Question
Identify the incorrect statement from the below:
1.Future contracts are tailor made contract. 2.Future contracts are subject to M2M settlements 3.There is more counterparty risk associated with forwards as opposed to futures. 4.Forward and futures contracts involve the agreement between two parties to buy and sell an asset at a specified price by a certain date. 5.Forward contracts have a better liquidity as compared to futures 6.Initial margin is required to enter a future contract.Solution
The forward contract is a custom-made or tailor-made contract, whereas a future contract is standardized in quantity, quality, and delivery date. Futures contracts have higher liquidity compared to forward contracts. This is because futures contracts are traded on organized exchanges, which provide a centralized marketplace where buyers and sellers can easily find counterparties to trade with.
Out of 520 students in school, 30% students like samosa only and 40% students like samosa and momos both. If 20% students don’t like any snacks then f...
Income of 'A' is Rs. 2,000 more than that of 'B'. Both spend 30% of their respective incomes. If the savings of 'C' is 20% of his income and is equal to...
- The cost of rice has gone up by 25%. By what percent should a person reduce their rice intake so that their total spending on rice remains unaffected?
A person spent 15% of his monthly income on food and 60% of the remaining on rent. If amount spent on rent is Rs 5798.70, then find the amount spent on ...
- A town's population increased by 5% in the first year, increased by 15% in the second year, and decreased by 9% in the third year. If the population in 202...
Ganesh gives 30% of her salary to his wife, 12% of the remaining amount to his children and 10% of the remaining to his parents. If has given a total am...
In an election, 25% of the total number of people on the voting list did not cast their votes. Out of the total number of votes cast by the people, 20% ...
In an election between two candidates X and Y, 12% of all votes were declared invalid. Candidate X secured 60% of the valid votes. If candidate Y got 17...
In a city, the number of persons travelling by bike is 65% the number of persons travelling by metro. The number of persons travelling on foot is 80% th...
A person saves 25% of his monthly income. If his monthly is increased by 35% and he still saves the same amount as before then find percentage increase ...
