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Q1.Does the Clearing Corporation give exposure limits to Clearing Members based on the number of Trading Members using the services of that Clearing Member - State True or False?
  True
  False
 
Q2.Arbitrage is simultaneous purchase and sale of an asset or replicating asset in the market in an attempt to profit from discrepancies in their prices - State True or False?
  True
  False
 
Q3.The seller or writer of an option is required to pay the initial margin for entering into the option contract. Where is this shown in the balance sheet?
 Under Current Assets
 Under Current Liabilities
 Under Fixed Assets
 Under Fixed Liabilities
 
Q 4. The absolute amount of minimum capital adequacy requirement for a derivative clearing member is higher than that of spot market - State whether True or False?
  True
  False
 
Q5.Which Option gives the holder a right to buy the underlying asset on or before a particular date for a certain price?
 European call option
 European put option
 American call option
 American put option
 
Q6.Foreign Exchange can be a part of liquid assets to be maintained by Clearing Members with the clearing corporation - State True or False?
  True
  False
 
Q7.The book network criterion for Professional Clearing Members is the same as that for Trading cum Clearing members - State True or False?
  True
  False
 
Q8.Theta is the rate of change in option premium for a unit change in ___.
 volatility
 price of the underlying asset
 time to expiry
 interest rates
 
Q9.What is the role of speculators in the market?
They stabilize the markets
 They reduce their risks by speculating
 They maintain the Dollar-Rupee price parity
 They add to the liquidity in the futures market
 
Q 10. Which of the following options will result in the creation of a BEAR SPREAD?
Selling one call at a lower strike and buying another call at the higher strike price
 Buying one put and buying one call at the same strike
 Selling one call and buying two puts at the same strike
 None of the above

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