NISM DEPOSITORY OPERATIONS -2
nism-depository-operations-2
Mock Test with Answer key - Click Here >>
Q 1. The risk that cannot be controlled by diversification of portfolio is _____ .
Systematic Risk
Unsystematic emgt;risk or company-specific risk
Credit Risk
Operational Risk/
Q 2. Over-the-counter options are always standardised - State whether True or False ?
TRUE
FALSE
Q 3. Mr. Sam is a equity fund manager and he is bearish on the stock market. How will he use this view to create a hedge?
He will sell all his stocks
He will decrease the NAV of his fund
He will sell index futures
He will buy index futures
Q 4. ‘ICICI Bank stock call and put option’ belongs to which of the following categories ?
Cash market product
Derivative product
Money market product
Debt product
Q 5. In case of a member’s default, the Clearing Corporation cannot transfer clients positions to another member or close out all open positions of defaulting member, without prior approval from SEBI – State True or False ?
TRUE
FALSE
Q 6. 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 7. Can Professional Clearing members act only on behalf of institutional clients ?
Yes
No
Q 8. The Stock Exchanges and Stock Brokers decide the option premiums , True or False?
TRUE
FALSE
Q 9. A client can use cross margining across Cash and Derivatives segment - True or False ?
TRUE
FALSE
Q 10. A client Mr P has bought March series contract and another client Mr Q has sold March series contract on Nifty futures. This has been done through the same broker. Will this qualify as a calendar spread ?
Yes
No
Q 11. How many shares should be ideally there in an index ?
Depends on the objective of the index
Around 100 to comprehensively cover all sectors/
Exactly 60
Below 50/
Q 12. At price level of Rs. 6900, what will be the value of one lot of ABC futures contract (contract multiplier 50)?
Rs. 289000
Rs. 690000
Rs. 345000
Rs. 460000
Q 13. ______ is the ratio of change in option premium for a unit change in volatility.
Rho
Theta/
Delta
Vega/
Q 14. An option allowing the owner to sell an asset at a future date is a
a) Put optionnbsp;
b) Call option/
c) Forward option
d) Future contract
Q 15. Mr. Arvind is very bullish on the market. How ever he feels some specific companies which he has in his portfolio will not perform well in future. What strategy should he adopt?
Sell Index futures and Sell specific companies shares
Buy Index futures and Sell specific companies shares
Sell Index futures and Buy specific companies shares
Do nothing as markets are uncertain