期货理论与实务期末例题-英文

Futures Theory and PracticeFinal ExamNingbo UniversitySpring Semester 2015I. True/False (1 point for each correct answer)1. Futures markets trade any kind of commodity in any amount.2. The futures market began trading in Chicago, US, in order to better stabilize prices for farmers and buyers.3. Futures trading and Forward contracts are different terms for the same financial activity.4. Futures trading takes place in certain financial markets but just in the US.5. Futures trading involves both traders physically offering contracts at a market exchange (such as the Chicago Merchantile Exchange or CME), and online.6. Individuals can directly trade Futures contracts in the market without the assistance of traders or other third parties.7.In Futures trading, “going long” refers to buying a contract with a maturity date sometimes many months later than the purchase date of the contract.8.In Futures trading, “going short” refers to buying a contract which matures in just a short time.9. For all Futures trading, failure to offset a contract means one must take delivery of the commodity it represents.10. Forex trading is a specialized form of Futures trading because it does not involve either a commodity or a delivery date.11. Forward contracts are actually a very common form of financial activity many people use every day, usually without referring to them as forward contracts.12. A hotel reservation or an airline reservation are both forms of forward contracts.13. Cash settlement in Futures trading refers to the amount of profit you will receive when the contract matures.14. Market trading involves only fixed prices for traders, with the fixed prices changing every day depending on demand for the commodity.15. An advantage of Futures trading is the guarantee that the current price for a commodity is what one will have to pay at the time of maturity of the contract, with no risk of a price change.16. Options on Futures is a special form of Futures trading which always allows the contract holder the chance to avoid financial risk, which is why it as called an option.17. In Options trading, a Call always refers to the purchase of an option.18. In Options trading, a Put always refers to the sale of an option.19. The Spot Price in markets refers to the current cash price.20. Arbitrage involves the simultaneous purchase AND sale of equivalent commodities in different Futures markets when the spot prices in the two markets are different.II. Multiple Choice (2 points for each correct answer)1.The difference between a Forward Contract and a Futures Contract is that:a.The Futures contract is for standard period of time.b.The Futures contract is for a set quantity of only certain commoditiesc.The Futures contract is for only certain qualities of a commodityd.All of the above.2. In a Forward Contract, it is possible to reduce the risk of default by either party by:a.Doing a security check of the other party to make sure it is a good credit riskb.Creating an escrow account into which each party deposits money to be sure theyhonor the contract.c.Each party having a friendly relationship with the other party.d.None of the above because risk cannot be reduced.3. 3. A Forward Contract provides for:a. A privately agreed upon price for any kind of commodity to be delivered at a futuretime.b. A no risk way to be sure to be able to buy or sell an item at a determined price.c.Ways to get out of the contract if circumstances change.d.Changes in the agreed upon price if circumstances change significantly.4. 4. Hedging in futures trading refers to:a.Trying to create a limit on how much a future price can change for a certaincommodity.b.Holding the other party responsible to either pay or deliver the commodity when thecontract matures.c. A means by which the purchaser or seller of the contract is hoping to be protectedfrom price changes which would hurt them financially.d.All of the above.5. 5. In Futures trading, the Performance Bond isa.The entire cost of the commodity paid at the time the contract is made.b. A way of collecting extra money from contract holders before the contract matures.c. A means for the Market Exchange to influence the price performance of acommodity.d. A deposit of money to ensure the contract holder will live up to the terms of thecontract, and changes at least daily as the prices of the commodity contracts change.6. 6. To offset a Futures contract means to:a.Take an action in the market which effectively cancels the contract one already has.b.To choose not to take delivery of a commodity associated with ones contract bynotifying the other party of a desire not to fulfill the contract.c.To lose the entire amount of money remaining in the Performance Bond.d.To fall below the minimum level which the Performance Bond requires.7.7. Speculators are characterized by which of the following:a.They do not want to take delivery of a commodity, but simply hope to make moneyas the commodities’ Futures contracts change in value.b.Frequently offset their contracts.c.Are essential to the Futures market because of the large amount of cash theircontracts provide to the market.d.All of the above.8.8. With Performance Bonds, the term “Marked to Market” refers to:a. A daily reporting of what the market for a particular commodity did that day.b.The analysis of the market trends and expected future changes.c. A means of changing the commodity which a contract represents without having tooffset the contract.d.An adjustment of the deposit on the contract which changes daily, or more often,based on the changes in price for contracts on the same commodity.9.9. Futures contracts are good sources of income and income protection for:a.Long-term investors who want their investment to grow in value.b.Short-term investors who want to invest extra income in order to be assured of aquick profit.panies to use to be able to significantly add to their company value through theincreased value of their contracts.d.No one. They are not for long-term investment, do not offer income protection, butcan be good sources of income for short-term investors who guess right about markettrends.10. 