Which of the following is TRUE:Group of answer choicesNone of the above.A short position in a forward contract gives you the right and the obligation to buy an asset at a specified price, at a specified time in the future.Only the counterparty, which is short futures, is required to deposit money in a margin account.A long forward contract is equivalent to a long position in a put option and a short position in a call option.Buying an option to sell is the same as selling an option to buy.

Which of the following is TRUE about a short forward contract position? Select one alternative The short position is worth zero if the price of the asset declines after the contract has been entered into. The short position becomes more valuable as the price of the asset rises. The short position is worth zero if the price of the asset rises after the contract has been entered into. The short position becomes more valuable as the price of the asset declines.

Which of the following is an example of a forward contract?*1 pointa. Buying a stock optionb. Purchasing a government bondc. Selling a currency at a future dated. Investing in a real estate property

Which of the following statements about futures are false:I. Long position occurs when the futures contract is initially sold and subsequently bought in future;II. In Australia bonds futures are usually quoted at an index figure of 100 minus the yield so a dealer can follow a basic principle of buy low and sell high;III. Novation is the process to renew futures contracts when they fall due;IV. Short position implies selling asset at a future date and correspondingly selling futures contract today.

Which of the following statement is NOT true about derivative contracts?Review LaterDerivative contract can be seen as a bet on which way the price of its underlying asset may move in the future.A long position is a bet that the number is going to fall while a short position is a bet that the number will rise in the future.Companies often use derivative contracts to transfer risk to another party.Derivatives are often used for hedging, which aims at protecting a current financial position from potential losses.

If you have agreed to sell USD for AUD forwardyou have a short position in the USD forward contract.until the exchange rate moves, you have not made money, so you're neither short nor long.you have a long position in the spot market.you have a long position in the USD forward contract.