NISM Series VIII - Equity Derivatives Paper - 17
| Q1.The Final Settlement Price in Options is the Closing price of such underlying security on the last trading day of the options contract - True or False. |
| True |
| False |
| Q2.The intrinsic value is the difference between the Market Price and Strike Price of the option and it can never be negative. |
| True |
| False |
| Q3.A fall in the price of Wipro stock increases the value of the Wipro call option - State True or False? |
| True |
| False |
| Q4.In the Straddle Strategy, both options have the same strike price but in Strangle strategy, the strike prices are different and are mostly out of the money options- True or False? |
| False |
| True |
| Q 5.The securities or money deposited by clients ____. |
| will be as per brokers rules and regulations |
| can be used as per the decision of Clearing Corporation and the broker |
| can be attached for meeting broker’s obligation on his proprietary account |
| cannot be attached for meeting broker’s obligation on his proprietary account |
| Q6.Nifty consists of securities having ____ market capitalization stocks. |
| Large |
| Medium |
| Small |
| All of the above |
| Q7.When a trader buys a put option, he has an – |
| Mixed view |
| Bearish view |
| Bullish view |
| Confused view |
| Q8.When SEBI has approved the approved bye-laws of a derivative exchange, the exchange is free to introduce futures contracts on any number of stocks and it does not require to go to SEBI every time - State True or False? |
| True |
| False |
| Q9.**Higher the interest rate, higher will be the option premium - True or False? |
| True |
| False |
| Q10.In an ‘Opening Buy Transaction,’ the effect will be that of creating or increasing _. |
| Arbitrage position |
| Cross position |
| Long position |
| Short position |