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8 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the term for the initial deposit required to enter into a futures contract?
Initial margin
Maintenance margin
Margin call
Settlement price
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following is true about forward contracts?
They are marked to market daily.
They are settled at the end of the contract.
They are traded on regulated exchanges.
They are standardized agreements.
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
If a trader expects the price of an asset to fall, what position should they take in a futures contract?
Long position
Short position
Neutral position
Hedge position
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What does "marking to market" mean in the context of futures contracts?
Adjusting the contract size based on market conditions.
Closing out a contract before its expiration date.
Settling gains and losses on a daily basis.
Locking in a fixed price for future delivery.
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What happens if the price of an asset increases after a trader has entered into a long futures contract?
The trader will incur a loss.
The trader will gain profit.
The trader will be required to increase the margin.
The contract will be cancelled.
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
A company wants to hedge against rising oil prices. Which of the following should it use?
A short futures contract on oil
A long futures contract on oil
A hedge futures agreement on oil
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
In futures trading, what is a "margin call"?
A demand by the broker for additional funds to maintain the margin account.
A call option on futures contracts.
A request to close out a futures position.
An alert for the expiration date of a futures contract.
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