NISM Series I - Currency Derivatives Exam Practice Paper 07
| Q 1.The maximum maturity of a EURINR contract traded on recognized currency exchange in India is ____ months. |
| 3 |
| 6 |
| 9 |
| 12 |
| Q2.Which of the following is true? |
| Exchange rates are quoted in per unit of quotation currency |
| Quotation currency is the first currency in a currency pair |
| Base currency is the first currency in a currency pair |
| Base currency is the second currency in a currency pair |
| Q3.A speculator in currency markets buys a long position in USDINR futures contract at a price of 52 and he buys 25 lots of the same. On expiry, the settlement price is announced at 52.35. How much profit (+) or loss (-) does he make? |
| Profit of 875 |
| Loss of 875 |
| Profit of 8750 |
| Loss of 8750 |
| Q 4.A trader feels that INR should depreciate against the USD in the next few months. What currency future transaction will be profitable to him if his view comes true? ( Assume everything else remaining the same ) |
| Buy USDINR |
| Sell USDINR |
| Take no action |
| Q 5. A trader is bullish about USD and buys 5 lots of one-month USDINR future contracts at Rs.301500. On the expiry, the USDINR future was settled at Rs.60. What will be his profit or loss? |
| Profit of 15000 |
| Loss of 15000 |
| Loss of 1500 |
| Loss of 150 |
| Q 6. An exporter sells 25 lots of USDINR futures contracts at a price of 57. At the expiry, the settlement price is 56.10. How much Profit or Loss did the exporter make? |
| Profit of 2250 |
| Profit of 22500 |
| Loss of 2250 |
| Loss of 22500 |
| Q 7.If 10 units of gold were valued at INR 45000 and the same was valued at USD 600. As per the gold standard methodology, what would be the value of one USD in terms of INR? |
| 13.33 |
| 750 |
| 75 |
| 70 |
| Q8.Of the following what best describes the guidelines for brokers with respect to the execution of client orders? |
| Intimate the execution or non-execution by the end of the day |
| Intimate the execution or non-execution within three hours of deal execution |
| Promptly intimate the execution or non-execution of the order |
| Intimate the execution or non-execution within two hours of deal execution |
| Q 9.The value of one tick on each USDINR contract is Rupees ____. |
| 0.25 |
| 2.5 |
| 0.0025 |
| 25 |
| Q10.Which of the below options best describe the total open interest which is used for the purpose of monitoring of open position during the day? |
| Total open interest at 12.00 |
| Maximum open interest in the previous day |
| Minimum open interest in the previous day |
| Total open interest at end of the previous day |