Q 1. What distinguishes exchange-traded derivatives from Over-the-counter (OTC) derivatives?
Q 2. What is one of the factors contributing to the growth of the derivatives market globally?
Q 3. Which of the following is NOT considered an underlying asset for derivatives?
Q 4. How do exchange-traded contracts differ from Over-the-counter (OTC) contracts in terms of risk management?
Q 5. What is the primary motivation for traders/speculators to engage in derivatives trading?
Q 6. What were sellers doing at European trade fairs in the 12th century related to derivatives?
Q 7. What role does the derivatives market play in price discovery?
Q 8. When did the Chicago Board of Trade (CBOT) list the first "exchange traded" derivative contract in the US?
Q 9. Which type of market participant prefers derivatives over underlying assets for trading purposes?
Q 10. What significant event in 1919 influenced the development of derivatives trading?
Q 11. What risk is associated with the inability to exit a position in the derivatives market?
Q 12. Which type of contract involves the exchange of cash flows according to a prearranged formula?
Q 13. How is counter-party (credit) risk managed in Over-the-counter (OTC) derivatives markets?
Q 14. What risk arises from the potential default by a counterparty in the derivatives market?
Q 15. Which exchange introduced the first marketplace for trading listed options in 1973?
Q 16. What distinguishes swaps from other derivative contracts?
Q 17. What is emphasized as an important consideration for market participants in the derivatives market?
Q 18. What was the significance of the introduction of Treasury bill futures contract by CBOT in 1975?
Q 19. What contributes to the growth of Over-the-counter (OTC) derivatives markets?
Q 20. What role did the committee chaired by Prof. J. R. Varma play in the development of derivatives trading in India?
Q 21. Which type of derivative contract is typically customized to the needs of the parties involved?
Q 22. How did the Securities Contract Regulation Act (SCRA) amendment in 1999 impact derivatives trading in India?
Q 23. What risk disclosure document is advised for market participants in the derivatives market?
Q 24. Which exchange launched the first stock index futures in 1982?
Q 25. What aspect of the derivatives market contributes to the stability of the financial system?
Q 26. What was the purpose of the futures market in rice developed at Dojima, Japan, in the late 17th century?
Q 27. Which type of derivative contract is traded on an exchange and standardized in terms of lot size and maturity date?
Q 28. What factor contributed to the growth of derivatives trading in India, as mentioned in the text?
Q 29. What market participants are encouraged to carefully consider whether derivatives trading is suitable for them?
Q 30. Which type of derivative contract gives the holder the right, but not the obligation, to buy or sell the underlying asset?
Sign-up with Google