Free ICBRR Exam Braindumps (page: 15)

Page 15 of 87

Which one of the following statements about futures contracts is correct?

I) Futures contracts are subject to the same risks as the underlying instruments.
II) Futures contracts have additional interest rate risk die to the future delivery date.
III) Futures contracts traded in a clearinghouse system are exposed to credit risk with numerous counterparties.

  1. I
  2. I, III
  3. II, III
  4. I, II, III

Answer(s): A



Which one of the following four options is NOT a typical component of a currency swap?

  1. An initial currency exchange of the notional amount
  2. Denomination of the original notional amount into a foreign currency
  3. Periodic exchange of interest payments in different currencies
  4. A final currency exchange

Answer(s): B



An options trader is assessing the aggregate risk of her currency options exposures. As an options buyer, she can potentially ___ lose more than the premium originally paid. As an option seller, however, she has a ___ risk on the contract and always receives a premium.

  1. Never, unlimited
  2. Sometimes, unlimited
  3. Never, limited
  4. Sometimes, limited

Answer(s): A



Which one of the following four statements correctly defines a non-exotic call option?

  1. A call option gives the call option buyer the obligation, but not the right, to buy the underlying instrument at a known price in the future.
  2. A call option gives the call option buyer the obligation, but not the right, to sell the underlying instrument at a known price in the future
  3. A call option gives the call option buyer the right, but not the obligation, to buy the underlying instrument at a known price in the future
  4. A call option gives the call option buyer the right, but not the obligation, to sell the underlying instrument at a known price in the future

Answer(s): C



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Vey commented on May 27, 2023
highly appreciate for your sharing.
CAMBODIA
upvote

Vey commented on May 27, 2023
Highly appreciate for your sharing.
CAMBODIA
upvote