Exam 22: Futures Markets

Which of the following statements regarding delivery is false I. Most futures contracts result in actual delivery. II. Only 1% to 3% of futures contracts result in actual delivery. III. Only 15% of futures contracts result in actual delivery.

On January 1, the listed spot and futures prices of a Treasury bond were 95.4 and 95.6.You sold $100,000 par value Treasury bonds and purchased one Treasury bond futures contract.One month later, the listed spot price and futures prices were 95 and 94.4, respectively.If you were to liquidate your position, your profits would be

Given a stock index with a value of $1,100, an anticipated dividend of $27, and a risk-free rate of 3%, that should be the value of one futures contract on the index

Agricultural futures contracts are actively traded on

Given a stock index with a value of $1,125, an anticipated dividend of $33, and a risk-free rate of 4%, what should be the value of one futures contract on the index

You hold one long oil futures contract that expires in April.To close your position in oil futures before the delivery date you must

Financial futures contracts are actively traded on which of the following indices

A trader who has a __________ position in gold futures wants the price of gold to __________ in the future.

Metals and energy currency futures contracts are actively traded on

The open interest on silver futures at a particular time is the

Taxation of futures trading gains and losses

To hedge a short position in Treasury bonds, an investor most likely would

With regard to futures contracts, what does the word "margin" mean

An increase in the basis will __________ a long hedger and __________ a short hedger.

Describe the differences between futures and forward contracts.

Interest rate futures contracts are actively traded on the

Which of the following statements is false I. The maintenance margin is the amount of money you post with your broker when you buy or sell a futures contract. II. If the value of the margin account falls below the maintenance margin requirement, the holder of the contract will receive a margin call. III. A margin deposit can only be met with cash. IV. All futures contracts require the same margin deposit.

Contango

On January 1, you sold one April S&P 500 Index futures contract at a futures price of 1,420.If on February 1 the April futures price were 1,430, what would be your profit (loss) if you closed your position (without considering transactions costs)

Financial futures contracts are actively traded on which of the following indices