NISM Currency Derivatives - 10
nism-currency-derivatives-10
Mock Test with Answer key - Click Here >>
Q (1):
Mr. A sold USDINR one month future at Rs 60. The interest rate gap between US and India was appx 6% per anum with the Indian rates being higher than US rates. What was the USDINR spot rate at the time of selling futures.
60.3
59.7
63.6
56.4
Q (2):
A trader expects USDINR to remain stable at 73.00 levels over next one month. One month USDINR premium is 40 paise. What is the likely trade that trader would do to execute the view and how much profit he would make per USD if his views comes correct ?
Sell 1 month USDINR futures, 40 paisa
Sell 3 month USDINR futures, 80 paisa
Buy 1 month USDINR futures, 40 paisa
Buy 3 month USDINR futures, 80 paisa
Q (3):
Assume that on 1st December 2010, USD-INR spot was at 45, premium for January 2011 maturity put option at strike of 45.5 is INR 0.54/0.55 and premium for January 2011 maturity call option at strike of 45 is INR 0.71/0.72. A client Mr. Shah executes a trade whereinhebuys put at a strike of 45.5 and sells a call at a strike of 45. On expiry the RBI reference rate is 44.75. How much net profit/loss did Mr. Shah make per USD?
Profit of INR 0.91
Loss of INR 0.2
Loss of INR 0.96
Profit of INR 0.15
Q (4):
At 10.30 am, USDINR was quoting at 49.10/49.30. At 3 pm it was quoting at 49.50/49.70. What would best describe currency move during the day ?
INR has appreciated
USD has appreciated
INR has appreciated against USD by 40 paise
USD has appreciated against INR by 40 paise
Q (5):
At the start of week, EURUSD is 1.56 and GBPUSD is 1.72. At the end of week, EURUSD is 1.62 and GBPUSD is 1.70. Which of the following best describes the price movement ?
GBP appreciated against EUR
EUR appreciated against USD
EUR depreciated against GBP
None of the above
Q (6):
Mr Khan buys May USDINR contract which cost him Rs 49000. The RBI reference rate for final settlement is fixed at 48.70. How much profit / loss did he make ?
Rs 300 Profit
Rs 300 Loss
Rs 30 Profit
Rs 30 Loss
Q (7):
The contract size for USDINR futures contract is ____.
USD 100
INR 100
USD 1000
INR 1000
Q (8):
The price for MARKET ORDERS is decided by ____.
the client
the broker / clearing member
the Exchange System / the Trading System
the price is mentioned when the order is entered in the system
Q (9):
Which term best describes SWISS FRANCS ?
Pegged to USD
Pegged to Gold
Pegged to EURO
Free Floating
Q (10):
___ measures the change in the value of the option with respect to the passage of time.
Vega
Theta
Rho
Delta
Q (11):
A client sells a GBP call option at strike of 64.70 and receives a premium of INR 0.50. What would be the breakeven point for the transaction?
64.2
64.7
65.2
65.7
Q (12):
Any party who is dissatisfied with the Arbitration Award of the arbitration tribunal (Appellate Bench) may challenge the same in ____.
the Stock Exchange
SEBI
a court of Law
Special Appellate Bench
Q (13):
As per SEBI rules, the currency exchanges have to offer _ series monthly contracts and _ quarterly maturity currency futures options contract.
4 , 4
3 , 3
3 , 4
4 , 3
Q (14):
Can we say that when the USDINR falls one way, this means there is a decrease in volatility ?
Yes
No
Q (15):
One month EURINR is quoting at 68.75/68.90 in the OTC market and futures for same maturity is quoting at 69.30/69.60. Which of the following describes possible arbitrage trade and possible arbitrage profit per EUR if the arbitrage trade is carried until maturity?
Buy EURINR in OTC and sell in futures, 55 paise
Buy EURINR in OTC and sell in futures, 40 paise
Buy EURINR in OTC and sell in futures, 85 paise
Sell EURINR in OTC and buy in futures, 65 paise