The parties for the Futures contract have the flexibility of closing out the contract prior to the maturity by squaring off the
transactions in the market. State true or false.

The ratio of change in delta for a unit change in the price of underlying is called ________

Short Hedge is a transaction when the hedge is accomplished by going short in futures market

The option price is the _______.

Horizontal spread involves combining options on the same underlying and of same type (call/ put) but with different strikes
and maturities

An investor buys a 4 lots of Nifty at Rs. 10,500 each. He sells 2 lots at Rs. 10,550 and carries 2 lots for next day. On that
day, Nifty futures closes at Rs. 10,600. What is his total profit/Loss including mark to market profit/Loss? Nifty lot size is 75 .

If trading is for a minimum lot size of 50 units and the index level is around 10,000,then the appropriate value of a single
index futures contract would be_______

A call option:

Sunil purchased a call option on 100 shares of ABC Ltd and the details of the transaction are Spot Market price of ABC Ltd
is Rs 199 and Strike Price is Rs 200 and Option Premium is Rs 5. Which of the following is true

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

A Speculator with a bullish view on a security can _____________

An option which would give a negative cash flow to its holder if it were exercised immediately is known as _______ .

A short position in March Futures contract on XYZ and a long position in the April futures contract on XYZ is an example
of _________________.

______________ options are options that can be exercised only on the expiration date itself

An investor bought a put option on a stock with a strike price Rs. 2000 for Rs. 200. The option will be in the money when
_______.

A calendar spread contract in index futures attracts ___________.

Specific risk ( A component of Price Risk) cannot be completely avoided while investing in securities.

Calendar spread position is computed with respect to the near month series and becomes an open position once the near
month contract expires or either of the offsetting positions is closed

Long strangle is a strategy with __________

ETF’s are eligible for Intraday Trading.

OTC derivative market is highly regulated market because these transactions occur in private among qualified
counterparties

Butterfly spread can be created with ________________

Limited Loss and Potential Unlimited Profit is the risk reward for

Trading member shantilal took proprietary purchase in a march contract. he bought 1600 units @ 1200 and sold 1200 @
1220. The end of day settlement price was 1221. What is the outstanding position on which initial margin will be calculated?

Cost of Carry represents the relationship between ___________ and ______________ Prices