Derivatives Transactions

Question 1

“Protective put” is a position that is made by buying and holding an underlying security and purchasing a put option

Answer 1

Correct

Question 2

In trading futures and options listed on the stock exchange there is a margin system that requires a deposit to be made on the sale of the business day counting from the day on which the transaction took place

Answer 2

False

In trading futures and options listed on the stock exchange there is a margin system that requires a deposit to be made on the business day following the date on which the transaction to place

Question 3

In futures transactions of securities, a situation where futures price is lower than the spot price is called “futures sell at discount”

Answer 3

Correct

Question 4

In options transaction of securities the only value that exist in out of the money is the time value

Answer 4

Correct

Question 5

If an investor anticipates that the shares he holds will fall in price, he can take a buy position in the futures market and offset the losses suffered in the soit share market

Answer 5

False

If an investor anticipates that the share he holds we fall in price, he take a sell/short position in the futures market and offset the losses in the spot share market

Question 6

If an open position is not settled by offriront trade by then final trading day in 10y JGB futures transaction and mini- 10 year JGB futures transaction, they will be settled by either making or taking delivery or the underlying bond

Answer 6

False

If an open position is not settled by an offsetting trade by the final trading day in 10-year JGB futures transaction, it will be settled by either making or taking delivery of the underlying bond. In the case of min-trading, the settlement will be made only by net cash settlement at the price of a 10 year JGB

Question 7

When call options and put options of the same strike price are both purchased together in identical amounts, the loss will be limited

Answer 7

True

Question 8

Strike price of the option is called a premium

Answer 8

False

The cost of the option is called a premium, which is pre determined, specified price in order to exercise rights in options

Question 9

The process of determining the direction of the market by analyzing past market data, such as prices and volume to discern the direction the market will take in the future is called fundamental analysis

Answer 9

False

Called technical analysis