NISM SERIES I - CURRENCY DERIVATIVES EXAM

NISM CURRENCY DERIVATIVES EXAM

Q (1): A trader sells 10 lots of EURINR 1 month futures when price was 82.60/82.80 and squares off 5 lots after a week when price was 83.75/83.85 . Calculate the profit or loss on the squared up transaction. a -7500 b-5450 c -3750 d -6250 Q (2): A trader does the following currency futures trade - sells EURINR and Buy JPYINR for an equivalent amount. What view has he executed ? a - INR weakening against EUR b -EUR weakening against JPY c -EUR strengthening against JPY d -INR strengthening against EUR Q (3): Which term best describes EUR currency? a -Currency floating b -Free floating c -Managed float d -Pegged to gold Q (4): If more than one contract in a series are outstanding at the time of expiry/ squaring off, the contract price of the contract so squared off is determined using ___ method for calculating profit/loss on squaring-up. a -First-in, First-out (FIFO) b -Last-in, First-out (LIFO) c -As per the decision of the Clearing corporation d- The Loss making contracts are first squared off Q (5): If one year interest rate is 2.5% in UK and 9% in India. If current GBPINR spot rate is 78, what would be the one year future rate of GBPINR ? a -Higher than 78 b -Lower than 78 c -78 d -None of the above

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