Q. In which of the following countries did the Risk Retention Group originate?

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Q. What is a derivative security?

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Q. What are the main forms of derivatives?

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Q. What is the purpose of futures and forwards in derivative trading?

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Q. In options trading, what is a call option?

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Q. What is the main characteristic of a swap in derivative trading?

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Q. What is an example of a swap?

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Q. What is the purpose of derivatives in risk management?

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Q. Which exchange started trading insurance futures contracts following Hurricane Andrew?

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Q. What is the main characteristic of a futures contract?

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Q. What is "basis risk" in the context of insurance derivatives?

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Q. In which sectors are weather derivatives particularly relevant?

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Q. What is a benefit of "swap"-like situations for insurers and reinsurers?

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Q. What is the main purpose of securitization in the insurance market?

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Q. Why does securitization provide comfort to policyholders?

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Q. What is the role of a Special Purpose Vehicle (SPV) in securitization?

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Q. What does securitization allow issuers to do with their underlying assets?

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Q. What benefit does securitization offer to investors?

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Q. ___________ are where two parties agree to a trade in the future but one party retains the right to opt out of the trade.

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Q. What has created new challenges and opportunities for the financial services industry?

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