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Test

FIXING INSTRUMENTS AND OPTIONS

f.yafai 13 preguntas

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Preguntas del test (13)

  1. 1In February, a corporate wishes to fix the price of wheat required for three months' time. The corporate purchases 100 May wheat futures contracts at US $794.0 and sells them again in May for US$ 854.00. An initial margin of US$50.00 was paid on each contract.
    What was the net total amount paid or received by the corporate on closure of the contracts in May? Assume an profit or loss on these contracts is settled in full on close out.
    1. Apay $1,000
    2. Bpay $5,000
    3. Cpay $6,000
    4. Dreceive $5,000
    5. Ereceive $6,000
    6. Freceive $11,000
  2. 2X buys futures contract and Y sells a futures contract. Neither have previously transacted in futures,. Initial margin is payable by:
    1. ABoth X and Y
    2. BX only
    3. CY only
    4. DNeither X nor Y
  3. 34 Platinum futures contracts, each for 50 ounces, were sold at 920.1 per ounce and closed out one month (30 days) later at 935.9. What is the best estimate of the total value variation margin on the deal?
    The total value of the variation margin is the total net gain or loss on the futures contracts.
    1. A3,160 received
    2. B63,20 received
    3. C15.80 paid or received
    4. D6,320 paid
    5. E3,150 paid
  4. 4A company has a floating-for-fixed swap with net settlement every 6 months. The net settlement paid on 1 January 2009 is calculated using 6-moth LIBOR set on:
    1. A1 January 2008
    2. B1 July 2008
    3. C1 January 2009
    4. D1 July 2009
  5. 51st January X8: Company AB borrows £100,000 under a 5-year bank loan linked to 6-month LIBOR plus 50 basis points.
    1st January X8: 5 year semi-annual fixed rate swap rate is 6% against 6-month LIBOR
    Outturn 6 month LIBOR rates were as follows
    1st January X8 5.0%
    1st July X8 5.5%
    1st January 6.1%
    Assume that company AB enters into a 5 year £100,000 fixed for floating swap on 1st January. What is the net payment or receipt under the swap contract on 1st July X8?
    1. APay £250
    2. BPay £500
    3. CReceive £250
    4. DReceive £500
    5. EReceive £750
  6. 6It is true that financial futures contracts:
    1. Aare normally held to delivery
    2. Brequire an initial margin to protect the company against clearing house counterparty risk
    3. Ccan be tailored to a customer specific delivery date, but are over fixed contract amounts
    4. Dare transparently priced
  7. 7A coffee importer buys a call option over 10,000 kg of coffee at a price of USD 2.68 per kg for a premium of USD 0.25 per kg. On expiry the market price for coffee is USD 2.50 per kg, the company should:
    1. Aexercise the option sand relies a profit
    2. Bexercise the option sand relies a loss
    3. Ctake delivery of the coffee under the option contract
    4. Dlet the option lapse and buy the coffee on the open market
  8. 8A UK food manufacture buys 200,000 liters of soys oil at USD 0.18 per litre with payment due in nine months's time and enters into a nice month forward contract to purchase USD at GBP/USD 2.1500. The best estimate of the hedged GBP c pst of the soys oil is
    1. A17,000
    2. B36,000
    3. C52,000
    4. D77,000
  9. 9Under a financial put option
    1. Athe buyer has the right to buy and the writer has the obligation to buy
    2. Bthe buyer has the right but not the obligation to to buy and the writer has the obligation to sell
    3. Cthe buyer has the right to sell and the writer has the obligation to buy
    4. Dthe seller has the right but not the obligation to to sell and the writer has the obligation to sell
  10. 10An American put option gives the holder the right:
    1. Ato buy the physical on a certain date for a certain price
    2. Bto sell the physical on a certain date for a certain price
    3. Cto buy the physical at any time up to expiry date for certain price
    4. Dto sell the physical at any time up to expiry date for certain price

Información

Descripción
FRM FRM Test sobre FIXING INSTRUMENTS AND OPTIONS, creado por f.yafai el 26/10/2013.
Autor
f.yafai
Idioma
English
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