Derivative Question - Set 16
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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
The operating ranges that are applicable in the stock and index futures segment are _____
Question 2 of 25
Call option seller will have the obligation to buy if the call option buyer exercises his right.
Question 3 of 25
Contract cycle expires on
Question 4 of 25
Proprietary positions of TM are calculated on ______
Question 5 of 25
A collar strategy is an extension of____________ strategy
Question 6 of 25
Scrips or portfolios having beta greater than 1 are called conservative scrips or portfolios respectively.
Question 7 of 25
Which is the minimum tick size in case of futures contract
Question 8 of 25
The beta of ABC Bank is 1.5. A person has a long position of Rs. 8,00,000 of ABC Bank. Which of the following gives a
Question 9 of 25
Which of these CALL options are OTM?
Question 10 of 25
MTM settlement of Future contracts are done on ______ basis.
Question 11 of 25
Spread is nothing but two opposite positions (one long and one short) taken either in two contracts with same maturity on
different products or in two contracts with different maturities on the same product
Question 12 of 25
Cash dividend is an example of ______________
Question 13 of 25
Index futures and Index Options are
Question 14 of 25
Specific risk ( A component of Price Risk) cannot be reduced by portfolio diversification.
Question 15 of 25
Inter Exchange arbitrage refers to two positions on the same contract in two different markets or exchanges
Question 16 of 25
Cross margining between cash and derivative segments of an exchange helps reduce the overall margin level applicable
to investors and traders – State True or False ?
Question 17 of 25
The ICAI has issued guidance notes on accounting of index and stock futures and options contracts from the view of
Question 18 of 25
For a buyer of a call option
Question 19 of 25
You own a portfolio of various stock for long term but currently you are unsure of the market. The best possible action to
safe guard your investments is :
Question 20 of 25
An investor buys TCS for Rs. 575 in the futures market. At the end of the day TCS futures closes at Rs. 500 in the futures
market. What is the mark to market the investor is making / losing ? (1 lot of TCS = 1000 shares)
Question 21 of 25
An investor sells 3 lots of ABC futures at Rs. 5231 each. On that day ABC closes at Rs.5310 in the futures market. What is
the mark to market for the investor if any? One lot of ABC is 50 shares
Question 22 of 25
_________ Option gives the buyer the right but not the obligation to sell a given quantity of the underlying asset at a given
price on or before a given date
Question 23 of 25
The payoff for a person who sells a futures contract is similar to the payoff for a person who _______ an asset.
Question 24 of 25
A simple arbitrage occurs when a trader sells an asset cheaply in one location/ exchange and simultaneously arranges to
buy it at another location/ exchange at a higher price
Question 25 of 25
Impact Cost is a Measure of Liquidity – True or False ?