Free Sample Question
Products

Which of the following are considered to be financial derivative products?

  1. Uncovered warrants
  2. Preference shares
  3. Forward contracts
  4. Options on futures contracts
A
I and IV only
B
I, III and IV only
C
II and III only
D
I, II and IV only
HKEx

Which of the following statements are CORRECT?

  1. Hong Kong Exchanges and Clearing Limited is responsible for ensuring an orderly, informed and fair market in futures traded on or through the Hong Kong Futures Exchange
  2. The Stock Exchange of Hong Kong and the Hong Kong Futures Exchange are recognized by the SFC as exchange companies
  3. Hong Kong Exchanges and Clearing Limited is listed on the Stock Exchange of Hong Kong
  4. Business risk management of Hong Kong Exchanges and Clearing Limited is undertaken by the SFC
A
I and III only
B
II and IV only
C
III and IV only
D
I, II, and III only
Type 2 License

Johnny Chiu is in the process of applying for a Type 2 license from the Securities and Futures Commission.  To act as a futures dealer, which of the following entities must Johnny be working for?

A
Licensed corporation
B
Registered institution
C
Associated entity
D
Merchant trader
Margin Liabilities

Which entity allows its participants to use cash and non-cash collateral to discharge margin liabilities from dealing in futures contracts?

A
Hong Kong Futures Exchange
B
HKFE Clearing Corporation
C
Stock Exchange Options Clearing House
D
Hong Kong Monetary Authority
Position Delta

What does a position delta measure with regard to HSI and Mini-HSI futures contracts?

A
The amount by which the price is expected to change for a given change in time to expiry
B
The amount by which the price is expected to change for a given change in the price of the underlying instrument
C
The amount by which the gamma is expected to change for a given change in the time to expiry
D
The expected change in price