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  • Questionnaire On Derivatives' Knowledge

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    Angel Bryan
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    This document is a questionnaire for clients of Chief Securities Ltd to assess their understanding of the risks associated with various derivative products, including derivative warrants, callable bull/bear contracts (CBBCs), and exchange traded funds (ETFs). The questionnaire contains multiple choice questions about issuer default risk, gearing risk, implied volatility risk, residual value risk, time decay risk, and counterparty risk. By completing and signing the questionnaire, the client confirms they understand and accept the potential risks of trading derivatives.

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    This document is a questionnaire for clients of Chief Securities Ltd to assess their understanding of the risks associated with various derivative products, including derivative warrants, callable bull/bear contracts (CBBCs), and exchange traded funds (ETFs). The questionnaire contains multiple choice questions about issuer default risk, gearing risk, implied volatility risk, residual value risk, time decay risk, and counterparty risk. By completing and signing the questionnaire, the client confirms they understand and accept the potential risks of trading derivatives.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    5 views1 page

    Questionnaire On Derivatives' Knowledge

    Uploaded by

    Angel Bryan
    This document is a questionnaire for clients of Chief Securities Ltd to assess their understanding of the risks associated with various derivative products, including derivative warrants, callable bull/bear contracts (CBBCs), and exchange traded funds (ETFs). The questionnaire contains multiple choice questions about issuer default risk, gearing risk, implied volatility risk, residual value risk, time decay risk, and counterparty risk. By completing and signing the questionnaire, the client confirms they understand and accept the potential risks of trading derivatives.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
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    Questionnaire on Derivatives knowledge

    For clients who did not have knowledge of derivative products and have already accepted Chief Securities Ltd (Chief)s explanation on the risk associated with derivatives products, please complete the questionnaire below: Derivative Warrants 1. Is issuer default risk one of the risks for trading derivative warrants? 2. Is gearing risk one of the risks for trading derivative warrants? 3. Is implied volatility risk one of the risks for trading derivative warrants? Callable bull/bear contracts (CBBCs) 4. Can the residual value of CBBCs be zero after it was mandatory called? 5. Is time decay risk one of the risks for trading callable bull/bear contracts (CBBCs)? 6. Can investors continue to trade the callable bull/bear contracts (CBBCs) after it was mandatory called? Exchange Traded Funds (ETFs) 7. Would the issuer of Exchange Traded Funds (ETFs) be classified as a financial institution that would not default nor bankrupt? 8. Is foreign exchange risk one of the risks of Exchange Traded Funds (ETFs)? 9. Is counterparty risk with different replication strategies one of the risks of Exchange Traded Funds (ETFs)?

    Yes No Yes No Yes No

    Yes No Yes No Yes No

    Yes No

    Yes No Yes No

    I (Account number ) hereby sign and confirm that I accept Chiefs explanation on the risk associated with derivative products. I fully understand different types of risks associated with derivative products and I accept the potential risks arising from trading derivative products.

    Client Signature:

    Date:

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