Investors must own the underlying asset in order to use derivatives., True, False, Which purpose of derivatives focuses on earning profits from price movements?, Hedging risk, Speculation, Portfolio protection, Diversification, A Vietnamese firm has a loan in USD but earns revenue in VND. What is the primary purpose for them to enter into a currency swap?, To hedge against foreign exchange (FX) risk, To increase their capital gains, To issue detachable warrants to investors, To speculate on the stock market volatility, In an equity warrant contract, the fixed price at which the holder can purchase the shares is known as the:, Premium, Market price, Maturity price, Exercise price (or Strike price), Assume that a stock is currently trading at $100. An investor owns a Call Option with a strike price of $90. What is the status of this option?, In-the-Money (ITM), At-the-Money (ATM), Out-of-the-Money (OTM), Expired, What is the primary purpose of buying a Call Option?, To profit from a decrease in the price of an asset, To guarantee a fixed return regardless of market conditions, To profit from an increase in the price of an asset., To eliminate all investment risks, Which statement best explains how leverage works in derivatives trading?, Investors receive guaranteed profits when the underlying asset increases in value, Investors eliminate all financial risk by using derivative contracts, Investors must pay the full value of the underlying asset before entering a contract, Investors can control a larger position by depositing only a small amount of money as margin, What is the main purpose of the clearing stage in a derivatives contract?, To reduce counterparty risk by using a Central Counterparty (CCP) as an intermediary, To allow investors to predict future market prices more accurately, To calculate profits and losses through the mark-to-market process, To determine whether settlement will occur through cash or physical delivery, Which of the following is the MOST popular derivative product currently traded in Vietnam?, Currency swaps, VN30 Index Futures, Interest rate swaps, Commodity options, What is a major challenge facing the derivatives market in Vietnam today?, Lack of trading platforms, Low demand from businesses, Too many foreign investors, Incomplete legal framework, What is settlement risk in derivatives trading?, The risk that one party fulfills its obligation while the other party fails to make payment or delivery, The risk that a contract expires before investors can close their positions, The risk that investors cannot easily enter a derivatives contract, The risk that market prices move in an unfavorable direction, What was the main reason Southwest Airlines used derivatives?, To increase ticket sales, To expand internationally, To reduce fuel price fluctuations, To issue more stocks

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