2011年CFA一级原版书

2011年CFA一级原版书

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1-17- Reading 68 1. For all parties involved, which of the following financial instruments is not an example of a forward commitment? A. Swap. B. Call option. C. Futures contract. 2. The main risk faced by an individual who enters into a forward contract to buy the S&P 500 Index is that: A. the market may rise. B. the market may fall. C. market volatility may rise. 3. Which of the following statements is most accurate? A. Forward contracts are marked to market daily. B. Futures contracts have more default risk than forward contracts. C. Forward contracts require that both parties to the transaction have a high degree of credit-worthiness. 4. Which of the following statements is least accurate? A. Futures contracts are easier to offset than forward contracts. B. Forward contracts are generally more liquid than futures contracts. C. Forward contracts are easier to tailor to specific needs than futures contracts. 5. A swap is best characterized as a: A. series of forward contracts. B. derivative contract that has not gained widespread popularity. C. single fixed payment in exchange for a single floating payment_ 6. Which of the following is most representative of forward contracts and contingent claims? Forward Contracts Contingent Claims A. Premium paid at inception Premium paid at inception B. Premium paid at inception No premium paid at inception C.
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2-17- 7. For the long position, the most likely advantage of contingent claims over forward commitments is that contingent claims: A. are easier to offset than forward commitments. B. have lower default risk than forward commitments. C. permit gains while protecting against losses. 8. For derivative contracts, the notional principal is best described as: A. the amount of the underlying asset covered by the contract. B. a measure of the actual payments made and received in the contract. C. tending to underestimate the actual payments made and received in the contract. 9. By volume, the most widely used group of derivatives is the one with contracts written on which of the following types of underlying assets? A. Financial. B. Commodities. C. Energy-related. 10. Which of the following is least likely to be a purpose served by derivative markets? A. Arbitrage. B. Price discovery. C. Risk management. 11. The most likely reason derivative markets have flourished is that: A. derivatives are easy to understand and use. B. derivatives have relatively low transaction costs. C. the pricing of derivatives is relatively straightforward. 12. A private transaction in which one party agrees to make a single fixed payment in the future and another party agrees to make a single floating payment in the future is best characterized as a(n): A. futures contract. B. forward contract.
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This note was uploaded on 11/02/2011 for the course FINANCE 612 taught by Professor Liyang during the Spring '11 term at Covenant School of Nursing.

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2011年CFA一级原版书

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