NISM VIII CHAPTER 1

Derivatives refer to—

Which of the following can be a underlying asset in derivative?

Which of the following is least likely the cause of derivative market growth?

Which of the following is an Over The Counter derivative?

Which of the following is a feature of forward?

Which of the following is a problem associated with forward?

Which of the following is a contractual agreement between two parties to buy/sell an underlying asset at a certain future date for a particular price that is pre-decided on the date of contract through an organized and regulated exchange rather than being negotiated directly between two parties.

Which of the following is an not an Exchange traded derivative?

Which of the following is not a feature of Exchange traded derivative

— is a contract that gives the right, but not an obligation, to buy or sell the underlying on or before a stated date and at a stated price.

Which of the following is correct statement regarding Swap?

Which of the following use derivative to reduce their risk associated with underlying asset?

Which of the following try to predict the future movements in prices of underlying assets and based on the view, take positions in derivative contracts?

Which of the following is an condition to say arbitrage occur?

Which of the following is a reason why trading in derivative is preferred over trading in underlying asset?

Which of the following is an advantage of derivative?

— is issued by the members of Exchanges and contains important information on trading in Equities and F&O Segments of exchanges.