Microeconomic Analysis
Derivatives
Derivatives
1
Microeconomic Analysis
Derivatives
Chapter 1
2
Microeconomic Analysis
Derivatives
Introduction
3
Microeconomic Analysis
Derivatives
Derivatives
A derivative security derives its value
from the price of ano
Chapter 5
Option Contracts Questions Solutions
Level 1
1. For a European call option X=25 and a European call option X=30 on the same stock with the
same time to expiration, the strongest statement we can make is the:
A. 25 call is worth more than the 30
Chapter 2
Forward Contracts Questions Solutions
Level 1
1. Which of the following is most accurate regarding derivatives?
A. Derivative values are based on the value of another security, index, or rate.
B. Exchange-traded derivatives are created and trade
Chapter 5
Option Contracts Problems Solutions
Level 1
1. An investor bought a 15 call for $14 on a stock trading at $20. If the stock is trading at $24 at
option expiration, what is the profit and the value of the call at option expiration?
Profit
Value o
Chapter 5
Option Contracts Problems
Level 1
1. An investor bought a 15 call for $14 on a stock trading at $20. If the stock is trading at $24 at
option expiration, what is the profit and the value of the call at option expiration?
Profit
Value of the Call
Microeconomic Analysis
Derivatives
Chapter 5
1
Microeconomic Analysis
Derivatives
Option Markets and
Contracts
2
Microeconomic Analysis
Derivatives
Description
An option contract gives its owner the
right, but not the legal obligation, to
conduct a trans
Chapter 5
Option Contracts Questions
Level 1
1. For a European call option X=25 and a European call option X=30 on the same stock with the
same time to expiration, the strongest statement we can make is the:
A. 25 call is worth more than the 30 call.
B. 3
Chapter 4
Swap Contracts Questions Solutions
Level 1
1. Which term does NOT apply to interest rate swaps?
A. Trading exchange.
B. Time to maturity.
C. Notional principal amount.
Interest rate swaps are currently not traded on exchanges.
2. Swap contracts
Chapter 4
Swap Contracts Questions Solutions
Level 1
1. Which term does NOT apply to interest rate swaps?
A. Trading exchange.
B. Time to maturity.
C. Notional principal amount.
2. Swap contracts typically:
A. Do not require a payment from either party at
Microeconomic Analysis
Derivatives
Chapter 4
1
Microeconomic Analysis
Derivatives
Swap Markets and
Contracts
2
Microeconomic Analysis
Derivatives
Swap Contracts: Overview
If A loans money to B for a fixed rate of
interest and B loans the same amount
to A
Chapter 3
Future Contracts Questions Solutions
Level 1
1. Standardized futures contracts are an aid to increased market liquidity because:
A. Standardization of the futures contract stabilizes the market price of the underlying
commodity.
B. Standardizati
Chapter 3
Future Contracts Questions
Level 1
1. Standardized futures contracts are an aid to increased market liquidity because:
A. Standardization of the futures contract stabilizes the market price of the underlying
commodity.
B. Standardization results
Microeconomic Analysis
Derivatives
Chapter 3
1
Microeconomic Analysis
Derivatives
Futures Markets and
Contracts
2
Microeconomic Analysis
Derivatives
Futures contracts
Futures contracts are very much like the
forward contracts , we learned about in the
pr
Chapter 2
Forward Contracts Questions
Level 1
1. Which of the following is most accurate regarding derivatives?
A. Derivative values are based on the value of another security, index, or rate.
B. Exchange-traded derivatives are created and traded by deale