In reading the financial press in regards to derivatives:
A) the price in the spot market can be easily calculated from the price in the derivatives market.
B) the first trade is the price at which trading closed on the day.
C) we can judge the liquidity in the market from the volume of turnover.
D) it will always show an inverse- shaped yield curve.

Question

Quizplus · Accepted Answer

The volume of turnover in the derivatives market is an indicator of liquidity, as it reflects the level of activity and ease with which assets can be bought or sold.

In Reading the Financial Press in Regards to Derivatives