NISM Series I - Currency Derivatives Exam Practice Paper 22
| Q1.Mr. Bharat, an exporter submits export order worth USD 5 million to the bank as proof of exposure to foreign exchange risk. As per the order, he would receive payment after six months. Given this, what best describes the eligibility of the exporter for booking a forward contract? |
| Any amount for maximum maturity of six months |
| Maximum of USD 5 million for maximum maturity of six months |
| Maximum of USD 10 million for maximum maturity of six months |
| Maximum of USD 5 million for maximum maturity of three months |
| Q2.Suppose a trader has a grievance against a trading member and he uses the mechanism of Arbitration to settle the dispute. The arbitrator conducts the arbitration proceeding and passes the award normally within a period of __ from the date of the initial hearing. |
| 25 days |
| 2 months |
| 4 months |
| 6 months |
| Q3.The SEBI Act - 1992 is the act mainly responsible for governing the trading of securities in India - True or False? |
| True |
| False |
| Q4.A call option of strike price 50 is available at a premium of 0.75 when the spot price is 50.50. If the spot price increases the premium will decline. |
| Always True |
| Never True |
| Sometimes True |
| Q5.A person buys a gold coin from a bank. Of the below options which best describes the price risk for this investment? |
| USDINR |
| USD / GOLD |
| USD / GOLD and USDINR |
| None of the above |
| Q6.In the OTC market, one-month USDINR is quoting at 73.75/74.00 and futures for the same maturity is quoting at 74.50/74.60. Which of the following describes possible arbitrage trade and possible arbitrage profit per USD if the arbitrage is carried until maturity? |
| Buy USDINR in OTC and sell in futures, 60 paise |
| Buy USDINR in OTC and sell in futures, 50 paise |
| Buy USDINR in OTC and sell in futures, 75 paise |
| Sell USDINR in OTC and buy in futures, 85 paise |
| Q7.Extreme loss margin would be deducted from the liquid assets of the clearing member on an online, real-time basis - True or False? |
| True |
| False |
| Q8.GBPINR three month future is quoting at 70.50 and six months is quoting at 71.10. Mr. Kapil expects that after a month the three-month future should quote at 70.30 and the six-month should quote at 70.70. If Mr. Kapil executes a spread trade and the view goes right, how much profit will he make? |
| Rs 300 |
| Rs 400 |
| Rs 100 |
| Rs 200 |
| Q9.State True or False - An option seller or writer shall always be obliged to perform but never gets the right to demand? |
| False |
| True |
| Q 10. A person buys one lot of USDINR futures and after half an hour of buying, the price of the contract moved by 400 ticks. By how many rupees has the value of the contract changed? |
| 0.10 Rupees |
| 1 Rupee |
| .40 Rupees |
| 10 Rupees |