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 |