Take Test: Quiz 10 (Lecture 11) 49098-2017-AUTUMN-CITY https://online.uts.edu.au/webapps/assessment/take/launch.jsp?course_ass...

Applied Financial Management Autumn 2017 49098-2017-AUTUMN-CITY Quizzes

Take Test: Quiz 10 (Lecture 11)

Test Information
Description Quiz 10 is based on lecture 11 Derivatives. There are 2 attempts only for each
quiz. Each attempt has a time limit of 1 hour. Each quiz has a weight of 2% of the
total mark. The quiz deadline is on Monday (5 June) at 5pm.

Instructions
Timed Test This test has a time limit of 1 hour.This test will save and submit automatically when
the time expires.
Warnings appear when half the time, 5 minutes, 1 minute, and 30 seconds
remain.
Multiple This test allows 2 attempts. This is attempt number 1.
Attempts
Force This test can be saved and resumed at any point until time has expired. The timer
Completion will continue to run if you leave the test.

QUESTION 1

Long position in forwards contract makes a gain when underlying asset prices
exercise price.
Fall below

Rise above

Unchanged compared to

None of the above

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Long position in forwards contract makes a loss when underlying asset prices
Fall

Rise

Unchanged

None of the above

QUESTION 3

Short position in forwards contract makes a gain when underlying asset prices
exercise price.
Fall below

Rise above

Unchanged

None of the above

QUESTION 4

Short position in forwards contract makes a loss when underlying asset prices
Fall

Rise

Unchanged

None of the above

QUESTION 5

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is acquiring excessive risk to make abnormal profit.

Hedging

Speculation

None of the above

QUESTION 6

is eliminating or reducing existing risk in the underlying asset.

Hedging

Speculation

None of the above

QUESTION 7

Forward contracts are traded while future contracts are traded

In exchange Over the counter

Over the counter In exchange

Over the counter Over the counter

QUESTION 8

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Forward contracts are while future contracts are

Customised Standardised

Standardised Customised

Standardised Standardised

QUESTION 9

Forward contracts have while future contracts have credit risk.

High Low

Low High

Low Low

QUESTION 10

risk is when there is no futures contract for the commodity you want to hedge,
so you hedge a similar commodity.
Basis risk

Contract size

Cross commodity hedging

Margin risk

Save All Answers Save and Submit

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55 minutes,05 seconds.
Remaining Time:

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