NISM Series VIII - Equity Derivatives Paper - 22
| Q1.The system in which trading is done through various computers which are attached to a central computer is called Online trading. |
| False |
| True |
| Q2.An option with zero intrinsic value is called ____. |
| OTM - Out of The Money option |
| ATM - At The Money option |
| ITM - In The Money option |
| Both - At The Money and Out of The Money options |
| Q3.An exchange-traded option after maturity ____. |
| Can be traded after 2 days ie. after pay-in / payout. |
| Can be traded in the spot market |
| Cannot be traded |
| None of the above |
| Q4.Tick size depends on – |
| The Delta of the security |
| It's fixed by the exchange |
| Volume in that security |
| The Interest rates |
| Q5.If you are a seller of a put option, you expect _____. |
| No change in the price |
| Increase in the price |
| Decrease in the price |
| Both 1 and 2 |
| Q 6. To whom is a high impact cost beneficial? |
| Only buyers |
| Only sellers |
| Neither buyers nor sellers |
| Only arbitrageurs |
| Q 7.The Option which gives its holder a positive cash flow is called a ____. |
| At the money option |
| Out of the money option |
| In the money option |
| Delta |
| Q8.The major reason for collecting a high initial margin is to improve the solvency of the clearing corporations. |
| True |
| False |
| Q 9. A call option gives its holder the right to buy ‘any quantity of the underlying asset from the writer of the call option at a pre-specified price - State True or False? |
| True |
| False |
| Q10.A short position in a PUT option can be closed out by taking a long position in the same PUT option - State True or False? |
| False |
| True |