NISM Series VIII - Equity Derivatives Paper - 14
Q1.Delta measures the expected change in the option premium for a unit change in __. |
The volatility of an underlying asset |
treasury interest rates |
time to option expiry |
the spot price of the underlying asset |
Q2.The spot price of LKK share is Rs 300, the put option of Strike Price Rs 280 is __. |
In the money |
Out of the money |
At the money |
None of the above |
Q 3.If the Initial Margin is changed then it will apply only to fresh contracts and not to previous outstanding contracts - True or False? |
True |
False |
Q4.Which of the following is not an application of indices? |
index derivatives |
exchange-traded funds |
private equity funds |
Index funds |
Q5.The minimum Networth requirement for a clearing member of Capital Market Segment and F&O segment is – |
Rs 50 lakhs |
Rs 100 lakhs |
Rs 250 lakhs |
Rs 300 lakhs |
Q6.The main logic behind Position limits is to___. |
prevent the market from being unduly influenced by the activities of an individual/group of investors |
prevent the market from being unduly influenced by Central Govt policies |
give direction to the market to move up or down as determined by SEBI |
to encourage high net worth investors to provide direction to the market |
Q 7.A long position in a January future contract can be reversed by a short position in that stock futures of February month – True / False? |
False |
True |
Q8.Impact cost is low when the liquidity in the system is poor |
True |
False |
Q9.Do institutional investors pay higher margins than the individual investors for derivatives trading - State True or False? |
True |
False |
Q10.Non Systematic risks can be reduced by diversifying one’s portfolio – True or False? |
True |
False |