NISM Series VIII - Equity Derivatives Paper - 18
| 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 |