Derivative Market
Multiple Choice— Select the option that best completes the sentence or provides the answer to the question.
- __________ gives the option holder a right to buy an underlying asset at an exercise price in future.
- An instrument which derives its value from an asset backing it is called __________.
- __________ contracts are not at all standardized.
- The trader who promises to buy in __________ contract is said to be in ‘long position’.
- In __________ contract the seller is referred to as a ‘writer’.
- Which of the following is considered as means off balance sheet financing?
- Financial __________ are mainly used for hedging risk.
- The pre‐ determined price at which an underlying asset has to be bought or sold is an option contract is called __________.
- __________ contracts are standardized.
- A combination of forwards by 2 counter‐parties with opposite but matching need is called __________.
