CURRENT AFFAIRS

2017

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Who permits options trading in commodity futures?
A
The Board for Industrial and Financial Reconstruction (BIFR)
B
The Financial Accounting Standards Board (FASB)
C
The Securities and Exchange Board of India (SEBI)
D
Poverty And Economic Reforms
Explanation: 

Detailed explanation-1: -The CFTC regulates the commodity futures and options markets.

Detailed explanation-2: -How do you trade in commodity options? Only LIMIT and SL orders are available for trading in MCX under commodity options. For commodity options trading you need a separate commodity trading account and a commodity DEMAT account, both you can now open online with a broker, such as Angel One.

Detailed explanation-3: -As per current regulatory norms, only European style commodity options are available in India at present. MCX offers options on commodity futures contracts traded on the exchange. These commodity options, on exercise, devolve into the underlying futures contracts.

Detailed explanation-4: -Options trading in commodities is widespread globally with major exchanges like CME, NYMEX, LME and ICE offering options on commodities ranging from gold to oil to industrial metals.

Detailed explanation-5: -Futures contracts are financial instruments that allow investors to speculate or hedge their bets on the price movement of a specific security or asset in the future. There is no limit to the type of assets that investors can trade using these contracts.

There is 1 question to complete.