NISM Currency Derivatives - 1
NISM Currency Derivatives - 1
Mock Test with Answer key - Click Here >>
Q 1. A trader allows successive discounts of 15% and 10% on the marked price of an article. What would the selling price be if the marked price is Rs. 100?
Rs. 76.5
Rs. 77.5
Rs. 78.0
Rs. 79.0
Q 2. A trader does the following currency futures trade - sells EURINR and Buy JPYINR for an equivalent amount. What view has he executed ?
INR weakening against EUR
EUR weakening against JPY
EUR strengthening against JPY
INR strengthening against EUR
Q 3. Which term best describes EUR currency?
Currency floating
Free floating
Managed float
Pegged to gold
Q 4. If more than one contract in a series are outstanding at the time of expiry/ squaring off, the contract price of the contract so squared off is determined using ______ method for calculating profit/loss on squaring-up.
First-in, First-out (FIFO)
Last-in, First-out (LIFO)
As per the decision of the Clearing corporation
The Loss making contracts are first squared off
Q 5. If one year interest rate is 2.5% in UK and 9% in India. If current GBPINR spot rate is 78, what would be the one year future rate of GBPINR ?
Higher than 78
Lower than 78
78
None of the above
Q 6. Margins across the various clients of a member are collected on a gross basis - State True or False ?
True
False
Q 7. RBI reference rate is the rate published daily by RBI for spot rate for various currency pairs at around _______ .
09:00
10.30 am
12.30 pm
15:00
Q 8. The methodology usually used to value European options is ______ .
Binomial pricing
Black and Scholes
London - Paris pricing system
Llyods Theory of option pricing
Q 9. Which of the following example is that of Market Making ?
A real estate agent quoting a price to sell a bunglow
A jewellery store owner quoting a price to buy old jewellery and also quoting a price to sell new jewellery
A wholesale fruit vendor quoting price to sell fruits at low prices
A steel junk dealer quoting price to buy a very old car
Q 10. ______ is TRUE for Exchange Traded Derivatives.
Bilateral trade settlement
It is only available in stocks and currencies
Centralized trade settlement
Decentralized counter party credit risk management
Q 11. A trader expects GBYINR to remain stable at 80.00 levels over next one month. One month GBPINR premium is 50 paise. What is the likely trade that trader would do to execute the view and how much profit he would make per GBP if his views comes correct
Buy 3 month GBPINR futures, 150 paisa
Sell 3 month GBPINR futures, 150 paisa
Buy one month GBPINR futures, 50 paisa
Sell one month GBPINR futures, 50 paisa
Q 12. From the below given options, which parameters were used by RBI to decide which banks could run foreign currency INR option book ?
Networth, Capital adequacy , Profitability, Net non performing assets %
Networth, Capital adequacy , Net non performing assets %
Networth, Number of years of operation, Profitability
net non performing assets %, Profitability, Capital adequacy
Q 13. Mr. Amit is working with a of a currency broking house is an expert in currency movements. As per his view, INR should appreciate against EUR in next 6 months and accordingly he advised some of his clients to take a short position by selling EUR agai
Amit should have advised the clients correctly to take short position for 1 months and not 6 months as 6 month is a long period
Amit should have also clearly mentioned the risk to his view
Amit should not have guaranteed against losses
Amit should have advised the clients correctly to take a short position for 12 months and not 6 months as 6 month is a short period
Q 14. Of the below, which describes the frequency of adjusting liquid networth of clearing members with initial margin ?
On a Real time basis
Every one hour
Every two hours
At 10 am and 2.30 pm
Q 15. Sumit buys one lot of USDINR futures and after half an hour of buying, the price of the contract moved by 100 ticks. By how may rupees has the value of contract changed?
250 Rupees
25 Rupees
0.25 Rupees
2.5 Rupees