NISM Series VIII - Equity Derivatives Paper - 23

 921
Q 1. In a derivatives exchange, the net worth requirement for a clearing member is higher than that of a non-clearing member – State whether True or False?
  True
  False
 
Q2.Position limits have been designed to ____.
 prevent the markets from being wrongly influenced by Government policies
 support the market and determine its movements
 stop the markets being wrongly influenced by the trading activities of investor(s)
 all of the above
 
Q3.What does Value-at-risk measure?
 value of a volatile portfolio
The risk level of a financial portfolio
 Value of illiquid shares portfolio
 Index PE value
 
Q4.An investor who is risk-averse will invest more in Fixed Income and Debt instruments than in equity market-related investments.
  True
  False
 
Q5.Of the below-mentioned options, in which option is the strike price better than the market price and therefore it is profitable to exercise the option?
 At-the-money option
Out-of-the-money option
 In the money option
 None of the above
 
Q6.At the time of final settlement, the seller/writer of the option will recognize the adverse difference he paid to the buyer as _ in his profit and loss account.
 Expenses
 Loss
 Debt
 Profit
 
Q7.A put option gives the buyer the right to _____.
 Buy the underlying at market price
Buy the underlying at a set price
 Sell the underlying at market price
Sell the underlying at a set price
 
Q8.Of the below options, when will the April index future contract be introduced on NSE?
 On the 1st trading day after last Thursday in March
 On the 1st trading day after last Friday in March
 On the 1st trading day after last Thursday in January
 On the 1st trading day after last Friday in January
 
Q9.Contract month is the month in which futures contract –
 Expires
 Are at the lowest price
 Are at its highest price
 None of the above
 
Q10.As per the rules, the minimum net worth of clearing members who handle and clear/settles only deals executed by him is higher than those clearing members who handle institutional trades.
  False
  True

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