IN-CLASS QUIZZ 02

Which instruments are the most traded on the foreign exchange market?

a)       spot transactions

b)      swaps

c)       forwards

d)      futures


Which parameter of a forward transaction is NOT agreed upon on the day of agreement?

a)       volume

b)      exchange rate

c)       premium

d)      date of settlement


What is the situation called when the forward rate exceeds the spot rate?

a)       forward discount

b)      forward premium

c)       forward swap

d)      forward limit


What is a position in which we have a commitment to sell called?

a)       Short

b)      long

c)       open

d)      closed


When is a long forward position in profit?

a)       if the forward rate is the same as the spot rate

b)      if the forward rate is lower than the spot rate

c)       if the forward rate is higher than the spot rate

d)      if the forward rate is higher than the swap rate