NISM Series I - Currency Derivatives Exam Practice Paper 12
| Q1.Any policy matter which may give a boost to the inflow of foreign capital in India may result in what kind of movement of INR against EUR? ( Assume everything else remaining the same) |
| INR appreciation against EUR |
| INR depreciation against EUR |
| No change |
| Q 2.How is the closing price for EURINR calculated? |
| The last traded price. |
| The average price of bid and ask price for the last half an hour of trading. |
| The weighted average price for the last half an hour of trading. |
| The weighted average price for the last one-hour trading. |
| Q3.Mr. Mehta, a trading member, and his two clients do the full trades in EURINR one month futures on a particular day: Proprietary position: Buy 200 lots and sell 170 lots, Client X position: Buy 40 lots and Sell 80 lots, Client Y Position: Buy 120 lots and sell80 lots. What would be the total open position of the trading member? |
| 80 lots |
| 30 lots |
| 110 lots |
| NIL |
| Q4.Mr. Swami entered in a spread trade. He bought 20 lots in October USDINR at Rs 59.70 and sold 20 lots in November USDINR at 59.90. After a month he reverses his spread by selling 20 lots in October USDINR at 59.30 and buying 20 lots of November USDINR at 59.20. How much profit or loss has he made in this spread trading? |
| Profit of Rs 60 |
| Profit of Rs 6000 |
| Loss of Rs 60 |
| Loss of Rs 6000 |
| Q5.___ are not allowed to trade in currency futures markets? |
| FII's |
| NRI's |
| Corporates not having exposure to foreign currencies |
| Both 1 and 2 |
| Q6.A person who has studied economics and international finance believe that EUR should appreciate against INR in the next 1 month. Using this view he executes a trade on currency futures. Given this situation, what type of market participant would this person be? |
| Arbitrageur |
| Delta Player |
| Speculator |
| Hedger |
| Q 7.A trading member has clients 'A' and 'B' in the currency futures segment and one client 'C' in the currency option segment. At the end of a trading day, client A has a 5000 USD short position and client 'B' has a 4000 USD long position both in the currency futures segment. Additionally, the currency option client 'C' has a 2000 USD long position. What is the gross open position for the trading member for the purpose of monitoring the open position? |
| 3000 USD |
| 9000 USD |
| 11000 USD |
| 1000 short for currency futures and 2000 long for currency options |
| Q8.Clearing means computing open positions and obligations of clearing members in the trading system and settlement means actual pay-in or payout to settle the contract - True or False? |
| True |
| False |
| Q 9.Mr. A believes that USDJPY will move from 87 to 82 in the next 2-3 months. Since USDJPY contracts are not traded in India, which of the following would Mr. A do use future contracts of USDINR and JPYINR |
| Long JPYINR |
| Long USDINR |
| Long USDINR and Short JPYINR |
| Long JPYINR and Short USDINR |
| Q10.Mr. Kulkarni 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 his investments and repatriated the money to India at the then-existing rate of 62. What is his real return in INR? |
| 20.78% |
| 21.93 % |
| 16.45% |
| 15.20% |