PART 1 - When you enter into a futures contract you have a: right obligation it depends
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Question:
PART 1 - When you enter into a futures contract you have a:
right | ||
obligation | ||
it depends on whether you are long (bought) or short (sold). | ||
all of the above. |
PART 2 Using gasoline futures to hedge exposure to changes in the price of jet fuel is an example of:
speculating. | ||
swap-hedging. | ||
cross-hedging. | ||
swing hedging. |
PART 3 Speculators in futures markets provide liquidity which:
raises transaction costs. | ||
lowers transaction costs. | ||
increases excess volatility. | ||
causes panics and crashes. |
PART 4 You bought a put option for $5. The put option has a strike price of$50, and at expiration the stock is worth $60. What is your profit/loss?
loss of $15 | ||
loss of $5 | ||
profit of $10 | ||
profit of $15 |
Related Book For
Investment Analysis and Portfolio Management
ISBN: 978-0538482387
10th Edition
Authors: Frank K. Reilly, Keith C. Brown
Posted Date: