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 % |