1. Arbitrage is a transaction designed to capture profits resulting from market efficiency (Points : 3.84)

True False

Question 2. 2. If the initial margin is 11,000, the maintenance margin is $5,500 and your balance is $3,000, how much must you deposit? (Points : 3.84)

$2,500 $1,500 $8,000 8,500 5,500

Question 3. 3. Open interest is: (Points : 3.84)

demand for derivatives minimum volume number of futures contracts outstanding number of option contracts in default number of investors asking for a specific investment vehicle

Question 4. 4. Most forward contracts are closed by (Points : 3.84)

delivery offset exercise default none of the above

Question 5. 5. Which of the following duties is performed by the clearinghouse? (Points : 3.84)

holding margin deposits negotiating prices between buyers and sellers setting prices for securities lending money to meet margin requirements none of the above