NISM Series I - Currency Derivatives Exam Practice Paper 21
| Q1.A trading member buys 5 lots of two-month USDINR future in his proprietary account. What is his open position at the end of that day in USD? |
| 5 |
| 50 |
| 500 |
| 5000 |
| Q 2.A person sells GBPINR and buys EURINR for an equivalent amount. what view has he expressed? |
| INR appreciation against GBP |
| EUR appreciation against GBP |
| EUR depreciation against GBP |
| INR depreciation against GBP |
| Q3.An importer sells 10 lots one-month USDINR futures at 65. At the expiry, the settlement price was announced as 65.70. Calculate his profit or loss. |
| Profit of Rs 700 |
| Profit of Rs 7000 |
| Loss of Rs 700 |
| Loss of Rs 7000 |
| Q 4.An vegetable oil factory owner gets into a contract with McDonald's to sell a certain quantity of vegetable oil at a fixed price for a year. Which type of contract has the factory owner entered into with the McDonalds? |
| Swap |
| Arbitrage |
| Forward |
| Future |
| Q5.Mr. Doshi believes that there is a very strong bullish trend in EURINR. He also believes that there will be a increase in volatility. So which option strategy is the most likely to use? |
| Long Put |
| Long Call |
| Shot Put |
| Short Call |
| Q6.Ms. Mamta buys 10 lots of USDINR 1 month futures when the price was 65.00/65.10 and squares off 5 lots after a week when the price was 65.15/65.35. What were her profits or losses? |
| -500 |
| 500 |
| 250 |
| 1250 |
| Q7.One-year interest rates in the US and India say 4% and 8% respectively and the spot rate of USD in India is Rs.56.00. Find the fair value of a 90 day USD/INR futures contract. |
| 55.44 |
| 56 |
| 56.56 |
| 56.84 |
| Q8.Rohan buys GBPINR futures at various price points over two days. He buys 20 lots at 80.00 at 11.30 am and 15 lots at 80.25 at 1.30 pm on Day 1. On Day 2 he buys 25 lots at 80.50 at 11 am and 10 lots at 80.40 at 2 pm. On day 3 he sells 10 lots at 79.90. Calculates Profit/loss on the squared-off position using the FIFO method. |
| 2500 |
| -1000 |
| -100 |
| 1500 |
| Q9.Which statement best describes the rule for reporting the closing of a position by a trading member (TM) of the exchange? |
| TM has to identify whether the position is his own or of a client at the end of the day |
| TM has to identify whether the position is his own or of a client at the time of initiating the position |
| TM can chose to identify the position as his own or client’s or leave it also |
| TM has to identify whether the position is his own or of a client at the time of closing of a position |
| Q10.A member with a right to trade on its own account as well as on account of its clients and who can clear and settle the trades for self and for others through the Clearing House is called a ______. |
| Professional Clearing Member |
| Trading Member |
| Clearing Member |
| Trading cum Clearing Member |