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Description Quiz 10 is based on lecture 11 Derivatives. There are 2 attempts only for each
quiz. Each attempt has a time limit of 1 hour. Each quiz has a weight of 2% of the
total mark. The quiz deadline is on Monday (5 June) at 5pm.
Instructions
Timed Test This test has a time limit of 1 hour.This test will save and submit automatically when
the time expires.
Warnings appear when half the time, 5 minutes, 1 minute, and 30 seconds
remain.
Multiple This test allows 2 attempts. This is attempt number 1.
Attempts
Force This test can be saved and resumed at any point until time has expired. The timer
Completion will continue to run if you leave the test.
QUESTION 1
Long position in forwards contract makes a gain when underlying asset prices
exercise price.
Fall below
Rise above
Unchanged compared to
1 of 5 5/31/17, 2:03 PM
Take Test: Quiz 10 (Lecture 11) 49098-2017-AUTUMN-CITY https://online.uts.edu.au/webapps/assessment/take/launch.jsp?course_ass...
55 minutes,05 seconds.
Remaining Time:
Long position in forwards contract makes a loss when underlying asset prices
Fall
Rise
Unchanged
QUESTION 3
Short position in forwards contract makes a gain when underlying asset prices
exercise price.
Fall below
Rise above
Unchanged
QUESTION 4
Short position in forwards contract makes a loss when underlying asset prices
Fall
Rise
Unchanged
QUESTION 5
2 of 5 5/31/17, 2:03 PM
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55 minutes,05 seconds.
Remaining Time:
Hedging
Speculation
QUESTION 6
Hedging
Speculation
QUESTION 7
QUESTION 8
3 of 5 5/31/17, 2:03 PM
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55 minutes,05 seconds.
Remaining Time:
Customised Standardised
Standardised Customised
Standardised Standardised
QUESTION 9
High Low
Low High
Low Low
QUESTION 10
risk is when there is no futures contract for the commodity you want to hedge,
so you hedge a similar commodity.
Basis risk
Contract size
Margin risk
4 of 5 5/31/17, 2:03 PM
Take Test: Quiz 10 (Lecture 11) 49098-2017-AUTUMN-CITY https://online.uts.edu.au/webapps/assessment/take/launch.jsp?course_ass...
55 minutes,05 seconds.
Remaining Time:
5 of 5 5/31/17, 2:03 PM