NISM Series VIII - Equity Derivatives Paper - 05
Q1.A Professional Clearing member of derivatives segment ___. |
should also be a member of the cash segment |
should also become a member of the cash segment within 2 years |
provides trading facility to its clients |
does not have any trading rights |
Q2.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 |
Q3.Theta is a measure of the sensitivity of an option price to changes in market volatility. - State True or False? |
True |
False |
Q4.When the strike price increases, the premium on call option decreases - State True or False? |
True |
False |
Q5.You sold one ABC stock futures contract at Rs.268 and the lot size is 1,500. What is your profit (+) or loss (-), if you purchase the contract back at Rs.274? |
9000 |
18000 |
-9000 |
-18000 |
Q6.The Intrinsic Value is zero for out-of-the-money options but always positive for in-the-money options - State True or False? |
True |
False |
Q7.A stock index like Nifty ___. |
is a basket of stocks |
can be easily manipulated |
Both 1 and 2 |
None of the above |
Q8.When a call option on an index is exercised, the option holder will receive from the option writer, a cash amount equal to the excess of spot price (at the time of exercise) over the strike price of the call option - State True or False? |
True |
False |
Q9.There is higher flexibility in fixing forward contract specifications as compared to futures contract specifications - State True or False? |
True |
False |
Q10.Delivery-based settlement in single stock futures is provided by __. |
BSE |
NSE |
OTHER |
Both BSE and NSE |