NISM DEPOSITORY OPERATIONS 10
nism-depository-operations
Mock Test with Answer key - Click Here >>
Q 1. A Mutual Fund floats a new fund offer of a 100% equity scheme. Till the time it invests this cash in equities, the fund can take equity exposure by buying stock index futures - State True or False ?
TRUE
FALSE
Q 2. Which amongst the following comes under the purview of Securities Contracts (Regulation) Act-1956 ?
Currency
Securities
Gold
Commodities
Q 3. Investors who are called Bulls are those investors who believe the market or stock will fall - State True or False ?
TRUE
FALSE
Q 4. A writer / seller of a deep out of the money CALL option is ________ .
Bullish - receiver of premium
Bullish - payer of premium
Bearish- receiver of premium
Bearish - payer of premium
Q 5. When a call option on an index is exercised, the call option holder receives from the option writer an amount equal to excess of spot price over the strike price of that call option - State True or False ?
TRUE
FALSE
Q 6. The clearing corporation may utilize the client account margins deposited with it for fulfilling the dues which a clearing member may owe to the clearing corporation for the trades on the clearing members own account. State True or False ?
TRUE
FALSE
Q 7. In index futures, if the near leg of the calendar spread transaction expires then the farther leg becomes a regular open position.
TRUE
FALSE
Q 8. Index futures is –
An OTC product
A Cash market security
A derivative product
An call or put option
Q 9. A Clearing Member has to deposit with the derivatives segment of the exchange or with the clearing corporation a minimum of ______ .
Rs. 50 lakhs
Rs. 100 lakhs
Rs. 150 lakhs
Rs. 20 lakhs
Q 10. A separate client account has to be maintained to keep the money and securities deposited by clients - State True or False ?
TRUE
FALSE
Q 11. A writer of a naked PUT option is _______ .
Bullish and pays the premium
Bullish and receives the premium
Bearish and pays the premium
Bearish and receives the premium
Q 12. Strike price is the price per share for which the underlying security may be purchased or sold by the option holder - State True or False ?
TRUE
FALSE
Q 13. When a futures contract is entered, ________ .
no margin is exchanged between the buyer and seller
only the buyer pays the margin to the seller
only the seller pays margin to buyer
the buyer and seller pay margins to each other
Q 14. The Risk Return profile for a Future contract is symmetric while that of an Option contract is asymmetric - State True or False ?
TRUE
FALSE
Q 15. Margins in the derivative segment has to be collected from all clients, including Financial Institutions and FIIs - State True or False ?
TRUE
FALSE