NISM Series VIII - Equity Derivatives Paper - 23
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 |