Financial
Wordsmith
1.
YELLOW JACKET:
(A)
The stock that appreciates by 100% in one month time.
(B) An official informer to the traders in a futures exchange.
(C) The dress of registered floor clerks on LIFE.
(D) A stock that has been hammered down by the bears for a sustained period of time.
2.
WET BARREL:
(A)
An oil trading term that indicates the delivery of a product.
(B) An oil field with plenty of oil.
(C) A blue chip oil company's stock.
(D) A measure of oil in international markets.
3.
WEAK HAND:
(A)
A party that is likely to default in a commodity transaction.
(B) A party that does not intend to hold the ownership of a commodities futures contracts.
(C) A party acts as a broker between two strong parties in a commodities futures
contracts.
(D) A party that acts as a dummy in a commodities futures contracts.
4.
TOUCH:
(A)
The best bid and offer prices available from market makers.
(B) A system used in some exchanges for managing options.
(C) A technical analysis term used to indicate a new high.
(D) The exact time at which an order is executed.
5.
TIME SPREAD:
(A)
The duration of an option contract.
(B) The loss in value in a long option position due to passage of time.
(C) The amount of money option buyers are willing to pay expecting an appreciation in the
value over a period of time.
(D) AN option strategy that tells that option prices do not show a linear decline in time
value.
6.
COLOR:
(A)
A sale /purchase transaction that leaves a trader zero net position.
(B) A purchase of a derivative position on an exchange that is exactly same as a sold
position already held.
(C) A measure of the rate of change of beta.
(D) A measure of the rate of change of gamma.
7.
STRIP:
(A)
One long/short call and one long/short put.
(B) Two long/short calls and one long/short put.
(C) One long/short call and two long/short puts.
(D) Two long/short calls and two long/short puts.
8.
STAG:
(A)
A trader who buys only bonus-declared scrips.
(B) An IPO investor who wants to sell at the listing price and make profits.
(C) A trader who buys and sells on the same days to make profits.
(D) A trader who sells and buys on the same days to make profits.
9.
SOFTS:
(A)
A term that refers to those commodities that are not metals.
(B) A term that refers to those metals that are not commodities.
(C) A common term for both metals and commodities.
(D) A collective term for all the things that are traded in the futures exchanges.
10.QUOTE
VENDOR:
(A)
A market-maker who is committed to give a price to a deal.
(B) A firm which has an access to the exchange's price feed.
(C) A person who has the counter party risk to a trade.
(D) Another name for the registered floor clerks.
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Source: ICFAI Reader |
