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.
The ratio of the present ages of Ginni and Binni is 7:4 respectively. Ginni is ‘n’ years older than Binni. If after 2 years, the ratio of the ages o...
The seller sold a total of 40 kg of rice bags, comprising Basmati Rice and Brown Rice. The cost price of Basmati rice is Rs.72/kg, and that of Brown ric...
A shopkeeper mixes two types of rice costing Rs 60 per kg and Rs 80 per kg in a ratio. He sells the mixture at Rs 85 per kg and gains a profit of 25%. I...
The jar P has a mixture of milk and cream in the ratio of 8:5, and the jar Q has a mixture of 60 liters of milk and cream in the ratio of 7:5. If the mi...
A luxury watch is originally priced at ₹15,000. During a seasonal sale, the watch is offered at a discount of 30%. After the discount, an additional 1...
(0.25) -1.5 = ?
‘A’ and ‘B’ can do a piece of work in 25 days and 30 days, respectively. If they started the work together and worked on it for 5 days, then fin...
In what ratio rice at 47 Rs/kg should be mixed with the rice at 28 Rs/kg so that selling mixture at Rs 45 per kg gives the profit of 25% if the quantity...
A shopkeeper marked his goods 30% above the cost price and earned a profit of Rs. 14 after selling it by giving a discount of 22%. Find the cost price o...
There are two buckets X and Y containing mixture of milk and water in which concentration of milk is (a-9)% and (a+15)%, respectively. They are mixed to...
