Financial markets

Question 1

Put option

Answer 1

Right to sell shares

Question 2

Short future

Answer 2

Bet that price will fall

Question 3

4 major financial markets

Answer 3

1 equity

2. debt
3. fx
4. derivatives

Question 4

Bond market (2syn. )

Answer 4

1. Debt capital market

2. Fixed income market

Question 5

Well functioning , active and competitive financial markets

Answer 5

1. high transparency with respect to market nformation
2. high liquidity
3. low bid-offer spreads
4. low transaction costs