Quiz CompetitionChapter 6

Market for currency future

Group Members

MBA VI

Syed Qayyum Ali Shah

Q#1. In intra-currency spread, suppose Pound is expected to appreciate till June and then it is expected to deprecate at least by September at faster rate than_______.

A. Spot rate

B. Forward rate

C. Expected forward rate

D. Non of above

Correct AnswerD

Q#2. The market for currency futures is used by speculators for______.

A. Reducing risk

B. Insuring risk

C. Diversifying risk

D. Non of above

Correct AnswerD

Q#3. which of the following is not acceptable in the form of margin money?

A. REPO’s

B. CD’s

C. Cash deposit

D. none of above

Correct AnswerD

Round 2nd

Q#4. when dual traders work every thing happens, except:

A. No buying and ask rate

B. No spread

C. All of the above

D. Non of the above

Correct AnswerD

Q#5.which of the following is correct

A. (P/D)/VK√T=2-2N

B. 0.5PVKT√T=1-ND

C. P=2-2NV*2K*D√T

D. None of the above

Correct AnswerA