Question

Which commodity exchange had launched India's first agri-commodity options contract in guar seeds? [JAN 2018]

• A. National Commodity and Derivatives Exchange (NCDEX)
• B. Multi Commodity Exchange (MCX)
• C. Universal Commodity Exchange (UCX)
• D. National Multi-Commodity Exchange (NMCE)

Answer 1

Answer: (A)

National Commodity and Derivatives Exchange (NCDEX)

Arun Jaitley, the Union Finance Minister, had launched India's first agri-commodity options contract in guar seeds on the commodity bourse National Commodity and Derivatives Exchange Limited (NCDEX). The purpose of this new initiative is to benefit farmers and ensure better prices in the coming days. The guar seeds options is one of the most liquid contracts on the exchange platform. Around 1.5 million farmers are associated with this commodity. Options are derivatives which give a buyer the right but not the obligation to buy or sell an underlying asset or instrument at a specific price on or before a certain date. NCDEX is the second exchange after MCX to launch options trading in commodities. In October 2017, MCX had launched gold options.