Hello, sorry to take so long to answer your questions. First, 126 cameras have that small pin you see to cock the shutter and yes, it is activated by the perforations in the edge of the film when the film is advanced. Therefore, no film, no cocked shutter unless you flip the pin gently to the right.
Secondly, yes, there are only two settings on this camera for shutter speed; A for auto, and the flash symbol for your hot shoe activated flash. I believe the speeds are approx. 1/125 or so for auto and 1/60 or so for flash, but I could be off on this.
Third, the round area in the bottom of your viewfinder should be clear if you have enough light for shooting in auto, or red if flash use is indicated. I cheated here a bit: since I haven't used them in a great while and curiosity got the best of me, I pried off the small metal plate riveted on over the meter area in the camera back and this is how I saw it to work. It won't affect the photos or the camera's value much so I thought , what the heck.
Lastly, there is no green light or any other to indicate exposure because as I said, that is indicated by the round window in your viewfinder. Just in case you're curious as well, the Ikomatic F looks identical with the only changes being a flip open flash area with reflector for flash bulbs, no A or flash speed settings on the lens and inside the covered area over the meter has a battery compartment to take a 15 volt battery to operate the flash. The Ikomatic CF has a woodgrain front rather than vinyl, has a sun symbol and a flash symbol for speed settings on the lens and has a battery compartment to accept the same 15 volt battery to power the flash cube socket on top.
As far as it being a dud, even if the meter doesn't still work, (and in all honesty, 75 % of all meters on early cameras don't work any more anyway) the camera will still function perfectly well, you'll just have to know on your own when to change to the flash setting on the lens and use your flash. The camera still works hunky dory. Hope this helps you and have a Merry Christmas. Curt in Canada