NISM DEPOSITORY OPERATIONS - 1
nism-depository-operations-1
Mock Test with Answer key - Click Here >>
Q 1. If a Clearing member defaults, the margin paid on his own account only is allowed to be used by the clearing corporation for realizing its dues from the member. The clients margin remain unaffected - State True or False?
TRUE
FALSE
Q 2. _________ is the change in option price given a one percentage point change in the risk-free interest rate.
Delta
Rho
Vega
Gamma
Q 3. Any person who wishes to open a Trading Account must be given the following documents by his trading member -
Complete version of all the laws of SEBI
Risk disclosure document/
All the rules amp; regulations of the exchange
SEBI guidelines on the subject/
Q 4. A commodity futures exchange _____________.
Trade in cash and futures commodities
trades only in futures of commodities/
trades in commodities, which it owns
trades in commodities which it does not owns/
Q 5. Mr. Ganesh thinks that the markets will go down, so he sell 10 lots of index futures at 3500. His predictions come true and the index falls and Mr. Ganesh buys back the futures contract at 3410. What is the profit Mr. Ganesh has made if one lot of index is of 50.
35000
45000
55000
65000
Q 6. How do you close a short position in a futures market?
By Buying a Call Option
By entering into a suitable forward contract/
By executing a purchase of the same futures contracts
By executing a sale of the same futures contracts/
Q 7. A strategy in which a trader buys a call option of a lower strike price and sells another call option with a higher strike price of the same share and the same expiry date is called ___________.
Butterfly spread
Bearish spread/
Bullish spread
Calendar spread/
Q 8. Which of these statements id true?
Money and securities deposited by clients can be attached to meet the brokers obligation on his proprietary account.
Money and securities deposited by clients cannot be attached for meeting the brokers obligation on his proprietary account
Money and securities deposited by clients can be attached as per the decision of the clearing corporation
Money and securities deposited by clients can be attached as per the decision of the Stock Exchange
Q 9. The initial margin to be paid in derivatives is set up taking into account the volatility of the underlying market. Generally ___
Lower the volatility, higher the initial margin
The higher the volatility, the lower the initial margin
The higher the volatility, the higher the initial margin
None of the above
Q 10. Meghna wants to sell 34 contracts of ABC futures at Rs. 2450 (contract multiplier is 50) . The initial margin is 7%. What will be the initial margin to be paid?
Rs. 4165000
Rs. 83300
Rs. 5831
Rs. 291550
Q 11. In the derivatives market, as the strike price goes down, the premium of PUT option ______
will increase
will decrease
there will be no change
can increase or decrease
Q 12. Can the exercise price be more than or equal to or less than the cash spot price ?
Yes
No
Q 13. In a derivative segment, the initial margin is collected from the clearing member on a net basis ie. after netting all buy and sell positions of all clients together - State True or False ?
TRUE
FALSE
Q 14. Derivative brokers/dealers are expected to know their clients and to exercise care to ensure that the derivative product being sold by them to a particular client is suitable to his understanding and financial capabilities—state true or False?
TRUE
FALSE
Q 15. Trading is allowed in Indian Equity markets in which of the following:
Index Options
Individual stock options
Individual stock futures options
All of the above