NISM Currency Derivatives - 7
nism-currency-derivatives-7
Mock Test with Answer key - Click Here >>
Q (1): The Institute of Chartered Accountants of India (ICAI) has issued guidance notes on accounting of index futures contracts from the view point of parties who enter into such futures contracts as buyers or sellers - True or False ?
True
False
Q (2): What is the lot size for JPYINR futures contract?
1000 JPY
10,000 JPY
1,00,000 JPY
10,000 INR
Q (3): Which of the following is true?
Exchange rates are quoted in per unit of quoted currency
Quotation currency is the first currency in a currency pair.
Base currency is the second currency in a currency pair
Base currency is the first currency in a currency pair
Q (4): Which term best describes JPY currency?
Free Floating
Pegged to USD
Pegged to INR
Pegged to Gold
Q (5): The Swiss Franc is the currency of ___.
Francenbsp;
Switzerland
Saudi Arabia
Paris
Q (6): An Indian investor has invested Rs 187500 in US securities at an USDINR exchange rate was 75 . One years late, he noticed that his investment had gained 10% in USD terms and liquidated his investment. He repatriated the money to India at then existing exchange rateof66. What would be the real returns (returns in INR terms)?
Profit of 5.9%
Loss of 5.9%
Loss of 3.2%
Profit of 4.75%
Q (7): Mahindra Exim Traders has taken a currency loan and has to make the loan repayments in USD by equal monthly installments. It also has exports remittances (in USD) every month which are slightly above the monthly loan repayment amount. How should the company hedgeso that there is no risk involved of currency fluctuations ?
Hedge part of loan payments, which is over and above exports
Hedge part of exports which is over and above loan dues
Hedge exports, leave loan payments unhedged
Hedge loan payments, leave exports unhedged
Q (8): Mr. Amit sells a USD put option at a strike of 66 and receives a premium of INR 0.4. What would be the break-even point for the two transactions?
65.6
66.4
66
65.4
Q (9): Of the following-mentioned options, which one describes a 'derivative product'?
Derivative products can be from Equity / Currency or Commodity markets and are traded on a recognised stock exchange.
Derivatives are complex financial products and are traded mostly by Banks and Financial Institutions.
Derivatives are an understanding between two parties on one to one basis.
A derivative is a product whose value is derived from the value of one or more underlying variables.
Q (10): The settlement date for exchange-traded currency futures is ___.
Two business days before the contract expiry date
Two business days after the contract expiry date
Two calendar days after the contract expiry date
Last working day of the expiry month
Q (11): USDINR three month futures is quoting at 60.2 and six month is quoting at 61.10. Mr. Naik expects that in a month the three month futures should quote at 59.90 and the six month should quote at 60.50. If Mr. Naik executes a spread trade and the view goes right, how much profit will he make?
Rs 400
Rs 350
Rs 300
Rs 100
Q (12): When a person buys a put option, it means that he is buying a right to buy underlying asset - State True or False ?
True
False
Q (13): A client sells a USD call option at a strike of 53.8 and receives a premium of INR 0.3. What would be the breakeven point for the transaction?
54.1
53.8
53.5
54.5
Q (14): A member with the right to trade on its own account as well as on account of its clients and who can clear and settle the trades for themselves and for others through the clearing house is called a clearing member—true or false?
True
False
Q (15): Of the following, which currency pair is allowed in currency option trading in India?
USDINR
EURINR
USDJPY
All of the above