NISM VIII MOCK TEST-3

Derivatives refer to—

Which is the ratio is generally used to gain an idea of how time decay is affecting your option positions.

Forwards are —-

Which of the following document informs clients about the kind of risks that derivatives can involve for the client?

If a person buy a call at strike price of $200 what does it mean?

Which of the following is a feature of forward?

If you sold 3 XYZ Stock Futures contract at Rs. 990 and the lot size is 200. What is your profit (+) or loss (-). If you purchase the contract back at Rs. 982?

Forward help in avoiding —-

— is the change of an option premium for a given change (typically 1%) in the underlying volatility.

Which of the following is a problem associated with forward?

Trading Members are required to maintain trade confirmation slips and exercise notices from the trading system for a period of—

If a person sell a put at strike price $450 what does it mean?

Which of the following derivative contract can be customized as per the requirement?

— is an agreement made through an organized exchange to buy or sell a fixed amount of a commodity or a financial asset on a future date at an agreed price.

—- is minimum move allowed in the price quotations.

A person placed an order to buy 550 shares of ONGC 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?

Which of the following is closest to the forward price of a share if Cash Price = Rs.950| Forward Contract Maturity = 6 months from date,|Market Interest rate = 10%?

An option under which he can exercise his right at any time on or before the expiry date/day of the contract.

If an investor goes long in underlying and also in put it is known as:

In case of option trading which of the following is required to submit the margin to exchange?

Which of the following is an 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.

— involves two options of different strike prices and same maturity

If you sell a put option with strike of Rs 174 at a premium of Rs.4.How much is the maximum gain that you may have on expiry of this position if spot price is 185?

Mr Y buy an option but he can exercise his right under option only on the expiry date/day of the contract. What type of options referred here?

In case of option the margin account is debit or credit on:

—– 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.

Which of the following is correct statement regarding Swap?

The sales agent while dealing with clients should :

Which of the following is an advantage of derivative?

Which of the following is a significance of index?

— is the change in option price given a one percentage point change in the risk-free interest rate.

Mr W buy a put at strike price of $920 and paid a premium of $ 60 and the spot price in market of underlying is $1020.The call is:

— involves two options of same strike prices and same maturity

The Know your client policy need to be exercise at which of the following stage:

If an investor goes short in stock and in put it is known as:

—-refers to when securities professionals making unnecessary and excessive trades in customer accounts for the sole purpose of generating commissions.

If an option is out of the money the entire option premium is equal to:

— are the maximum exposure levels which the entire market can go up to and each Clearing Member or investor can go up to.

The customer due diligence (“CDD”) measures comprises the following except:

Current Price of KPL Stock is Rs 3000. Rs. 2955 strike call is quoted at Rs 55. What is the BEP and profit or loss?

In case of future since profits and losses are settled on day-to-day basis who collects these margins from the loss making participants and pays to the gainers on day-to-day basis.

Net option value:

Call option intrinsic value refers to:

Which option pricing model is referred here:The price evolution of the option’s underlying asset at equally-spaced time steps from today under the assumption that at each step the price can only move up and down at fixed rates and with respective simulated probabilities.

If a person goes long in stock and short in call it is:

—-is a quasi-judicial process of settlement of disputes between Trading Members and Investors and Clearing Members and also between Investors and Issuers.

Which of the following are an essential attribute of an index?

—measures the sensitivity of a stock / portfolio vis-a-vis index movement over a period of time, on the basis of historical prices.

— 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.

If an index is constructed by method of free float market capitalisation which of the following is correct?

Index derivatives are most useful as a tool to hedge against the—

Increase in which of the following will increase the value of put option:

Any person who has a grievance against a listed company or against any market intermediary can file a complaint using—–

Anybody interested in taking membership of F&O segment is required to take membership of—

You buy a call option on a share. The strike price of the call was Rs300 and you paid a premium of Rs 9. If the spot price is 305. What is the time value of the option?

Put option intrinsic value refers to:

Variability in a security’s total returns that are directly associated with overall movements in the general market or economy is—

If a person goes long in put and stock and short in call it is:

Which of the following are compliance requirement which need to be filled in Client broker relationship?

Under cash and carry model the future fair price is:

If a person goes long in put his maximum loss is:

Which of the following is a characteristics of Exchange traded fund?

Current Price of PQR Stock is Rs 452. Rs. 448 strike put is quoted at Rs 5. What is the exercise value?

Which of the following is correct regarding the settlement basis of future contract?

— is the component of price risk that is unique to particular events of the company and/or industry.

SEBI has power for which of the following :

Who is eligible for clearing trades in index options?

If convenience yield is zero then the future price less than spot price the market is:

Which of the following is the responsibility of clearing corporation?

An option buyer pays a relatively small premium for market exposure in relation to the contract value. This is known as—

—- are responsible to collect and settle the daily MTM profits/losses incurred by the TMs and their clients clearing and settling through them.

Which of the following is the objective of Trade Guarantee Fund?

Increase in which of the following will decrease the call option value:

Value-at-risk provides the ______________.

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 _______________.

. A defaulting member’s clients’ positions could be transferred to ____________ by the Clearing Corporation.

If an investor buys a call option with lower strike price and sells another call option with higher strike price, both on the same underlying share and same expiration date, the strategy is called ___________.

. In which option is the difference between stock and strike price is advantageous to the option holder and therefore it is profitable to exercise the option?

A put option gives the buyer a right to sell how much of the underlying to the writer of the option?

What role do speculators play in the futures market?

. Selling short a stock means ___________.

. The buyer of an option cannot lose more than the option premium paid.

. Operational risks include losses due to ____________.

Mr P is bearish on WER Ltd. Stock and wants to know in which case his profit will be unlimited and loss will be limited?

Which of the following are the tailor made contract of derivative?

Mr J has taken a long position in call and paid $20 premium and at strike price of $456. If current price is $500 . The call is

If the spot price of underlying is equal to the strike price of put, the option is:

— establish an efficient link between different markets.

Which of the following is required for a contract in derivative to be a legal and valid contract?

Higher the price volatility in the underlying asset the initial margin requirement for futures —

—is the relationship between futures prices and spot prices.

All member brokers in the derivative segment should be inspected by the exchange at least once a year.

If a person goes short in call or put he will never have a positive pay off.

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 Contango market.

If price of a futures contract decreases, the margin account of the buyer of this futures contract is credited for the loss.

Clients’ positions cannot be netted off against each other while calculating initial margin on the derivatives segment.

On the derivative exchanges, all the orders entered on the Trading System are at prices exclusive of brokerage.

When the near leg of the calendar spread transaction on index futures expires, the farther leg becomes a regular open position.

Impact cost is low when the liquidity in the system is poor.