NISM Series VIII - Equity Derivatives Paper - 07
| Q1.When a Client default in making payment in respect of Daily Settlement, the action taken is ____. |
| the client is given 2 days to clear the payments |
| the contract is closed out |
| the broker pays the money and the client refunds to him in 7 working days |
| the client can give a bank guarantee in 2 working days to avoid the contract being closed out. |
| Q2.The option premium is decided by ____. |
| SEBI |
| Stock Exchanges |
| By buyers and sellers |
| By Stock Brokers |
| Q3.Equities can also be traded through Professional Clearing Members. |
| True |
| False |
| Q4.ETFs are a basket of securities that trade like an individual stock on an exchange- True or False? |
| True |
| False |
| Q5.Mr. A wants to sell stock options but he does not own the underlying stock. Can he do it in India? |
| Yes |
| No |
| Q6.The intrinsic value of an option __. |
| Is the difference between the spot price and the strike price of an in-the-money option |
| Is zero for at the money options |
| Is called the time value of the option |
| Both 1 and 2 |
| Q7.Brokers are allowed to and expected to fund margin requirements of their clients - State True or False? |
| True |
| False |
| Q 8. When the price of a futures contract rises, the margin account ____. |
| of the buyer is credited for the gain |
| of the seller is debited for the loss |
| Both 1 and 2 |
| None of the above |
| Q9.A short position in a futures contract can be reversed only with the same counterparty to whom the contract was originally sold - State True or False? |
| True |
| False |
| Q10.A trader sells a PUT option of strike Rs 100 on ABC stock for a premium of Rs 25. On expiry day, the ABC stock closed at Rs 50. What is the trader's profit or loss in Rs. ? ( Lot size is 1000 ) |
| 25000 |
| -25000 |
| 50000 |
| -50000 |