FINA 412 Options and Futures Quiz: Topics 3 & 4: Attempt review | Moodle 2025-2026 Concordia University
Started on Friday, 17 October 2025, 4:01 PM
State Finished
Completed on Friday, 17 October 2025, 4:39 PM
Time taken 37 mins 52 secs
Grade Not yet graded
Information
Participation in the quizzes falls under the Participation grading component. Quiz marks are for your information only to help you
track your learning progress. The quiz marks won't count toward the course grade, only the quiz participation, that means, whether
you have completed all quizzes, or not within the given timeframe.
Quizzes cannot be reopened after the completion deadline.
Also, a reminder that when taking part in the quizzes on Moodle, students must demonstrate the effort of trying to respond to the
quiz questions after reviewing the relevant study material first.
Example: A quiz attempt completed in a very short time, e.g. less than 5 minutes, for example, or in a similar time frame, cannot
count toward the participation grading component, among others.
Information
In some questions (Multiple Choice Selection) on the following pages, there can be one or more correct statements - in this case,
select all that apply. Incorrect choices would lead to a deduction of points.
Question 1
Correct
Mark 3.00 out of 3.00
The basis is defined as spot minus futures. A trader is hedging the sale of an asset with a short futures position. The basis
increases unexpectedly. Which of the following is true?
The hedger's position sometimes worsens and sometimes improves.
The hedger's position worsens.
The hedger's position improves.
The hedger's position stays the same.
The correct answer is: The hedger's position improves.
, Question 2
Correct
Mark 3.00 out of 3.00
Futures contracts trade with every month as a delivery month. A company is hedging the purchase of the underlying asset on June
15. Which futures contract should it use?
The July contract
The June contract
The August contract
The May contract
The correct answer is: The July contract
Question 3
Correct
Mark 3.00 out of 3.00
On March 1 a commodity's spot price is $60 and its August futures price is $59. On July 1 the spot price is $64 and the August
futures price is $63.50. A company entered into futures contracts on March 1 to hedge its purchase of the commodity on July 1. It
closed out its position on July 1. What is the effective price (after taking account of hedging) paid by the company?
$63.50
$59.50
$61.50
$60.50
The correct answer is: $59.50
Started on Friday, 17 October 2025, 4:01 PM
State Finished
Completed on Friday, 17 October 2025, 4:39 PM
Time taken 37 mins 52 secs
Grade Not yet graded
Information
Participation in the quizzes falls under the Participation grading component. Quiz marks are for your information only to help you
track your learning progress. The quiz marks won't count toward the course grade, only the quiz participation, that means, whether
you have completed all quizzes, or not within the given timeframe.
Quizzes cannot be reopened after the completion deadline.
Also, a reminder that when taking part in the quizzes on Moodle, students must demonstrate the effort of trying to respond to the
quiz questions after reviewing the relevant study material first.
Example: A quiz attempt completed in a very short time, e.g. less than 5 minutes, for example, or in a similar time frame, cannot
count toward the participation grading component, among others.
Information
In some questions (Multiple Choice Selection) on the following pages, there can be one or more correct statements - in this case,
select all that apply. Incorrect choices would lead to a deduction of points.
Question 1
Correct
Mark 3.00 out of 3.00
The basis is defined as spot minus futures. A trader is hedging the sale of an asset with a short futures position. The basis
increases unexpectedly. Which of the following is true?
The hedger's position sometimes worsens and sometimes improves.
The hedger's position worsens.
The hedger's position improves.
The hedger's position stays the same.
The correct answer is: The hedger's position improves.
, Question 2
Correct
Mark 3.00 out of 3.00
Futures contracts trade with every month as a delivery month. A company is hedging the purchase of the underlying asset on June
15. Which futures contract should it use?
The July contract
The June contract
The August contract
The May contract
The correct answer is: The July contract
Question 3
Correct
Mark 3.00 out of 3.00
On March 1 a commodity's spot price is $60 and its August futures price is $59. On July 1 the spot price is $64 and the August
futures price is $63.50. A company entered into futures contracts on March 1 to hedge its purchase of the commodity on July 1. It
closed out its position on July 1. What is the effective price (after taking account of hedging) paid by the company?
$63.50
$59.50
$61.50
$60.50
The correct answer is: $59.50
