1. What is a characteristic of a forward?
(a) Traded on an exchange
(b) Negotiated with a counterparty
(c) Covers a stream of future payments
(d) Must be settled daily
2. What is a characteristic of a swap?
(a) Traded on an exchange
(b) Only interest rates can be the underlying
(c) Covers a stream of future payments
(d) Must be settled daily
3. What is a characteristic of a future?
(a) Gives the holder the right but not the obligation to buy or sell
(b) Negotiated with a counterparty
(c) Covers a stream of future payments
(d) Must be settled daily
4. What is a characteristic of a option?
(a) Gives the holder the right but not the obligation to buy or sell
(b) Negotiated with a counterparty
(c) Covers a stream of future payments
(d) Must be settled daily