BUS 316 Study Guide - Midterm Guide: Chicago Mercantile Exchange, Interest Rate Swap, New Zealand Dollar

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 316
• Professor: Tara Immell

Document Summary

Question 1: derivative definitions (40 total marks, 1 mark for each) Enter your answers on the scantron bubble sheet. If more than one answer is given for any item, that item will not be marked. Explanations provided beside the answers will not be read. 10. a futures price can be contrasted with the spot price. The spot price is for immediate, or almost immediate, delivery. The futures price is the price for delivery at some time in the future. 11. the chicago mercantile exchange has introduced futures contracts on weather. 12. all trading of forwards is done on exchanges. 13. financial institutions often act as market makes for the more commonly trading instruments. This means that they are always prepared to quote both a bid price and an offer price. 15. a call option gives the buyer the right to buy an asset by a certain date for a certain price.