10. When the maintenance level of a Performance Bond is crossed, the contract ownerreceives:a. A warning notice that the investment is losing moneyb. A call which requires the owner to add money to bring the Performance Bond up toits original amount or lose the contract, and any remaining money in the PerformanceBond.c. A notice of loss of the contract altogether.d.An advice to be more attentive to the contract and what is happening in the marketfor contracts for that commodity.11.11. Futures trading cannot be done by which of the following methods:a.On-line, using broker/trader/market supplied software.b.Through a broker, who contacts a trader to fulfill the contract request.c.Through going to the trading floor of the market to buy or sell a contract directly.d.All of the above are possible options for Futures trading activity.12.12. In Futures trading, the term Position refers to:a.The location where one must go on the trading floor to negotiate a contract.b.The appropriate broker or trader one must use to negotiate a contract.c.The market where contracts for a particular commodity can be traded.d.The Futures contract itself – either as a buyer to take delivery, or as a seller to deliver.13.13. Commodities are the basis of all Futures trading. Which of the following kinds ofcommodities can be traded on the Futures markets?a.Goldb.Oilc.Wheatd.All of the above14.14. Which of the following is a characteristic which makes commodities a valuable financialinstrument in Futures trading?a.All commodities can be delivered as contracted.modities are more inelastic as investments.modities never go out of fashion, never cease to be needed.d.All of the above15.15. An inelastic commodity is one in which:a.Value can only increase or decrease within certain clearly predefined limits.b.Demand plays no role at all in the value of the commodity.c.Supply plays an absolutely important role in the value of the commodity.d.Supply and demand have a relatively lower effect on the value of the commodity.16.16. The main risks of trading in the Futures markets incudes all of the following, except:a.Inflation may cause the commodity to become so expensive it cannot be traded onthe Futures markets anymore.ernment actions and policies can dramatically affect the value of a commodityand its Futures contracts.c.Volatility caused by speculation can cause large price swings in the value of Futurescontracts.d.Fraud in the investment industry can artificially control prices and contract values.17.17. Futures trading is not the only way to invest in commodities. Other methods include all ofthe following except:modity mutual fundsb.Purchasing commodities bondsc.Stock investment in companies dealing with commoditiesd.Exchange traded funds18.18. A reason for Futures trading in precious metals (for example, gold, silver) might be:a.It always has an inherent value, which is reflected in the contract price.b.Contract owners can always take delivery, no matter how large the quantity involved.c.It has no real value to industry, and so is good for speculation.d.Precious metals cannot be owned directly but Futures trading offers a method tobenefit from changes in the value anyway.19.19. The most traded non-financial commodity in the world is:a.Goldb.Oilc.Coald.Wheat20.20. The price for oil futures contracts can be directly influenced by all of the followingexcept:a.Changes in interest ratesb.Changes in governments’ policiesc.Discovery of new reserves of oild.New technologies21.21. One of the most volatile of all commodities for agricultural Futures contracts is:a.The softsb.The Agsc.Livestockd.None of the above22.22. The two main forms for analysis and strategy in Futures trading are:a.Fundamentals and trendsb.Technicals and volatilityc.Fundamentals and technicalsd.Trends and volatility23.23. Which of the following is not an important factor in analyzing contract activity on theFutures markets?a.Stock market changesb.Volatilityc.Liquidityd.Seasonality24.24. The use of Fundamentals in doing market analysis relies heavily on which of thefollowing?a.Historyb.Numerical analysisc.Chartingd.Probability theory25.25. Fundamentals analysis focuses on all of the following except:a.Supply and demand issues in production or growing cycles.b.Changes in technologies and politics which can affect the Futures market.c.The basic inherent value of the commodity.d.None of the above. All of the above are important for Fundamentals analysis.26.26. Macroeconomic areas which factor into Fundamentals analysis, for at least somecommodities, include:a.National monetary policies.b.Economic data (inflation, CPI, GDP, PPI, employment, etc.)c.Housing marketd.All of the above.27.27. The main thing Technical analysis measures is:a.Market sentiment and past performanceb.Future market highsc.Future market lowsd.None of the above.28.28. The most critical information for doing Technical analysis comes from:a.Highs and lows for the period being analyzedb.Opens and closes for the period being analyzedc.Volatility during the period analyzedd.All of the above.29.29. Technical analysis uses which of the following to guess where the market may go:a.Chartsb.Predictive