NISM Currency Derivatives - 6
NISM Currency Derivatives - 6
Mock Test with Answer key - Click Here >>
Q 1. A wheat flour manufacturer gets into a contract with a five star hotel chain to sell certain quantity of wheat flour at a fixed price for a year. However after a few months, the price of wheat rises much above the contracted price and the manufacture
Operational Risk
Liquidity Risk
Basis Risk
Counter Party Risk
Q 2. Assume that price of a USD-INR call option is quoted as INR 0.45 / 0.47 (bid price / ask price). Given this quote, at what price could a company buy the call option?
0.45
0.46
0.47
0.48
Q 3. Guidelines for accounting of currency futures contracts are issued by ___________.
RBI
ICWAI
ICAI
FX- CA
Q 4. In the morning trades GBPINR was trading at 72.50 / 72.75 and GBPUSD was trading at 1.6525 - 1.6550. At 2 pm on the same day GBPINR moves to 72.00 / 72.25 and GBPUSD moves to 1.5050 / 1.5075. What would best describe these movements ?
GBP has appreciated against INR and appreciated against USD
GBP has appreciated against INR and depreciated against USD
GBP has depreciated against INR and appreciated against USD
GBP has depreciated against INR and depreciated against USD
Q 5. Mr. Mayur sells 10 lots of GBPINR 1 month futures when the price was 98.60/98.90 and squares off 5 lots after a week when price was 99.60/99.80. How much money did he make / lose on the part of the transaction that was squared off ?
Loss of Rs 4500
Loss of Rs 6000
Loss of Rs 7850
Profit of Rs 4500
Q 6. The seller of a Call Option has the obligation to buy the underlying asset - True or False ?
True
False
Q 7. _____________ is the process of computing open positions and determining Mark to Market margins.
Clearing
Settlement
Pay In
Pay Out
Q 8. All 11 am the RBI announced the credit policy and a deduction in interest rates. Generally such a step will lead to __________ of rupee.
No effect
strengthening
weakening
Q 9. An Indian exporter wishes to completely hedge the 10,000 GBP he is expecting to receive on 70th day from today. On the exchange the contracts available are for 30,60 and 90 maturity days. He does not to take any risk. What kind of action is he likely
Short GBPINR on an Exchange
Long GBPINR on an Exchange
Long GBPINR on OTC market
Short GBPINR on OTC market
Q 10. In a system of 10 currencies with no vehicle currencies, potentially there would be _____ currency pairs or exchange rates
100
70
45
20
Q 11. In order to prevent erroneous order entry by members, operating ranges are kept at _____ % of the base price for contracts with tenure upto 6 months and ______ % for contracts with tenure greater than 6 months.
/- 3, +/- 6
/- 3, +/- 5
/- 4, +/- 6
/- 6, +/- 3
Q 12. One year interest rate in US is 2 % and in India its 10 %. Assume current USDINR spot rate is 58 and one year future price is 62. Assuming other things remaining the same, what would be the one year future value of USDINR if the interest rate gap wid
Higher than 62
Lower than 62
Lower than 58
Equal to 58
Q 13. What are the parameters used by RBI to decide which banks could run foreign currency-INR option book?
Net worth, capital adequacy and net non performing assets %
Net worth, number of years of operation and profitability
Net worth, profitability, capital adequacy and Non Performing Assets %
Only Non Performing Assets %
Q 14. What is the maximum maturity of EURINR future contracts which are traded on a recognised stock exchange ?
3 months
6 months
9 months
12 months
Q 15. A person buys a USD call option at strike of 54.5 and pays a premium of INR 0.4. What would be the breakeven point for the transaction?
54.1
54.9
55.3
55.9