NISM Currency Derivatives - 2
NISM Currency Derivatives - 2
Mock Test with Answer key - Click Here >>
Q 1. The sellers of option contracts have the right and the obligation but this is not the case with future contract sellers - True or False ?
True
False
Q 2. Who acts as the central counter party to JPYINR future trades in India ?
The Currency Broker who executed the trade
Bank trading and clearing member
Clearing corporation
Exchange
Q 3.
The spot rate of 1 Swiss franc is₹90, and the 90-day forward rate is₹88. At what discount or premium is the Swiss franc selling?
a) 2.22%, premium
b) -2.22%, discount
c) -9.09%, discount
d) 8.89%, premium
e) -8.89%, discount
Q 4. A trading member, Mr. Gupta buys 100 lots of USDINR one months futures on day 1 at 66.50 and also sells 60 lots of the same contract on the same day at 66.20 in his proprietary book. The settlement price for day 1 was 66.30 and he paid the MTM margin
Rs 17500
Rs 20000
- Rs 9800
Rs 22500
Q 5. Currency futures position at one maturity which is hedged by an offsetting position at a different maturity is called as ___________.
Basket Trading
Delta Trading
Calendar Spread
Arbitrage Spread
Q 6. In OTC spot market, the default mode of settlement is always ______ .
Net Settlement
Gross Settlement
As decided by the merchant
Delivery based settlement
Q 7. 'Maximum open interest in the previous day' is used for the purpose of monitoring of open position during the day - State True or False ?
False
True
Q 8. What course of action can be followed by an investor is he / she is not satisfied with decision of Arbitration Tribunal ?
Nothing as the Tribunals decision is final.
He / She can approach SEBI for suitable action
He / She can approach any Court of Law
He / She can appeal to investor grievance cell of the relevant exchange
Q 9. What is the co-relation between price of a CALL option to the changes in spot price ?
Increase in price with increasing spot price
Increase in price with decreasing spot price
Decreasing price with increasing spot price
No Co-relation
Q 10. What is true with respect to Governing Council of currency futures segment of an exchange ?
Governing council of currency futures and equity derivative /cash segment can have maximum 25% common members
Governing council of currency futures and equity derivative /cash segment can have maximum 40% common members
Governing council of currency futures and equity derivative /cash segment can have maximum 50% common members
Governing council of currency futures and equity derivative /cash segment can have maximum 10% common members
Q 11. A 'DERIVATIVE PRODUCT' can be best described as a ______ .
complex product which is traded only amongst banks and large institutions
product whose value is derived from value of one or more underlying variables
product which can be from Equity / Currency or Commodity markets and are traded on a recognised stock exchange.
Q 12. A reputed exim company has export revenue in USD and it uses part of it to make import payments in EUR and balance is converted in INR. The company is concerned about USDINR risk. Which of the folowingl best describes company?s risk and currency futu
USD depreciating against INR, long USDINR
USD appreciating against INR, short USDINR
USD depreciating against INR, short USDINR
USD appreciating against INR, long USDINR
Q 13. A trader sells 20 lots of USDINR 1 month futures when price was 65.60 / 65.90 and squares off 10 lots after a week when price was 64.65/64.85 . How much money (in Rupees) did he make/ lose on the part of the transaction that was squared off ?
6800
-6800
7500
-7500
Q 14. A trading member buys 80 lots of USDINR at 74.50 and sells 90 lots the same day at 74.60. The settlement price for the day was 74.30. What would be his mark to market margin (MTM) on the open positions ?
3000
6000
-3000
-6000
Q 15. Assume that the one year interest rate is 1% in US, 2% in UK and 7% in India. If current GBPINR spot rate 91.60 , what would be the one year future rate of GBPINR ?
Higher than 91.60
Lower than 91.60
Equal to 91.60
Cannot be determined with the above data