NISM Series VIII - Equity Derivatives Paper - 24

 607
Q1.The clearing corporation may utilize the client account margins deposited with it for fulfilling the dues which a clearing member may owe to the clearing corporation for the trades on the clearing member's own account. Is the state True or False?
  True
  False
 
Q2.A clearing member has deposited eligible liquid assets of Rs.75 lacs. The exchange has a minimum liquid net worth requirement of Rs. 50 lakhs. The member has not entered into any transactions so far. What is the margin available for trading? (in lakhs)
 75
 50
 25
 125
 
Q3.Is it true that an efficient cash market is required for an efficient futures market? Yes or No?
 Yes
 No
 
Q 4.If the price of a futures contract increases, the mark to market margin account of the holder of the short position in that contract is credited for the gain. State whether True or False?
  True
  False
 
Q5.The absolute amount of minimum capital adequacy requirement for derivative brokers is the same as that for the cash market - True or False?
  True
  False
 
Q 6. Change in option premium for a unit change in __ is known as Rho.
 market volatility
 Price of the underlying asset
Risk-free interest rate
 liquidity
 
Q7.The idea and economic rationale of introducing forward contracts are to__.
 help arbitrage
 help trading
help hedging
 both 1 and 3
 
Q8.The asking price is the price at which___
 the cleaning corporation settles the transaction
 the trader is prepared to sell the share
 the trader is prepared to purchase the share
 the trader is prepared to either buy or sell the share
 
Q 9. In India, futures and options on individual stocks are allowed on____.
 A few selected stocks only
 All stocks listed on any of the exchanges
All stocks with a stock price of more than Rs.100 or Rs 50 in A and B group resp.
Only those stocks which are simultaneously listed on all the stock exchanges in India
 
Q10.Higher the price volatility, higher would be the initial margin requirement - State True or False?
  True
  False

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