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—- is an agreement made directly between two parties to buy or sell an asset on a specific date in the future at the terms decided today.
According to Securities Contracts Act 1956 derivatives refer to—
Which of the following is least likely the cause of derivative market growth?
Which of the following is included in term securities under Securities Contracts Act 1956?
Forwards are —-
Which of the following is a significance of index?
Which of the following is not a feature of forward?
You bought 15 PQR Stock Futures contract at Rs. 475 and the lot size is 120. What is your profit (+) or loss (-) if you purchase the contract back at Rs. 500?
Active calls/put means:
Which of the following is a drawback of forward contract?
If an index is constructed by method of free float market capitalisation which of the following is correct?
Which of the following is an advantage of trading in future as compared to forwards?
If an existing security fails to meet eligibility criteria for —– consecutively then no fresh month contract shall be issued on that security.
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.
SEBI has power for which of the following except :
You have taken a long position of one contract in August KLM futures (contract multiplier 25) at a price of Rs. 2450. When you closed this position after a few days you realized that you made a loss of Rs. 15000. Which of the following closing actions would have enabled you to generate this loss? (You may ignore brokerage costs.)
Which of the following is correct statement regarding Swap?
Index derivatives are most useful as a tool to hedge against the—
What is the maximum trading cycle of a stock option contract?
Which of the following is a reason why trading in derivative is preferred over trading in underlying asset?
Which is the ratio is generally used to gain an idea of how time decay is affecting your option positions.
— is issued by the members of Exchanges and contains important information on trading in Equities and F&O Segments of exchanges.
Which of the following is not a characteristics of Exchange traded fund?
You write a call option on a share. The strike price of the call was Rs725 and you received a premium of Rs 52 from the option buyer. Theoretically what can be the maximum loss on this position?
The difference e between the spot price and the futures price is called—
— is an order to buy or sell a contract at the best bid/offer price currently available in the market.
An in-the-money option is _____________.
Which of the following are the objectives of SEBI?
Trading Members are required to maintain trade confirmation slips and exercise notices from the trading system for a period of—
. Current Price of WAY Stock is Rs 4925. Rs. 4855 strike call is quoted at Rs 45. What is the profit or loss?
Which of the following is the responsibility of clearing corporation?
If magnitude of movement in the underlying asset’s price either up or down is low the call option value will—- and put option value will—:
Mr Y placed an order to buy 500 shares of DXC Ltd. But only the order of 200 shares can be fulfilled at his bid price and the order of remaining 300 shares were cancelled immediately. What type of order is this?
Initial margin collection is monitored by the _________.
The amount one needs to deposit in the margin account at the time of entering a futures contract is known as —
A penalty or suspension of registration of a stock broker from derivatives exchange/segment under the SEBI (Stock Broker) Regulations, 1992 can take place if _______________.
If you have bought a PQY futures contract (contract multiplier 30) at 585 and sell it at 625, what is your gain/loss?
— is the change in option price given a one percentage point change in the risk-free interest rate.
Which of the following are compliance requirement which need to be filled in Client broker relationship?
Which of the following is required to pay option margin?
In case of futures profits and losses are settled on day-to-day basis called—
Buy a call means:
— is the total number of contracts outstanding for an underlying asset.
Mark-to-market margins are collected ___________.
If you buy a put option with strike of Rs 1055 at a premium of Rs.55.How much is the gain if the spot price is Rs 1095 that you may have on expiry of this position?
Which of the following are the functions of branch manager as user of trading system?
—indicates the price range within which a contract is permitted to trade during a day.
—involve combining options on the same underlying and of same type (call/ put) but with different strikes and maturities.
Under which of the following options the person is obliged to buy the underlying?
— in futures market means a long or short position in any futures contract without having any position in the underlying asset.
If you buy an put option what is your maximum possible profit and loss:
Which of the following has linear pay off:
Which of the following is an assumption of cash and carry model?
. A trader is bullish on stock of XYZ and will 100 shares of XYZ at Rs 885 per share. He does not want to pay more than Rs 885.What type of order should he place?
The main objective of Trade Guarantee Fund (TGF) at the exchanges is _________________.
In India index option are:
— involves two options of same strike prices and same maturity.
If futures price is lower than spot price of an asset, market participants may expect the spot price to come down in future. This expectedly falling market is called:
Any person who has a grievance against a listed company or against any market intermediary.That person can file a complaint using—–
—may clear and settle their own proprietary trades, their clients’ trades as well as trades of other TM’s & Custodial Participants.
You buy put at strike price of $1042 and paid premium of $52 and the spot price is $1000.What is the profit or loss of trader?
For an option the intrinsic value refers to the amount by which option is—
— risk could be reduced to a certain extent by diversifying the portfolio.
Long strangle is a — strategy.
—- is the price per share for which the underlying security may be purchased or sold by the option holder.
— functions as a reference for all users of a particular trading member.
The Know your client policy need to be exercise at which of the following stage:
If you buy a call at strike price $450 and received a premium of $20 and if current strike price is $ 425, the call is:
—measures the sensitivity of a stock / portfolio vis-a-vis index movement over a period of time, on the basis of historical prices.
Option premium is composed of:
The purchase of a share in one market and the simultaneous sale in a different market to benefit from price differentials is known as ____________.
—– is an act to prevent money laundering and to provide for confiscation of property derived from or involved in money laundering and for related matters.
— is used to determine initial margins on various positions, its basic objective is to determine the largest possible loss that a portfolio might reasonably be expected to suffer from one day to the next.
Current Price of XYZ Stock is Rs 725. Rs. 865 strike call is quoted at Rs 35. What is the BEP and profit or loss?
A collar can be created:
Trading member are member of:
Active calls/put means:
You buy 15 future contract of lot size 30 at strike price of $842, if current price is $850, your pay off will be:
Daily settlement price for futures contracts shall be based on the:
If a person is bearish on the underlying in long run but wants to hedge himself against short term price in underlying price for this he can do:
An option with a delta of 0.25 will change in value approximately by how much if the underlying share price decreases by Rs 5?
You buy put at strike price of $1590 and paid premium of $52 and the spot price is $1240.What is the pay off?
If future price is less than spot price and high convenience yield. The market is—
Covered call is similar to:
Which of the following is required for a contract in derivative to be a legal and valid contract?
The last Thursday of respective month or the day before if the last Thursday is a trading holiday is the — of future contract.
— take the risk which hedgers plan to offload from their exposure.
Synthetic short put can be created by:
—is the relationship between futures prices and spot prices.
Higher the price volatility in the underlying asset the initial margin requirement for futures —
If the interest rate increases the put price will:
When establishing a relationship with a new client, the trading member takes reasonable steps to assess the background, genuineness, beneficial identify, financial soundness of such person and his investment/trading objectives.
As sales is an integral part in financial services, proper advice to the customers is not important only making sales of financial product is important.
If price of a futures contract decreases, the margin account of the buyer of this futures contract is debited for the loss.
Clients may trade through various trading members but settle through a single clearing member.
The level of open interest indicates depth in the market.
Clearing corporation on a derivatives exchange becomes a legal counterparty to all trades and be responsible for guaranteeing settlement for all open positions.
A default by a member in the derivatives segment will be treated as default in all segments of that exchange and as default on all exchanges where he is a member.
Orders placed at prices which are beyond the operating ranges would reach the Exchange as a price freeze
When establishing a relationship with a new client, the trading member takes reasonable steps to assess the background, genuineness, beneficial identify, financial soundness of such person and his investment/trading objectives.
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