NISM Series VIII - Equity Derivatives Paper - 01
| Q1.If a company declares a dividend, what will be the effect on the pricing of call options? |
| Call option price will rise |
| Call option price will fall |
| No effect on option pricing |
| None of the above |
| Q2.In an In the money PUT option_ |
| strike price would be lower than the market price |
| exercise price would be equal to the market price |
| strike price would be higher than the market price |
| strike price would be zero |
| Q3.The Ask price is always greater than the Bid price. |
| False |
| True |
| Q4.An index option is a Money Market Instrument - True or False? |
| True |
| False |
| Q5.Forward contracts are OTC contracts - True or False? |
| True |
| False |
| Q 6. Can a Clearing Member give 'Fixed Deposits' as part of liquid assets to the Clearing Corporation? |
| Yes |
| No |
| Q7.When the price of a futures contract increases, the margin account ___. |
| of the buyer of the futures contract will be credited for the gain |
| of the seller of the futures contract will be debited for the loss |
| Both 1 and 2 |
| None of the above |
| Q8.Do institutional investors pay lower margins than the individual investors for derivatives trading - State True or False? |
| True |
| False |
| Q9.The option premium paid by the option buyer remains with the exchange till the time it is closed out or expired. |
| True |
| False |
| Q10.Beta is a measure of systematic risk of a security that cannot be avoided through diversification. |
| True |
| False |