algorithms also used to predict the weather.c.Profit calculatorsd.None of the above.30.30. In Futures markets, the most important information about the value of a contract is the:a.Bid and asked prices.b.Bid and average daily price.c.Asked and average daily price.d.Average daily price.31.31. Trend lines are generally reliable indicators of market behavior unless:a.There are no trends to be observed.b. A major event disrupts market sentiment.c.The trend changes direction.d.There are too many data points on the chart.32.32. A “support” trend line on a chart i dentifies:a. A good time to sell.b. A pattern associated with the highest prices in the market’s performance.c. A pattern associated with the lowest prices in the market’s performance.d.No such patterns ever appear on charts.33.33. A “resistance” trend line on a chart identifies:a. A good time to buy.b. A pattern associated with the highest prices in the market’s performance.c. A pattern associated with the lowest prices in the market’s performance.d.No such pattern ever appears on charts.34.34. Charts may involve which of the following analytical attempts:a.Statistical analysis of the market activitiesb.Daily or more frequent tracking.c.An effort to identify the up and down trends of the market, separate from massiveamounts of data.d.All of the above.35.35. A spike in volume for market activity usually means:a.Nothing; it is just a single event and markets are unpredictable.b.Liquidity is falling sharply.c.30% of traders are ready to offset their contracts for the commodity.d. A change in prices is likely to soon follow.36.36. A retracement on a chart is:a.Another term for a full reversal of market prices and trends for a commodity contract.b. A change of trend in the market for a commodity, usually lasting only a short time,before continuing with the previous trend.c.The result of a gap in the market trend for a commodity.d.All of the above.37.37. Which of the following situations observed on a chart might suggest a market reversal iscoming:a.Trend lines are rising and volume is high.b.Trend lines are stable and volume is low.c.Trend lines are falling and volume is high.d.Trend lines are stable and volume is high.38.38. A gap in a trend line on a market chart for a commodity, along with low volume mostlikely suggests:a. A breakaway (either higher or lower) is about to occur.b.Liquidity for the commodity is increasing.c.The gap is probably not really significant.d.The market momentum for the commodity is about to become strong.39.39. The basic trend lines on a chart of market activity, which can help guide analysis of futuremarket direction for a commodity are:a.Support lines based on the extreme lows in the market.b.Resistance lines, based on extreme highs in the market.c.Linear regression (standard deviation calculations) based on the daily averages.d.All of the above.40.40. Momentum in the market is a measure of:a.How active the market is.b.How easy it is to buy, sell, or offset a contract in the market.c.Market change points.d.The strength of a current trend in the market.41.41. A moving average for the market in a commodity, usually used on charts, is:a. A target level one uses to determine the price for animal commodities.b.An important measure of what is happening to the overall commodities markets.c.An indicator of market momentum.d. A brief historical norm which changes daily or more often, and gives some indicationabout whether the price is moving toward a buy or sell recommendation.42.42. Which of the following is an important way in which a Futures trader can protect againstmarket risk?a.Predetermine how much loss can be sustained, and when it is the right time to buy,sell, offset a position.b.Limit the use of margin trading.c.Make full use of trading safeguards offered by the broker/agency through whichtrades are made.d.All of the above.43.43. The Forex market is a unique Futures market because:a.There is no actually commodity to be delivered.b.Traders compete on an equal level with large nation and international financialinstitutions and companies.c.The market is always very liquid because it involves the use of currency.d.There is never a bid/asked price in this market, but only the set price for the currency.44. 44. In the Forex market, trading is always done:a.In any currency one chooses to buy or sell.b.By currency pair.c.Based on the region in which the trade takes place and limited to currencies in thatregion.d.By using only one specific currency in which all trade transactions are carried out inthe market.45.45. The most active currency pair in the Forex market is:D/CHFb.GBP/USDD/JPYd.EUR/USD46.46. Among currency pairs on the Forex market, all value changes and profit/loss in a trade istaken in:a.The base currency.b.The counter-currency.c.Both the base currency and the counter-currency.d.The cross-currency.47.47. In Forex trading, a PIP is:a. A really successful trader.b. A truly unsuccessful trader who loses a lot of money.c. A measure by which value changes are determined.d.Another term for the profit a trader makes on a currency pair.48.48. Some important Fundamental factors to Forex markets include which of the following:a.Changes in national interest rates by a country which does not use either currency ofthe currency pair.b.The creditworthiness, based on the consumer price index, of a country which uses acurrency of the currency pair.c.The monetary policy of the Central Banks of the countries which use one of thecurrencies of the currency pair.d.All of the above.49.49. National Central Banks sometimes intervene in the Forex market, in order to:a.Change the value of a particular