This quiz works best with JavaScript enabled. Home > English Grammar > Grammar > Writing Style > Hedging And Boosting > Modality For Hedging – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Modality For Hedging Quiz 1 (17 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Forward contracts: A) A) contain a commitment to the owner, and are standardised. B) B contain a commitment to the owner, and can be tailored to the desire of the owner. C) C) contain a right but not a commitment to the owner, can be tailored to the desire of the owner. D) D) contain a right but not a commitment to the owner, and are standardised. Show Answer Correct Answer: B) B contain a commitment to the owner, and can be tailored to the desire of the owner. 2. Is this a hedging sentence?He got low scores because he was lazy. A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: B) No. 3. Currency futures contracts sold on an exchange: A) Contain a commitment to the owner, and are standardised. B) Contain a commitment to the owner, and can be tailored to the desire of the owner. C) Contain a right but not a commitment to the owner and can be tailored to the owner's desire. D) Contain a right but not a commitment to the owner, and are standardised. Show Answer Correct Answer: A) Contain a commitment to the owner, and are standardised. 4. Although brain-training apps can be fun to play, ..... A) They have negative impact on our memory. B) But modern students expect to use technology in the classroom. C) I don't believe they make you smarter. D) Research suggests this actually has negative impact on their understanding of the subject. Show Answer Correct Answer: C) I don't believe they make you smarter. 5. In order to protect itself effectively against a very significant rise in the euro, an American importer with a debt in this currency must: A) Buy EUR/USD call option. B) Buy a USD/EUR call option. C) Buy a EUR/USD put option. D) Sell a EUR/USD call option. E) Sell a EUR/USD put option. Show Answer Correct Answer: A) Buy EUR/USD call option. 6. Cellphones can affect concentration ..... , they play an important role in modern education A) Despite. B) Nevertheless. C) Maybe. D) In contrast. Show Answer Correct Answer: B) Nevertheless. 7. Eating sweets is good ..... they have a negative effect on our teeth. A) So. B) Because. C) Despite. D) But. Show Answer Correct Answer: D) But. 8. "somewhat" is a hedging word A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 9. ..... tablets are useful, there is no evidence that they improve academic performance. A) Somewhat. B) Although. C) Likely. D) Probably. Show Answer Correct Answer: B) Although. 10. A French exporter with a dollar claim fears a significant fall in the US currency. To hedge against this risk, without losing the opportunity to benefit from a rise, the exporter: A) Buy a euro/dollar put option. B) Buy a dollar/euro put option. C) Sell a dollar/euro put option. D) Sell a euro/dollar put option. E) Buy a euro/dollar call option. Show Answer Correct Answer: E) Buy a euro/dollar call option. 11. (1) many people/ (2) even though/ (3) is important /(4) brain training/ (5) don't do it A) 2; 4; 3; 1; 5. B) 1; 5; 2; 4; 3. C) 2; 4; 3; 5; 1. D) 1; 3; 5; 2; 4. Show Answer Correct Answer: A) 2; 4; 3; 1; 5. 12. What do we use to make concessions? A) Conjunctions. B) May/ Might + But. C) Adverbials. D) All of the above. Show Answer Correct Answer: D) All of the above. 13. The one-year forward rate of the British pound is quoted at $ 1.60, and the spot rate of the British pound is quoted at $ 1.63. The forward ..... is ..... percent. A) Discount; 1.9. B) Premium; 1.8. C) Premium; 1.9. D) Discount; 1.8. Show Answer Correct Answer: D) Discount; 1.8. 14. The 90-day forward rate for the euro is $ 1.07, while the current spot rate of the euro is $ 1.05. What is the annualized forward premium or discount of the euro? Hint:It's only 90 days ..... A) 1.9 percent premium. B) 7.6 percent discount. C) 7.6 percent premium. D) 1.9 percent discount. Show Answer Correct Answer: C) 7.6 percent premium. 15. Add a hedging adverb:People think better during the day if they eat breakfast. A) About. B) Some. C) Likely. D) Maybe. Show Answer Correct Answer: B) Some. 16. A European importer wishing to protect himself against a rising dollar buys a zero premium option (or zero premium). This operation consists for him in: A) To buy a USD/EUR call and sell a USD/EUR put. B) To buy a USD/EUR call and to sell a USD/EUR call. C) To buy a USD/EUR put and sell a USD/EUR call. D) To buy a USD/EUR put and to sell a USD/EUR put. Show Answer Correct Answer: A) To buy a USD/EUR call and sell a USD/EUR put. 17. Choose a hedging sentence: A) He must be the culprit. B) He is definitely the culprit. C) He could be the culprit. D) He is the culprit. Show Answer Correct Answer: C) He could be the culprit. Related QuizzesWriting Style QuizzesGrammar QuizzesBoosters In Writing QuizBoosters QuizDerivatives And Hedging QuizDowntoners QuizHedging And Boosting QuizHedging Devices Quiz 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books