1. Which of the following types of orders is NOT the time-related orders?

a. A one-cancels-the-other order (OCO).

b. A fill or kill order (FOK).

c. Market on open order (MOO).

d. A good till cancelled order (GOC).

2. ____________ occurs when the futures price is lower than the spot price and the distant futures are priced lower than the nearby futures.

a. Backwardation

b. Mismatches

c. Convergence

d. Contango

3. Which of the following strategies would result the same position as buying risk-free asset?

a. Short futures and long stock.

b. Long futures and long T-bill.

c. Long T-bill and short stock.

d. Short stock and futures at the same time.

4.

Which of the following is NOT the disadvantage of Open-Outcry Method?

a. More costly.

b. More prone to errors.

c. Prone to trading halt.

d. Longer time lag.