NISM Series VIII - Equity Derivatives Paper - 19
| Q1.A writer/seller of a deep out of the money CALL option is __. |
| Bullish - receiver of premium |
| Bullish - payer of premium |
| Bearish- receiver of premium |
| Bearish - payer of premium |
| Q2.The Risk-Return profile for a Future contract is symmetric while that of an Option contract is asymmetric - State True or False? |
| True |
| False |
| Q 3.A portfolio with 200 stocks is only half as risky as another portfolio with 100 stocks - State True or False? |
| True |
| False |
| Q 4.Mr. A is a risk-averse investor. He would prefer secure investments like fixed deposits and other debt instruments and not market-oriented investments - State True or False? |
| True |
| False |
| Q5.One can use Index Futures for hedging to eliminate or reduce the __. |
| Unsystematic Risk |
| Systematic Risk |
| Sector-specific Risk |
| Operational Risk |
| Q6._____ is not an application of indices. |
| Venture capital funds |
| Index Funds |
| Index Derivatives |
| Exchange-Traded Funds |
| Q7.It's common to have a derivatives contract without any expiration date - State whether True or False? |
| True |
| False |
| Q8.The strategy in which a trader buys a call option of lower strike price and sells another call option with a higher strike price of the same share and same expiry date is called _____. |
| Butterfly spread |
| Bearish spread |
| Calendar spread |
| Bullish spread |
| Q9.In an equity scheme, the Mutual Fund can hedge its equity exposure by selling stock index futures - True or False? |
| True |
| False |
| Q10.Who monitors the collection of Initial margin and allows exposure to members based on that? |
| The Stock Exchange |
| The Clearing Corporation |
| NSDL or CDSL |
| SEBI |