NISM Series VIII - Equity Derivatives Exam Series - 6
NISM Series VIII - Equity Derivatives Exam Series - 6
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Q 1. What will the value of one lot of ABC futures contracts be if the price is Rs. 3200 and the contract size is 150?
Rs.240000
Rs.320000
Rs.540000
Rs.480000
Q 2. What will the option holder receive when he exercises a put option on an index?
He will receive a cash amount equal to the excess spot price over the exercise price
He will receive a cash amount equal to the excess of the exercise price over the spot price
He will receive a cash amount equal to the spot price
He will receive nothing
Q 3. Mutual Fund manager has collected Rs. 300 crores from a New Fund Offer. He plans to invest this amount over the next month in buying 20 selected stocks. How can he hedge the risk for this planned purchase of stocks?
He can execute a long hedge using index futures
He can execute a short hedge using index futures contracts on each of the 20 stocks
He can execute a short hedge using index futures
He can execute a long hedge using put options on each of the 20 stocks
Q 4. Which of the following complaints can be taken up by the exchange for redressal?
Claims of notional loss, opportunity loss for the disputed period, or trade
Complaints about trades not executed on the Exchange by the complainant
Claims of sub-broker/authorized persons for private commercial dealings with the trading member
Excess Brokerage charged by Trading Member / Sub-broker
Q 5. The higher the interest rate, the higher the CALL option premium - State True or False?
TRUE
FALSE
Q 6. Anyone who wishes to open a Trading Account must be given the following documents by their trading member -
The complete version of all the laws of SEBI
Risk disclosure document
All the rules & regulations of the exchange
SEBI guidelines on the subject
Q 7. Contract month is the month in which futures contract –
Expires
Are at the lowest price
Are at its highest price
None of the above
Q 8. If the tick size of the script is 5 paise and the spot price of the script is Rs. 70, what will be the next upward tick?
69.95
70.005
70.05
70.5
Q 9. If a trader buys a put option with a higher strike price and sells a put option with a lower strike price, both of the same underlying, then this strategy is called ________.
Bullish Spread
Bearish Spread
Straddle
Butterfly spread
Q 10. Mr. Surya has gone long on April Futures on ABC stock at $1200. He will make a loss if the futures price moves to _______.
1250
1375
1225
1175
Q 11. When the order is 'Immediate-Or-Cancel' then the unmatched portion of the order is ________.
Will be added to the order book as a limited order
Is canceled immediately
Executed after normal trading hours
Will be executed on the next trading day
Q 12. Identify the TRUE statement concerning the Put option.
In the Put Option, both the buyer and seller must buy and sell the underlying product at a specified price
A put option will give the buyer the right but not an obligation to sell to the writer at a specified price
The put option will give the seller the right but not an obligation to buy from the buyer at a specified price
The put option will give the buyer an obligation but not the right to sell to the writer at a specified price
Q 13. A calendar spread in index futures will be treated as _________ in a long-month contract if the near-month contract has expired.
Long position
Short position
Optional position
Naked position
Q 14. Investors who believe that the markets will fall are known as Bulls - State True or False?
TRUE
FALSE
Q 15. The trades done by dealers in their account have to be segregated from the trades done in their client's account - State True or False?
TRUE