NISM Series VIII - Equity Derivatives Paper - 10
| Q1.There is only CASH settlement for Nifty futures contract - State True or False? |
| True |
| False |
| Q2.A Mutual Fund floats a new fund offer of a 100% equity scheme. Till the time it invests this cash inequity, the fund can take equity exposure by buying stock index futures - State True or False? |
| True |
| False |
| Q 3.A writer of a naked PUT option is ____. |
| Bullish and pays the premium |
| Bullish and receives the premium |
| Bearish and pays the premium |
| Bearish and receives the premium |
| Q 4.The potential exposure is calculated by the clearing corporation ___. |
| on the last trading day of the contract month |
| on the last trading day of the week |
| at the end of the trading day |
| on real-time basis |
| Q5.If a Trading member defaults in the derivative segment, he can still continue the trading business in the cash segment. - True or False? |
| False |
| True |
| Q6.The Spot price ie. the market price of a share is Rs 200 and the interest rate is 12% pa. Which of the below price is closest to 3 months' future maturity? |
| 206 |
| 200 |
| 203 |
| 224 |
| Q7.Mr. Manoj buys a put option on QPR stock for Rs 20 of strike price Rs 130. If on the exercise day, the spot price of QPR is Rs 175, Mr. Manoj will choose ____. |
| Not to exercise the option |
| To exercise the option |
| Mayor may not exercise the option depending on whether he is in his city or not at that time |
| Mayor may not exercise the option depending on whether he likes the company or not |
| Q 8. A long position in the futures market can be reversed only with the same counterparty from whom the contract was initially purchased - State whether True or False? |
| True |
| False |
| Q 9.If you have sold an ITC Ltd. futures contract (contract multiplier 500) at 200 and bought it back at 228, what is your gain/loss? |
| A gain of RS. 6,800 |
| A loss of Rs. 6,800 |
| A loss of Rs. 14,000 |
| A gain of Rs. 14,000 |
| Q10.If the price of a stock is volatile, then the option premium would be relatively ___. |
| Lower |
| Higher |
| No effect of volatility |
| zero |