quiz_1s08

quiz_1s08 - FIN459-659 An Introduction to Derivatives...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
FIN459-659 An Introduction to Derivatives Quiz#1 You have 30 minutes to complete the quiz. The quiz is open book, open notes, open calculator. No consulting with other students is allowed. Good luck! 1. (5 point) A derivative security is a financial contract that gives you control of a commodity. a. True b. False 2. (5 points) A stock option is not a derivative security because the commodity is a share of common stock. a. True b. False 3. (5 points) The value of the commodity controlled by a derivative security is: a. The derivative price b. The derivative margin c. The derivative notional value d. The derivative strike price 4. (5 points) High leverage means a. That large movements in the price of the commodity create large movements in the derivative price. b. That small movements in the price of the commodity create large movements in the derivative price. c. That small movements in the price of the commodity create large movements in the value of the derivative. d.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

quiz_1s08 - FIN459-659 An Introduction to Derivatives...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online