1.

In the futures markets, the seller of a futures contract:

Select one:

a.

takes the long position.

b.

has the obligation to deliver the underlying financial asset at the specified future date.

c.

has the obligation to receive the underlying financial asset at the specified future date.

d.

may, at their choosing, deliver or receive the underlying financial assets at the specified future date.

2.

Portfolio managers try to use derivatives:

Select one:

a.

to gain from up market.

b.

to limit the downside risk exposure.

c.

to protect capital gain when markets decline.

d.

all of the given answers.