NISM DEPOSITORY OPERATIONS 9
nism-depository-operations
Mock Test with Answer key - Click Here >>
Q 1. The National Stock Exchange, for its index futures, what would be the opening day of its April series?
Last Friday of March month
Last Friday of April month
Last Friday of Jan month
Last Friday of February month
Q 2. A buyer of the put option
Has the obligation to take delivery of the asset
Has the right to buy the underlying asset
Has the right to sell the underlying asset
Has the obligation to give delivery of the asset
Q 3. The initial margin in derivatives is fixed and depends on the volatility of the stock. True / False?
FALSE
TRUE
Q 4. A Forward Contract _______ .
can be cancelled but only after the expiry date
can be cancelled if the counter party also agrees to it
cannot be cancelled
can be cancelled even without the consent of the counter party
Q 5. Option premium depends on ___________ .
volatility of the underlying
current price and the strike price
interest rates in the economy and the time to expiry
All of the above
Q 6. If the price of the underlying stock of a PUT option is very volatile, _________ .
the premium will comparatively be lower
the premium will comparatively be higher
the premium will be zero
No effect on option premium
Q 7. Mr. Sunil wishes to buy a futures contract of Tata Steel shares. He should _______.
make payments for the full value of the contract
make the margin payments as calculated by the exchange
hedge his position in Tata Steel in the Options market
None of the above
Q 8. Among the given options, which one can be the principal driver of the movement of stock index ?
Inflation
Price movement in underlying shares
Interest Rates
Currency Rates
Q 9. What happens when the price of the underlying rises after a future contract is initiated ?
Price changes in the underlying will not effect the price of futures
The short position will become profitable
The long position will become profitable
The long position will become unprofitable
Q 10. Cross margining between cash and derivative segments of an exchange helps reduce the overall margin level applicable to investors and traders - State True or False ?
TRUE
FALSE
Q 11. Operational risks include losses due to______
natural calamities
inadequate contingency planning
power failure
all of the above
Q 12. A long position in a CALL option can be closed by taking a short position in PUT option.
FALSE
TRUE
Q 13. If you SELL a PUT option at premium of Rs 30 at the Strike Price of Rs 200, lot is of 400 shares, then the maximum possible loss is ______
Rs 6000
Rs 68,000
Rs 80,000
Unlimited
Q 14. Can a Clearing Member provide 'Fixed Deposits' as part of its liquid assets to the Clearing Corporation?
Yes
No
Q 15. The ratio of the change in delta for a unit change in the price of underlying is called ________ .
Vega
Theta
Alpha
Gamma