Derivatives - Intro
- Created by: axzolanski
- Created on: 16-01-22 16:48
Other questions in this quiz
2. How have CCPs impacted counterparty risks in the derivatives market?
- It has not had any noticeable impact.
- Wider use of CCPs has served to greatly reduce counterparty risk exposures.
- CCPs have forced weaker counterparties away from the market, which is now only available to the strongest credits.
- Wider use of CCPs is considered to have greatly increased systemic counterparty risk.
3. Are interest rate swaps a type of derivative?
- No, because they are off-balance sheet instruments for most users.
- No, because they are a security
- Perhaps not in the very strictest sense but, for practical purposes, they are usually included in the category.
- Yes, they are very similar to short-term rate futures.
4. Which of the following products would you most typically expect to have the greatest sensitivity to expectations of market volatility?
- Forwards
- Options
- Futures
- Swaps
5. Which of the following best describes how the exchange-traded and OTC markets have evolved since the 2008 financial crisis?
- Banks are now greatly disadvantaged in terms of regulatory capital when using exchange traded products as compared to OTC.
- The infrastructure of OTC markets has moved a long way toward convergence with that of exchange-traded markets.
- Most OTC products have been made illegal since the crisis.
Comments
No comments have yet been made