20. 1. Arbitrage helps arket being more efficient Two assets with identical payoffs to approa C. Earning positive profit to approach the same prices D. All above E. None above financial derivate product? 2. Which one of the following is NOT a financial de A. FRA B. Bond forward C. Gambling D. Currency futures E. All the above are financial derivates 3. What do the short party do in a forward contract? A. Pay cash and receive the underlying asset B. Pay cash and deliver the underlying asset c. Receive cash and receive the underlying asset D. Receive cash and deliver the underlying asset E. None Above lowing features distinguish futures markets from forwards markets? 4. Which of the following features distinguish fut A. Standardization of contracts. B. The use of margin accounts to manage risk. C. Ease in reversing positions. D. All of the above. E. None above 5. When a counterparty to a futures contract fails to perform under the contract, A. The futures exchange informs the party on the other side of the amount of loss they will bear. B. The futures exchange bears the loss C. The futures exchange sues the failed counterparty