NISM Series VIII - Equity Derivatives Paper - 04
| Q 1.A Broker or Dealer who is already registered with an existing stock exchange will have to get additional registration for the Derivative Exchange - True or False? |
| True |
| False |
| Q 2. The cash component of Liquid Securities can include Units of money market mutual funds and Gilt funds where an applicable haircut is 10%. – True or False? |
| True |
| False |
| Q3.As per J.R.Verma Committee recommendations, Volatility should be calculated based on ___ of logarithmic daily returns. |
| Variance |
| Delta |
| Standard Deviation |
| CAGR |
| Q 4. The Indian Stock Future Markets deals in ____. |
| Swaps |
| Equity Cash |
| Equity Derivative |
| All of the above |
| Q5.Impact cost is low when ___. |
| volume/ liquidity is low |
| volume/ liquidity is high |
| the scrip is trading at an all-time high |
| the scrip is trading at an all-time low |
| Q6.In the Options segment, if you buy a CALL, you expect the market/scrip to move __ |
| Down |
| Up |
| One cannot buy a Call-in options market |
| Remain range-bound |
| Q7.An investor who is less risk-averse would like to have greater exposure to equity and other risky investments compared to fixed income instruments - State True or False? |
| False |
| True |
| Q8.Forward contracts are OTC contracts - True or False? |
| True |
| False |
| Q9.Excess of premium in an option over the intrinsic value is known as the time value - State True or False? |
| False |
| True |
| Q10.The simultaneous purchase and sale of two different tenors futures contracts in the same underlying is known as a ___. |
| Limit order |
| Short hedge |
| Spread trade |
| Long hedge |