NISM Series I - Currency Derivatives Exam Practice Paper 03
| Q1.While computing the Mark To Market profit/loss of brought forward positions of futures contracts, which methodology is used? |
| Multiply the units brought forward with contract size and the difference between the buy price and current settlement price |
| Multiply the units brought forward with contract size and the difference between days high price and days settlement price |
| Multiply the units brought forward with contract size and the difference between previous days settlement price and current days settlement price |
| Q2.Who is/are allowed to trade in currency futures? |
| Corporate not having exposure to foreign currency |
| FIIs |
| NRIs |
| All of the above |
| Q3.Who recommended the eligibility norms for existing and new Exchanges for Currency Trading, product design, margin requirements, and other risk mitigation measures on an ongoing basis and surveillance mechanism and dissemination of market information? |
| Committee on Fuller Capital Account Convertibility |
| Special Committee formed by SEBI on Currency Futures |
| FRIDAY |
| SEBI-RBI Standing Technical Committee |
| Q 4.A currency trader has a strong bullish view on USDINR. He also expects a decrease in volatility from the current levels in the coming days. He wants to execute both these views and therefore what option strategy is he likely to use? |
| Long Call option |
| Short Call option |
| Long Put option |
| Short Put option |
| Q5.A trader in currency markets believes that USDJPY will move from 105 to 108 in the next 1 month. Which of the following would you do to execute this view using currency futures contract of JPYINR and USDINR? |
| Long JPYINR |
| Short JPYINR |
| Long JPYINR and short USDINR |
| Short JPYINR and Long USDINR |
| Q6.At the start of the month, JPYUSD is 2.66 and GBPUSD is 1.80. At the end of the month, JPYUSD is 2.87 and GBPUSD is 1.73. Which of the following best describes the price movement? |
| USD has weakened against GBP |
| USD has strengthened against JPY |
| JPY has weakened against the USD |
| GBP has weakened against the USD |
| Q7.If more than one contract in a series is outstanding at the time of expiry/ squaring off, the contract price of the contract so squared off should be determined using the ____ method for calculating profit/loss on squaring-up. |
| LIFO |
| FIFO |
| High price first |
| Low price first |
| Q8.Mr. Kohli invested Rs 1,00,000 in US Stock Markets when the USDINR rate was 60. After one year his investment appreciated by 18% in USD terms. He sold of his investments and repatriated the money to India at the then-existing rate of 62. What is his real return in INR? |
| 20.78% |
| 19.42% |
| 21.93% |
| 17.66% |
| Q9.State True or False - Unlike options, futures contracts give the seller both rights and obligations. |
| True |
| False |
| Q10.The current spot is 62, what would be the moneyness of a long USD Call option with a strike price of 63? |
| In the money |
| Out of the money |
| At the money |