NISM Currency Derivatives – 8
nism-currency-derivatives-8
Mock Test with Answer key - Click Here >>
Q (1):
Only American style currency options are traded on exchanges - State True or False ?
True
False
Q (2):
U.S. govt. declares significantly lower Retail Sales Data. This will result in USD _____ against other currencies.
Appreciating
Depreciation
No Impact
Q (3):
World over regulators and governments are now trying to move more and more derivative contracts to be exchange traded with __.
Delta hedging functions
Centralized clearing and settlement
Decentralized clearing and settlement
Arbitrage opportunities
Q (4):
A person executes the following currency futures trade: sells one lot of GBP/INR, buys one lot of USD/INR. What is the view that he has executed?
INR strengthening against GBP
GBP strengthening against USD
INR weakening against USD
GBP weakening against USD
Q (5):
A registered broker buys 30 lots of USDINR at 58.6 and sells 18 lots of the same at 58.80 in his proprietary account. The settlement price for the day was 58.40. What would be his mark to market margin payable?
Zero
-1400
-2400
1200
Q (6):
The trader is long in GBPINR Put option with a strike price of 80. The current spot price of GBPINR is 83. What is the moneyness of this option ?
At the Money
In the Money
Out of the Money
None of the Above
Q (7):
An exporter buys a house for INR 500,000 for which payment has to be made after three months. He is expecting to receive USD 10,000 in three months, and he executes 10 USD-INR futures contracts to hedge currency risk at a price of 50. When he received the payment,he converted USD into INR with his bank at a rate of 51 to make the payment for the house and also settled the contract at a price of 49. Given this situation, would he have sold/ bought USDINR futures and would the effective price for the house be lower than or higher than USD 10,000?
Bought, Lower
Sold, Lower
Sold, Higher
Bought, Higher
Q (8):
An Immediate On-Call (IOC) order ___.
gets exercised on the last day
is valid for one hour after it is entered into the trading system
is either executed or cancelled as soon as it is entered into the trading system
gets executed at the best price during the day
Q (9):
One year interest rate is 4% in the US and 1% in the UK. If the current GBPUSD spot rate is 1.65, which of the following would be closest to one year future rate of GBPUSD?
1.7325
1.65
1.6995
1.6005
Q (10):
The currency futures price of USD is at a premium to INR. If the USDINR spot is 75 and a trader thinks that on expiry of one month USDINR futures, the spot may remain at 75. Assuming everything else remains the same, what currency futures trading strategy wouldbeprofitable to him if his views come correct?
Buy USDINR
Sell USDINR
Buy USDINR for 1 month and sell for 3 months
Sell USDINR for 1 month and buy for 3 months
Q (11):
The mark-to-market gains and losses are settled in cash before the start of trading on _____ day
T+1
T+2
T
On Real Time basis
Q (12):
A trader is very bearish on EURINR and feels it will reach to 70 from the current levels of 75. He wants to maximise his profits from this view. Which of the below options strategies should he consider ?
Buy Call options
Sell Call options
Buy Put options
Sell Put options
Q (13):
An active trader in currency options market wants to execute his view on change in volatility over a period of time and wants to be insulated from changes in other factors impacting option pricing. What option strategy is he likely to use?
Covered call
Calendar spread
Long option
Short option
Q (14):
How can the trading member recover the mark-to-market margin of a client if the client defaults on paying mark to market margin?
It can be recovered from the margin money of the equity segment
It can be recovered from the initial margin
Give the client a credit line for 7 days to recover the margin
The client can do a new trade which will be profitable and the margin can be recovered from that
Q (15):
If one year interest rate is 1% in US and 9% in India. If current USDINR spot rate is 56, which of the following could be closest to the six month future rate of USDINR?
59.63
58.21
55.8
53.76