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International Financial Management Study Set 1
Quiz 5: Currency Derivatives
81
Question 81
True False
81.If the futures rate is above the forward rate, actions by rational investors would put upward pressure on the forward rate and downward pressure on the futures rate.
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Q 82
82.Futures contracts are standardized with respect to delivery date and the futures price specified for the settlement date.
Q 83
83.If an investor who has previously purchased a futures contract wishes to liquidate her position, she would sell an identical futures contract with the same settlement date.
Q 84
84.Margin requirements are deposits placed by investors in futures contracts with their respective brokerage firms when they take their position. They are intended to minimize credit risk associated with futures contracts.
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