Derivative Question - Set 12
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1. This is a Mock Examination of NISM-Series-XVIII: Financial Education Certification Examination.
2. This mock test has 50 questions of 1 marks each. Please note that the actual examination for NISM Series XVIII: Financial Education Certification Examination has 50 questions of 1 mark each.
3. There is no negative marking.
4. The passing score for the examination is 60%
5. This mock examination is only to give the candidates an experience of NISM testing system.
6. Please note that passing this mock test would not make you eligible for claiming a certificate for NISM-Series-XVIII: Financial Education Certification Examination.
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Question 1 of 25
Option buyer or holder will exercise his option only when the situation is favourable to him. He is not under any obligation
Question 2 of 25
What could be the maximum loss for a Seller of Options Contract
Question 3 of 25
Its possible to draw the payoff charts for Time spreads
Question 4 of 25
In the Arbitration procedure, the arbitrator conducts the arbitration proceeding and passes the award normally within a
period of _______months from the date of initial hearing.
Question 5 of 25
_________________ being anticipated profit should be ignored and no credit for the same should be taken in the profit and
Question 6 of 25
____________ is charged on the net exercise settlement value payable by a Clearing Member towards final exercise
Question 7 of 25
An Investor buys WIPRO shares to the tune of Rs 5 lakh. The beta of Wipro is 1.03. In order to hedge the portfolio he does
SHORT NIFTY to the tune of Rs 5.5 lakh. Which is true:
Question 8 of 25
_________________ is an option that would lead to a negative cash flow if it were exercised immediately.
Question 9 of 25
Open interest is maximum in
Question 10 of 25
What is the minimum value in case of futures contracts
Question 11 of 25
What could be the maximum profit for a Seller of Options Contract
Question 12 of 25
Mohan owns 2000 shares of Reliance Industries. around budget time, he get uncomfortable with the price movements.
which of the following will give him the hedge he desires? Assume Reliance Industries is eligible for Derivatives trading and its
lot size as 500.
Question 13 of 25
___________is the rate of change of the option’s Delta with respect to the price of the underlying asset.
Question 14 of 25
SEBI’s centralized web based complaints redress system which provides online access 24 x 7 is called ____________.
Question 15 of 25
A penalty or suspension of registration of a stock broker from derivatives exchange/segment under the SEBI (Stock
Broker and Sub-broker) Regulations, 1992 can take place if _______________.
Question 16 of 25
A trader believes that the future price of PQR company will rise and being a smart trader he will ________________ .
Question 17 of 25
When the price of a futures contract goes down, the margin account of the buyer of this futures contract is debited for the
loss – True or False ?
Question 18 of 25
On 15th April Future Price of ABC Ltd is Rs 140 and Spot price of ABC is Rs 138. Spot closed on expiry date at Rs 142.
What should be the future price of ABC on expiry date?
Question 19 of 25
When you buy a put option on a stock you currently own, this strategy is called _____________ .
Question 20 of 25
A Put Option:
Question 21 of 25
What role do speculators play in the futures market?
Question 22 of 25
You are the owner of a 15 million portfolio with a beta 1.0. You would like to insure your portfolio against a fall in the
index of magnitude higher than 10%. Spot Nifty stands at 9000. Put options on the Nifty are available at three strike prices.
Which strike will give you the insurance you want?
Question 23 of 25
You have 100 Reliance shares bought at 1000 in your portfolio. How do you hedge it? CMP is Rs1000.
Question 24 of 25
Cash and carry arbitrage refers to a long position in the cash or underlying market and a short position in futures market
Question 25 of 25
Long hedge is the transaction when we hedge our position in cash market by going long in futures market