Derivative Question - Set 13
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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
Unsystematic risk can be completely avoided while investing in securities.
Question 2 of 25
In case of open position of any Client exceeding the specified limit , the penalty charged on the clearing member for each
day of violation would be
Question 3 of 25
___________is a measure of the liquidity of the market
Question 4 of 25
The ___________________ of the option is required to pay initial margin for entering into the option contract.
Question 5 of 25
The buyer of an option cannot lose more than the option premium paid.
Question 6 of 25
At expiration the time value of an Option will be
Question 7 of 25
Clearing corporation on a derivatives exchange becomes a legal counterparty to all trades and be responsible for
guaranteeing settlement for all open positions.
Question 8 of 25
The market wide limit of open position on futures and option contracts on a particular underlying stock is________
Question 9 of 25
Alpha measures the sensitivity of a scrip or portfolio vis-a-vis index movement over a period of time, on the basis of
Question 10 of 25
For individual stocks, it varies from one stock to another. The lot size changes from time to time
Question 11 of 25
Equity Index Options are a form of _________.
Question 12 of 25
Investor A wants to sell 20 contracts of August series at Rs.4500 and Investor B wants to sell 17 contracts of September
series at Rs.4550. Lot size is 50 for both these constracts. The Initial Margin is fixed at 6%. How much Initial Margin is required
to be collected from both these investors (sum of initial margins of A and B) by the broker?
Question 13 of 25
You have bought a stock on the exchange. To eliminate the risk arising out of the stock price, you should _____.
Question 14 of 25
A new contract is introduced on the trading day following the expiry day of the far month contract
Question 15 of 25
Which of these PUT options are OTM?
Question 16 of 25
Market risk or systematic risk can be reduced by using index derivatives
Question 17 of 25
If you purchase a December call option with strike at Rs 50 for a premium of Rs 10. Your breakeven is
Question 18 of 25
The open positions of CM’s are arrived by aggregating the open positions of all the ___________ and all _____________
clearing through him.
Question 19 of 25
if we compute the index based on weights of each security based on non promoter holding, it is called ______
Question 20 of 25
State which of the following statement is correct?
Question 21 of 25
Scrips or portfolios having beta greater than 1 are called aggressive scrips or portfolios respectively.
Question 22 of 25
Arbitragers generally lock in their profits unlike traders who trade naked contracts
Question 23 of 25
Find out the Intrinsic value of a CALL option of ABC. Spot is Rs 2000. Strike is Rs 2020
Question 24 of 25
Nifty futures is trading at Rs. 10,955. An investor feels the market will not go beyond 11,000. He can ____.
Question 25 of 25
Risk arrays for margin calculation are provided to members daily in a file called