NISM Series VIII - Equity Derivatives Exam Series -2
NISM Series VIII - Equity Derivatives Exam Series -2
Discover More Mock Tests Here
Q 1. Identify the INCORRECT statement concerning the Tracking error of index funds.
From the investor's point of view of the investors, a low tracking error is desirable
Tracking errors can also arise due to mutual fund expenses
Tracking error is the same for all index funds as it is fixed by the regulator
Cash balances that are maintained by the fund manager can cause tracking errors
Q 2. Investor Mr. X wants to sell 11 contracts of the Feb series at Rs.6300 & investor Mr. Y intends to sell 13 contracts of the March series at Rs.6450. The lot size is 50 for both of these contracts. The initial margin is fixed at 6%. How much initial margin is required to be collected from both these investors(sum of initial margin of X and Y) by the broker?
Rs 251550
Rs 459450
Rs 640000
Rs 374900
Q 3. Which of the following factors (s) influence option pricing?
time to expiration
volatility of the underlying shares
Interest rates
all of the above
Q 4. Derivative clearing members are required to maintain a net worth of a minimum of Rs 4 crore.
TRUE
FALSE
Q 5. An investor anticipating a broad stock market fall but not willing to sell his entire portfolio of stocks can offset his potential losses by shorting a certain number of Index futures.
TRUE
FALSE
Q 6. Trading is allowed in Indian Equity markets in which of the following -
Index Options
Individual stock options
Individual stock futures options
All of the above
Q 7. Clearing Corporation of an Exchange guarantees the performance of exchange-traded contracts - State whether True or False?
TRUE
FALSE
Q 8. A hedger wants to offset the price risk on his equities, so he will take _________.
Long positions in the futures
Short positions in the futures
Long position in Call
Either a long or short position in the future.
Q 9. The expiry date for the June series Index Futures on BSE would be ______.
Last Thursday in June
Last Thursday in July
Last Thursday in August
Last Thursday in September
Q 10. Mr. Hitesh is a trading member. One of his clients has purchased 12 contracts for March series index futures and another client has sold 10 contracts for March series index futures. The exposure of Mr. Hitesh as a trading member is ________.
grossed up on 22 contracts
netted out of 2 contracts
maximum of 10 and 12 which is 12 contracts
The Exchange will decide to either gross out or net out the exposure depending on his past record
Q 11. STT means ________.
Stock Trading Tax
Stock Transaction Tax
Securities Transaction Tax
Securities Trading Tax
Q 12. A 'Closing buy transaction' is a buy transaction that will have the effect of offsetting a ______.
Long position
Short position
Cross position
High position
Q 13. The Unique Client Code, which is allotted by the broker, is linked to the _________.
Trading Account
Demat Account
Aadhaar card number
PAN CARD number
Q 14. For a derivative exchange, the net worth requirement for a clearing member is always less than that for a non-clearing member - State True or False?
TRUE
FALSE
Q 15. As the Call option moves more Out-Of-The-Money, the absolute value of Delta will ______.
Increase
Decrease
No change
None of the above