Bse Institute Student Relationship Executive Interview Questions and Answers

Options are financial contracts that give the buyer the right, but not the obligation, to buy or sell an underlying asset at an agreed-upon price.

• Call options give the buyer the right to buy an underlying asset at a specified price within a certain time frame.

• Put options give the buyer the right to sell an underlying asset at a specified price within a certain time frame.

• American options can be exercised at any time be...read more

Futures/forwards are financial contracts that allow parties to buy or sell an asset at a predetermined price on a future date.

• Futures are standardized contracts traded on exchanges, while forwards are customized contracts traded over-the-counter.

• They are commonly used for hedging against price fluctuations in commodities, currencies, and financial instruments.

• The price of futures/forwards is determined by the current m...read more

Commodity derivatives are financial instruments used to manage risks associated with commodity price fluctuations.

• Commodity derivatives are contracts that allow investors to buy or sell a commodity at a future date and price.

• They are used to hedge against price volatility and manage risk in the commodity market.

• Examples of commodity derivatives include futures contracts, options contracts, and swaps.

• Futures contracts a...read more