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Derivatives MCQ - Derivatives Section 1

Correct AnswerOption C
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An asset-backed security is a contingent claim not a forward commitment.
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Correct AnswerOption C
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Only one party, the short, can default.
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Correct AnswerOption B
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A swap agreement is equivalent to a series of forward agreements, which are described as forward commitments.
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Correct AnswerOption C
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Payoffs for future contracts are received daily
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Correct AnswerOption C
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A swap is a series of multiple payments at scheduled dates, whereas a forward has only one payment, made at its expiration date.
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