OPTIONS FUTURES AND OTHER DERIVATIVES
GLOBAL EDITION COMPREHENSIVE TEST
PAPER 2026 COMPLETE QUESTIONS AND
ANSWERS EXPERT VERIFIED GRADED A+
◉ electronic trading. Answer: involves traders entering their desired
trades at a keyboard and a computer being used to match buyers
and sellers
◉ algorithmic trading. Answer: involves the use of computer
programs to initiate trades, often without human intervention
◉ over-the-counter market. Answer: a decentralized market without
a central location where market participants trade with one another
through various communication modes such as the telephone,email,
and proprietary electronic trading systems
◉ forward contract. Answer: an agreement to buy or sell an asset at
a certain future time for a certain price
◉ spot contract. Answer: an agreement to buy or sell an asset today
, ◉ long position. Answer: agreement to buy the underlying asset on a
certain specified future date for a certain specified price
◉ short position. Answer: agrees to sell the asset on the same date
for the same price
◉ future contract. Answer: an agreement between two parties to
buy or sell an asset at a certain time in the future for a certain
◉ call option. Answer: gives the holder the right to buy the
underlying asset by a certain date for a certain price
◉ put option. Answer: gives the holder the right to sell the
underlying asset by a certain date for a certain price
◉ strike price. Answer: the price in the options contract
◉ maturity. Answer: date in the options contract
◉ American Options. Answer: options that can be exercised at any
time up to the expiration date
◉ European Options. Answer: can be exercised only the expiration
date itself
GLOBAL EDITION COMPREHENSIVE TEST
PAPER 2026 COMPLETE QUESTIONS AND
ANSWERS EXPERT VERIFIED GRADED A+
◉ electronic trading. Answer: involves traders entering their desired
trades at a keyboard and a computer being used to match buyers
and sellers
◉ algorithmic trading. Answer: involves the use of computer
programs to initiate trades, often without human intervention
◉ over-the-counter market. Answer: a decentralized market without
a central location where market participants trade with one another
through various communication modes such as the telephone,email,
and proprietary electronic trading systems
◉ forward contract. Answer: an agreement to buy or sell an asset at
a certain future time for a certain price
◉ spot contract. Answer: an agreement to buy or sell an asset today
, ◉ long position. Answer: agreement to buy the underlying asset on a
certain specified future date for a certain specified price
◉ short position. Answer: agrees to sell the asset on the same date
for the same price
◉ future contract. Answer: an agreement between two parties to
buy or sell an asset at a certain time in the future for a certain
◉ call option. Answer: gives the holder the right to buy the
underlying asset by a certain date for a certain price
◉ put option. Answer: gives the holder the right to sell the
underlying asset by a certain date for a certain price
◉ strike price. Answer: the price in the options contract
◉ maturity. Answer: date in the options contract
◉ American Options. Answer: options that can be exercised at any
time up to the expiration date
◉ European Options. Answer: can be exercised only the expiration
date itself
