A. Which of the following statements is (are) correct? More than one answer is p

ID: 1175319 • Letter: A

Question

A. Which of the following statements is (are) correct? More than one answer is possible.

Futures contracts are marked to market daily.

Forward contracts are default free.

Goods rarely are delivered on futures contracts.

Futures contracts don't have any margin requirements.

B. Which of the following are types of financial derivatives? More than one answer is possible.

Currency Swap

Call option on IBM stock

Future on Oil

L’Hospital’s Rule

Futures contracts are marked to market daily.

Forward contracts are default free.

Goods rarely are delivered on futures contracts.

Futures contracts don't have any margin requirements.

B. Which of the following are types of financial derivatives? More than one answer is possible.

Currency Swap

Call option on IBM stock

Future on Oil

L’Hospital’s Rule

1)correct option is "C" -Goods rarely are delivered on futures contracts.

Future contracts are settled on cash basis .there is rarely a transfer of goods involved.

2)correct option is " "A , B and "C"

Futures ,swaps and options are the example of financial derivatives.

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