7. A contract made on S&P futures requires the seller to provide what to the buyer on the settlement date? a. One share or fractional share of stocks in the index per contract for cash paid by the buyer b. Cash difference of the contract between buy and settlement dates in lieu of the value c. T-bills equal to the value of the contract between buy and settlement dates in lieu of the value d. 100 shares of each stock in the index minus cash paid equal to the value of the index at purchase date. 8. Which of the following is NOT a feature of a futures contract? a. Standardized by a futures exchange, b. Specifies standards of asset quality and features. c. Futures value is fixed at the spot price plus a specific interest "spread". d. Specifies the amount of the asset that will be exchanged. 9. What is the difference between a forward contract and a futures contract? a. Nothing: they are synonymous. b. Forward contracts for non-standardized amounts of underlying assets for delivery are not tradable on any exchange, but futures are standardized and tradable. c. Futures contracts lead to delivery of the underlying commodity if held to completion, but forward contracts only deliver cash-equivalent value. d. Forward contracts are arranged through banks; futures contracts are arranged through an exchange. 10. Generally speaking, the last day to trade futures contract: a. Is the first notice day of the underlying futures contract b. Is last notice day of the underlying futures contract. c. is just before the beginning of the delivery window of the futures contract d. Coincides with the beginning of the delivery window of the underlying futures e. None of these 11. Brass is an alloy of 67% copper and 33% zinc. Note the following information: Contract Symbol Belly Month Am. Tie The Value Copper HGN, D.Ja Mr. My. JI, SUSSO.0005 h $12.50 tic 2 N. , Ja. My, Ap, Au, S 25 ton USS.Son $12.50 Tic Assume 695, s..-785 and s. - ,562. If you need to hedge against a delivery of 650 tons of brass tube and sheet arriving in May, which contract(s) - and how many - would a. 35 ZS May contract and 9 HG May contracts b. 15 ZS Apr contracts and 45 HG May contracts c. 35 HG May contracts and 9 ZS May contracts d. None of the above 12. What kind of a hedge described in the problem 112 a. Long hedge b. Short hedge c. Cross hedge d. Arbitrage you use