Derivative Question - Set 5
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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
Which user is at the lowest level in the heirarchy of trading firm?
Question 2 of 25
The buyer of an option cannot lose more than the option premium paid.
Question 3 of 25
Expectedly falling market is called Contango Market.
Question 4 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 5 of 25
Arbitragers generally lock in their profits unlike traders who trade naked contracts
Question 6 of 25
The market wide limit of open position on futures and option contracts on a particular underlying stock is________
Question 7 of 25
The adjustment factor for a stock which split the shares in the ratio A:B is __________
Question 8 of 25
The operating range applicable in the stock option is _____
Question 9 of 25
__________________ has issued guidance notes on accounting of stock futures and options for traders.
Question 10 of 25
What could be the maximum loss for a Seller of Options Contract
Question 11 of 25
Horizontal spread is also known as Calendar spread
Question 12 of 25
The market wide limit of open position on futures and option contracts on a particular underlying stock should be
Question 13 of 25
Short strangle is a strategy with __________
Question 14 of 25
Daily settlement price of futures contracts on any trading day is ______________________
Question 15 of 25
Option seller will be legally bound to honour the contract by settling in cash if the option buyer does not exercise.
Question 16 of 25
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_______
Question 17 of 25
In the process of enforcement of the market wide limits, the exchange tests weather the market wide open interest for any
scrip exceeds _____ of the market wide position limit for that scrip
Question 18 of 25
Adjustment for corporate actions for stock options shall be carried out __________.
Question 19 of 25
In case of ban on the fresh position in the process of enforcement of the market wide limits, the normal trading in that
scrip is resumed after the open outstanding comes down to ______ or below of the market wide position limit
Question 20 of 25
A Call Option is said to be In-the-Money if
Question 21 of 25
Open interest is maximum in
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
Bullish Vertical Spreads can be implemented by the use of _________
Question 24 of 25
If a stock is excluded from the F&O list, it shall not be considered for re-inclusion for a period of ________
Question 25 of 25
What is the outstanding position on which initial margin will be levied if no proprietary trading is done and the details of
client trading are one client buys 500 units at the rate 1260 and the second client buys 900 units at the rate Rs 1255 and sells
1000 units at the rate Rs 1260