NISM Series VIII - Equity Derivatives Paper - 21
| Q1.What does Beta of 1 mean? |
| It means that the expected percentage in stock price will be more than the percentage change in the index |
| It means that the expected percentage in stock price will be twice the percentage change in the index |
| It means that the expected percentage in stock price will be less than the percentage change in the index |
| It means that the expected percentage in stock price will be equal to the percentage change in the index |
| Q2.Loss on derivative transactions can be set off against any other income during the year. In case the same cannot be set off, it can be carried forward to the subsequent assessment year and set off against any other income of the subsequent year. Such losses can be carried forward for a period of _ assessment years. |
| 4 |
| 8 |
| 12 |
| 16 |
| Q3.Which tax is applicable for equity transactions done on a recognized stock exchange? |
| Securities Trading Tax |
| Equity Trading and Service Tax |
| Derivatives Transaction Tax |
| Securities Transaction Tax |
| Q4.Among the following options, in which future contract, the contract cannot be used as a means to acquire the underlying asset? |
| Copper |
| Gold |
| Individual securities |
| Stock index |
| Q5.The daily Mark to Market gain or loss is realized ___. |
| in the equity spot market |
| in the futures market |
| in Swap trading |
| in forwards market |
| Q6.A trader sells a QPR stock Put contract of Rs 200 strike for Rs 50. The lot size is 1500. What is the profit /loss if he buys the Put back at Rs 28? (in Rs) |
| 28500 |
| -28500 |
| 33000 |
| -33000 |
| Q7.The features of Futures are quite similar to ___. |
| Options |
| Swaps |
| Debentures |
| Forwards |
| Q8.If the far month futures prices are less than near month futures prices, this is known as __. |
| Delta Hedging |
| Contango |
| Basis |
| Backwardation |
| Q9.Cross margining between cash and derivative segments of exchange helps reduce the overall margin level applicable to investors and traders - State True or False? |
| True |
| False |
| Q10.The net worth requirements of Clearing Members and Trading Members is the same for the derivatives exchange - State True or False? |
| True |
| False |
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