.

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