NISM Series I - Currency Derivatives Exam Practice Paper 11
| Q1.Assume that on 1st December 2010, USD-INR spot was at 45, the premium for January 2011 maturity put option at the strike of 45.5 is INR 0.54/0.55, and premium for January 2011 maturity call option at the strike of 45 is INR 0.71/0.72. A client Mr. Shah executes a trade whereinhebuys put at a strike of 45.5 and sells a call at a strike of 45. On expiry, the RBI reference rate is 44.75. How much net profit/loss did Mr. Shah make per USD? |
| Profit of INR 0.91 |
| Loss of INR 0.2 |
| Loss of INR 0.96 |
| Profit of INR 0.15 |
| Q2.At 10.30 am, USDINR was quoting at 49.10/49.30. At 3 pm it was quoting at 49.50/49.70. What would best describe currency move during the day? |
| INR has appreciated |
| USD has appreciated |
| INR has appreciated against USD by 40 paise |
| USD has appreciated against INR by 40 paise |
| Q3.At the start of the week, EURUSD is 1.56 and GBPUSD is 1.72. At the end of the week, EURUSD is 1.62 and GBPUSD is 1.70. Which of the following best describes the price movement? |
| GBP appreciated against EUR |
| EUR appreciated against USD |
| EUR depreciated against GBP |
| None of the above |
| Q4.Mr. Khan buys the May USDINR contract which cost him Rs 49000. The RBI reference rate for final settlement is fixed at 48.70. How much profit/loss did he make? |
| Rs 300 Profit |
| Rs 300 Loss |
| Rs 30 Profit |
| Rs 30 Loss |
| Q5.The contract size for the USDINR futures contract is ____. |
| USD 100 |
| INR 100 |
| USD 1000 |
| INR 1000 |
| Q6.The price for MARKET ORDERS is decided by ____. |
| the client |
| the broker/clearing member |
| the Exchange System / the Trading System |
| the price is mentioned when the order is entered into the system |
| Q7.Which term best describes SWISS FRANCS? |
| Pegged to USD |
| Pegged to Gold |
| Pegged to EURO |
| Free Floating |
| Q 8.___ measures the change in the value of the option with respect to the passage of time. |
| Vega |
| Theta |
| Rho |
| Delta |
| Q9.A client sells a GBP call option at strike of 64.70 and receives a premium of INR 0.50. What would be the breakeven point for the transaction? |
| 64.2 |
| 64.7 |
| 65.2 |
| 65.7 |
| Q10.Any party who is dissatisfied with the Arbitration Award of the arbitration tribunal (Appellate Bench) may challenge the same in ____. |
| the Stock Exchange |
| SEBI |
| a court of Law |
| Special Appellate Bench |