1.1.1 2.1 3 1.4.1 5.6 1:71.8 1.9 1.10: 1:11: 1:12. L.13. 14. 151 . Which of the following is(are) correct description of an American Option? It is only traded on the exchanges in the USA. It can be exercised anytime from the date of issue to the maturity date. It is always denominated in USD. I only II and III only II only I, II and III o . . Which of the following is(are) feature(s) of futures contracts? Futures contracts are tailor-made and settled through clearing house. Margin is applied to the long position only. I only II only Both I and II Neither I nor II . The one-year spot rate is 4% and the two-year spot rate is 6%. What is the forward rate for the second year? 2.24% 5.39% 6.53% 8.04% O ABC Company issued a bond that will pay the coupon annually. The coupon is 1% plus the interest rate in the coming year. What type of risk is ABC Company exposed to? Type I . . Type II Type III Type IV . Which of the following is the function of the market maker in the futures market? To act as the middle man of the buyers and sellers of the futures contracts. To provide buy and sell orders to the less active futures contracts. To calculate the margin requirement in futures contract. To calculate the margin account levels of the investors. e