NISM Series I - Currency Derivatives Exam Practice Paper 15
| Q1.A trader is long in USDINR put option of the strike price of 52. The current spot price of USDINR is 52. What is the moneyness of this option? |
| In the Money |
| Out of the Money |
| At the Money |
| None of the Above |
| Q2.If the figures published in the USA for Non-Farm Payrolls are quite lower this will result in ____. |
| Volatility in USD currency prices |
| Depreciation of USD against other major currencies |
| Appreciation of USD against other major currencies |
| No effect |
| Q3.The system of accounting which is used to calculate prices of currency futures contracts when multiple contracts of a series are combined/squared up is ____. |
| LIFO |
| FIFO |
| The lowest price contract is squared off first |
| Profit-making contracts are squared off first. |
| Q4.What is the frequency of adjusting the liquid net worth of clearing members with the initial margin? |
| Every day at 11.30 AM and then at 3.30 PM |
| Every one hour |
| On a Real-time basis |
| Every day at 3 PM |
| Q5.Which of these statements correctly describes the relationship between limit price and trigger price for a stop loss BUY order? |
| Trigger price is equal to limit price |
| Trigger price is less than the limit price |
| Trigger price is more than the limit price |
| No relationship |
| Q6.With respect to Settlement of OTC forward contract - which of the following is true? |
| It is always delivered based |
| on the market participant can decide to settle it via gross settlement mechanism or net settlement mechanism. |
| It is by exchanging the difference in the value of the currency |
| None of the above |
| Q7.A trader buys 20 lots of USDINR at 54.50 and sells 6 lots the same day at 54.60. The settlement price for the day was 54.40. What would be his mark to the market margin? |
| -800 |
| -1400 |
| -1000 |
| NIL |
| Q8.If everything else remaining the same, any policy matters which may give a boost to an inflow of foreign capital in India may result in what kind of movement of INR against JPY? |
| No change |
| INR appreciating against JPY |
| INR depreciating against JPY |
| Q9.Which style of options are only traded on Indian exchanges? |
| American options |
| Japanese option |
| European options |
| Swiss options |
| Q10.Mr. Manoj buys 100 lots of USDINR futures at Rs 53 and after three months he sells them at Rs 53.40. The margin payable was 8%. What is his annualized profit/loss in % terms? |
| 30.50 % |
| 27.90 % |
| 37.73 % |
| 32.74 % |