Question 2 The characteristics of a future market are: Not yet answered Select o

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Question 2 The characteristics of a future market are: Not yet answered Select one: Marked out of 1,00 a Booking Date and Clearing date are different P Flag question Ob. Leverage O c Need an underlying asset O d All of them Question 3 In the Future Market, the Clearing house always: Not yet answered Select one Marked out of 1.00 F Rlag question O a. It Acts as counterparty to every transaction P Flag question b. All of them O c It helps to eliminate the accumulation of losses or debt O d. It is responsible for marking positions to market Question 4 Forward contracts are: Not yet answered Select one Marked out of 1.00 Oa Private contracts Flag question b. Legally binding O c. Not standard contracts O d All of them

Explanation / Answer

1)

All of them

Traders can use leverage to trade in futures market. Futures require an underlying asset. the futures price depends on the price of underlying asset. Booking and clearing dates are different.

2)

All of them

Clearing houses take the opposite position of each side of a trade. It is also responsible for marking positions to market. It also helps to elimate the acculuantion of losses through mantainence margin.

3)

All of them

Forward contract is an over the counter product which is a private agreement between two parties. It is also legally binding and is not a standard contract.

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