currency in the market, either unilaterally or jointlywith several countries.b.To economically punish a country that nation does not like.c.Make a statement of economic strength which other countries can see by the affectsuch intervention has on the market.d.Foster international financial stability.50.50. The USD/JPY pair in the Forex market is characterized by:a.The regularity and liquidity of trading of this particular pair.b. A history of frequent Japanese intervention in the market in support of Japan’sexport-based economy.c.The poor extent to which technical analysis provides any meaningful prediction ofthe future direction of the market for this currency pair.d.An absence of any influence from US interest rates on this particular currency pair.51.51. GBP/USD and USD/CHF pairs in the Forex market share some common characteristics,including:a.Significant price swings, with spreads often exceeding 3 to 5 PIPs.b.Relatively low trading volumes, especially when compared to the other majorcurrency pairs.c.Little retracement or backfilling in technical analysis.d.All of the above.52.52. In the Futures markets, an Option:a.Provides one the right, but not the obligation to buy or sell a Futures contract.b.Requires the holder of the Option to buy or sell a Futures contract.c.Gives the Option buyer an assurance of a profit later.d.Gives the Option seller and assurance of an immediate profit and a longer term profitas well.53.53. In Options markets, a Call refers to:a.The right to buy a certain contract at a predetermined price at a certain future date.b.The right to sell a certain contract at a predetermined price at a certain future date.c.The right to collect a premium from the option.d.The right to make a profit no matter what happens in the market.54.54. In Options markets, a Put refers to:a.The right to buy a certain contract at a predetermined price at a certain future date.b.The right to sell a certain contract at a predetermined price at a certain future date.c.The right to collect a premium from the option.d.The right to make a profit no matter what happens in the market.55.55. For every Options buyer, there must bea. A call optionb. A put optionc.An Options sellerd. A certainty of making money.56.56. When the an Option is “in the money”, it meansa.The strike price is above the current price of the Futures contract.b.The strike price and the current price for the Futures contract are the same.c.The strike price is below the current price of the Futures contract.d.The Option owner just made a lot of money.57.57. In Futures trading a position refers to:a.Where the trade is being offered on the trading floor of the market.b.Which market the contract will mature in.c.Where the buyer/seller must go to find a trader.d.The contract agreement one holds, whether as a buyer of a commodity or a seller of acontract.58.58. A major difference between Stock market trading and Futures market trading is:a.For stocks, the greatest risk loss is the initial investment as no additional monies arerequired.b.Stocks normally have no expiration while all Futures contracts have expiration datesc.Stocks can normally be bought and held for long periods of time while Futurescontracts are never designed to be held for a long period of time.d.All of the above.59.59. Electronic trading in Futures marketsa.Is the most common way of trading globally in Futures markets.b.Is complicated and subject to a lot of variation and potential for mistakes.c.Is a very costly way for a buyer/seller to enter a position in the market.d.Can only be done by registered brokers.60.60. The Futures trading strategy called Spreading involves:a.Two related commodities for which the market price performance is normally inparallel, accepting a loss from one but a gain from the other.b.Seeks to make money based on the changes in the spread (price difference) betweencontracts for the two commodities.c.Attempts to limit risk in the Futures market by changing the focus of the strategyfrom making money from a single contract, to focusing on the money that can bemade as the spread changes between two contracts.d.All the above.III. Fill-ins (3 points each)1._________________________________ refers to how easy or hard it is to offset aFutures contract on the Futures market.2._________________________________ refers to the price swings between the high andthe low price for a commodity and its Futures contract.3._________________________________ is a strategy which focuses on the influence oncommodity prices from such things as production cycles, weather and climate changes,geography, and may even be influenced by political stability if there are recurring cycles of political problems.4._________________________ refers to a person or company that uses Futures markets inorder to hopefully guard against future price changes and actually plans to take delivery.5._________________________ refers to a person or company that uses Futures marketssolely for the purpose of trying to make a profit and neither expects nor desires to take delivery.6._________________________ seeks to use the commodity price differences at twodifferent markets for profit, by simultaneously selling in the higher priced market and purchasing in the lower priced market.7._________________________ refers to purchasing a Futures contract.8._________________________ refers to selling a Futures contract.9._________________________ refers to an action which effectively terminates a Futuresposition.From the chart below, identify each of the terms by placing the letter from the chart on the line next to the term.10.Support trend line_________11.Resistance trend line_________。