1. A forward contract is not traded on an exchange while a futures contract may be traded privately on an exchange.

Select one:

True

False

2. As it relates to the derivative market in the money refers to when the speculator is experiencing a profit while at the money refers to break-even.

Select one:

True

False

3. Gross revenue on a derivative takes into account the strike price as well as the premium only.

Select one:

True

False

4. A European option can be exercised on all dates before the expiration date.

Select one:

True

False

5. International parity conditions act as a link for interest rate, price level, and exchange rate

Select one:

True

False