NISM Series VIII - Equity Derivatives Exam Series - 23
NISM Series VIII - Equity Derivatives Exam Series - 23
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Q 1. If a dealer is doing trades in his account and also doing trades for their clients then these two trades have to be completely segregated - State True or False?
TRUE
FALSE
Q 2. __________ guarantees the performance of exchange-traded contracts.
Clearing Corporation
SEBI
Depositories
Custodians
Q 3. Trading Member on derivatives exchange does not have Clearing rights - State True or False?
TRUE
FALSE
Q 4. Are Broker-Members allowed on the Clearing Council of the Clearing Corporation in the derivatives segment?
Yes
No
Q 5. The main logic behind the Position limits is to____________.
prevent the market from being unduly influenced by the activities of an individual/group of investors
prevent the market from being unduly influenced by Central Govt policies
give direction to the market to move up or down as determined by SEBI
to encourage high net worth investors to provide direction to the market
Q 6. You have sold a lot of JSW Steel futures for Rs 300 (lot size 2000) expecting that this share price will go down. But you also want to protect yourself against any loss of more than Rs 10,000. What should you do ?
Place a limited order purchase at Rs 305
Place a stop loss purchase order at Rs 295
Place a stop loss purchase order at Rs 305
Place a limit sale order at Rs 305
Q 7. Calculate the Intrinsic Value for the following Call option : Current price of the stock - Rs. 340. Call option for strike price Rs. 300 is quoted at Rs. 56
Rs. 16
Rs. 40
Rs. 56
NIL
Q 8. A Professional Clearing member of derivatives segment ____________ .
should also be a member of the cash segment
should also become a member of the cash segment within 2 years
provides trading facilities to its clients
does not have any trading rights
Q 9. A loss which is incurred on derivatives transactions and which are carried out on a recognized stock exchange can be carried forward for a period of
5 assessment years
7 assessment years
8 assessment years
10 assessment years
Q 10. The Clearing Corporation gives exposure limits to Clearing Members based on the number of Trading Members using the services of that Clearing Member - State True or False?
TRUE
FALSE
Q 11. Can a Equity oriented mutual fund hedge its equity exposure by selling index futures?
Yes
No
Q 12. Is the absolute amount of minimum capital adequacy requirement for derivative brokers is same as that for the cash market - True or False?
TRUE
FALSE
Q 13. The spot price of LKK share is Rs 300, the put option of Strike Price Rs 280 is _____ .
In the money
Out of the money
At the money
None of the above
Q 14. A call option is said to be ____________, when spot price is higher than strike price.
At the money
Out of the money
In the money
European
Q 15. If you are a seller of the put option, you expect ___________ of the underlying asset.
No change in the price
Increase in price
Both of the above
Decrease in the price