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