Test your knowledge: Risk – Basic level
Test your knowledge about risk management
Knowledge related Middle Office activities, models & processes is not only relevant for Risk Managers & Analysts, but supporting staff must also understand this in order to excel.
At this basic level your knowledge is tested with respect to terminology, theory and facts.
In the OTC markets market participants often have internal procedures for how to manage counterparty risk. Which of the following is part of that?
In the OTC markets market participants often arrange between each other when to invoice as well as when invoices are due to be paid in a document called a:
Mean reversion indicates that:
Pearson is related to:
A long call option is:
Correlation is a model in itself. This means it is based on assumptions. Which?
A normal distribution curve implies:
A short call option is:
If the Z-value is 1.96 then the confidence level is:
What is the best indicator for price risk?