Derivative Question - Set 24
0 of 25 questions completed
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.
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading...
You must sign in or sign up to start the quiz.
You have to finish following quiz, to start this quiz:
0 of 25 questions answered correctly
Time has elapsed
You have reached 0 of 0 points, (0)
Question 1 of 25
T – BILL is treated as a ________ component which providing collateral to become members in F&O segment
Question 2 of 25
What happens to all open positions which are not closed on date of expiry?
Question 3 of 25
An investor has RST company shares in her portfolio. He wants to protect the downside in the stock as he feels a bearish
market is ahead.What should he do?
Question 4 of 25
________ involves combining options on the same underlying and of same type (call/ put) but with different strikes and
Question 5 of 25
Long Straddle is a strategy with __________
Question 6 of 25
Spot Price = Rs. 100. Call Option Strike Price = Rs. 98. Premium = Rs. 4. An investor buys the Option contract. On Expiry
of the Option the Spot price is Rs. 108. Net profit for the Buyer of the Option is ___.
Question 7 of 25
On 1st January, SBI is trading at Rs. 2310. An investor is bullish on the company because of the earnings of last quarter
and buys a SBI futures at Rs. 2310. He sells SBI futures at Rs. 2335. What is the Profit / Loss for the investor if 1 lot of SBI is
Question 8 of 25
Free float holding is ___________________
Question 9 of 25
Which of the following are derivatives?
Question 10 of 25
Buying ___________ options is equal to buying __________
Question 11 of 25
___________ is created when the underlying view on the market is positive but the trader would also like to reduce his
cost on position
Question 12 of 25
Diagonal spreads are more suitable for ___________
Question 13 of 25
______________________ has introduced STT on all derivative transactions entered into a stock exhange
Question 14 of 25
On 1st November, SBI is trading at Rs. 2300. An investor is bearish on the company because of the earnings of last
quarter and sells a SBI futures at Rs. 2325. He buys back SBI futures at Rs. 2300. What is the Profit / Loss for the investor if 1
lot of SBI is 250 shares?
Question 15 of 25
An investor owns one thousand shares of CDE company. Around budget time, he gets uncomfortable with the price
movements. One contract on CDE company is equivalent to 100 shares. Which of the following will give him the hedge he
Question 16 of 25
Calendar spread position is a combination of two positions in futures on the different underlying – long on one underlying
and short on a different underlying
Question 17 of 25
Systematic risk cannot be reduced or avoided by the use of index derivatives
Question 18 of 25
When a client has increased his existing positions or has created a new position in the security under F/O ban, the
client/trading members will be subject to a penalty of _________
Question 19 of 25
The following are the details of trading member ratanlal’s proprietary and client position: propritary : he buys 600
units@1020 and sells 1800 units @1025.client A : he buys 2000 units @ 1015.client B : he buys 1600 units @ 1016 and sells
800 units @ 1022.The settlement price of the day is 1023. What is MTM profit/loss for Ratanlal?
Question 20 of 25
Which of these CALL options are ITM?
Question 21 of 25
The open positions of a CM is derived by __________________
Question 22 of 25
The purchase of a share in one market and the simultaneous sale in a different market to benefit from price differentials is
known as ____________.
Question 23 of 25
The theoretical futures price is considered for ___________________in case a Futures Contract is not traded during the
Question 24 of 25
Adjustment for corporate actions for stock options shall be carried out __________.
Question 25 of 25
Trading member Shantilal took proprietary purchase in a March 2000 contract. He bought 1500 units @Rs.1200 and sold
1400 @ Rs. 1220. The end of day settlement price was Rs. 1221. What is the outstanding position on which initial margin will be