NISM DEPOSITORY OPERATIONS – 6
nism-depository-operations-6
Mock Test with Answer key - Click Here >>
Q 1. The higher the interest rate, the higher the CALL option premium - State True or False?
TRUE
FALSE
Q 2. Financial Derivatives are used for -
Speculation
Hedging
Arbitrage
All of the above
Q 3. If Infosys stock prices rise, the call option premium will also rise.
TRUE
FALSE
Q 4. Investors who believe the markets will fall are known as Bulls - State True or False?
TRUE
FALSE
Q 5. A short position in a futures contract can be reversed only with the same counterparty to whom the contract was originally sold - State True or False?
TRUE
FALSE
Q 6. A Professional Clearing Member can act only for Institutional clients - State True or False?
TRUE
FALSE
Q 7. What is the time value of an option?
The general bank interest rate
Its volatility of the underlying asset.
It is the difference between the intrinsic value and the premium
Its the time left before the option expires.
Q 8. A farmer agrees to sell 100 tonnes of sugarcane to a factory after 2 months at a specific price. What is this type of contract known as ?
Swaption
Future Contract
Forward Contract
None of the above
Q 9. What is the intrinsic value of a call option if the spot price is Rs 300 and the strike price is Rs 250 ?
zero
50
650
None of the above
Q 10. Among the following options, in which future contract, the contract cannot be used as a means to acquire the underlying asset ?
Copper
Gold
Individual securities
Stock index
Q 11. A buyer or holder of an option is the party to the contract who has __________.
the obligation but not the right
the right but not the obligation
the right and the obligation
None of the above
Q 12. If you buy a PUT option at a premium of Rs 20 at a Strike Price of Rs 250 and the lot is of 400 shares, then the maximum possible loss is _______
Rs 5000
Rs 8000
Rs 20,00,000
Unlimited
Q 13. ___________ measures change in delta with respect to change in price of the underlying asset.
Vega
Rho
Gamma
Theta
Q 14. The mark to mark debits for stock options are done on a –
fortnightly basis
monthly basis
daily basis
weekly basis
Q 15. A trader sells a PUT option of strike Rs 100 on ABC stock for a premium of Rs 25. On expiry day, the ABC stock closed at Rs 50. What is the trader's profit or loss in Rs. ? ( Lot size is 1000 )
25000
-25000
50000
-50000