NISM DEPOSITORY OPERATIONS - 3
nism-depository-operations-3
Mock Test with Answer key - Click Here >>
Q 1. Can the exercise price be more than or equal to or less than the cash spot price?
Yes
No
Q 2. All the 50 stocks of NSE Nifty index are equally weighted while calculating the index - State True or False ?
TRUE
FALSE
Q 3. The minimum net worth for clearing members of the derivatives clearing corporation/house shall be _____ .
Rs. 1 crore
Rs 5 crore
Rs 10 crore
None of the above
Q 4. The option premium is affected by the difference in the exercise price and the spot price - State True or False ?
TRUE
FALSE
Q 5. Why are margins collected in the derivative segment?
To earn revenue for the clearing corporation
To minimize the number of investors entering the derivatives market
To have friction in the market so facilitate arbitrage
To minimize the risk of default by all parties involved
Q 6. All orders entered on the trading system of a derivative exchange is at prices exclusive of brokerage. True or false?
TRUE
FALSE
Q 7. A Trading member can either clear his trades or use the services of Professional Clearing members - True or False ?
TRUE
FALSE
Q 8. A Manager / Dealer in the Cash market with a registered Trading Member can also become a Manager / Dealer in the Derivatives segment without any additional formalities – True or False
TRUE
FALSE
Q 9. In the FO segment of NSE one can trade in the following derivative instruments except __________.
index based futures
individual stock options
index based options
individual warrant options
Q 10. What is the beta of a portfolio ?
Its the value weighted average of the beta’s of the constituent securities in that portfolio
Its the same as the beta of the stock with the highest market capitalization
Its the sum of the betas the constituent securities in that portfolio
Its the simple average of the beta’s of the constituent securities in that portfolio
Q 11. 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 12. The Clearing Corporation gives exposure limits to Clearing Members based on the number of Trading Members using the services of that Clearing Member - State True or False ?
TRUE
FALSE
Q 13. A long position in a call option can be closed out by taking a long position in a put option with identical exercise date and exercise price - State True or False ?
TRUE
FALSE
Q 14. In stock markets, Beta is a statistical measure of the sensitivity of the movement of a share price to the movement of prevailing interest rates - State True or False?
TRUE
FALSE
Q 15. What is an Index Option?
Its a derivative product
Its essentially settled in cash
Index options are not allowed in Indian markets
Both 1 and 2