Derivative Question - Set 7
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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
Forwards are bilateral over the counter (OTC) transactions where the terms of the contract, such as price, quantity, quality,
time and place are negotiated between two parties to the contract
Question 2 of 25
For equity derivatives, carrying cost is the interest paid to finance the purchase less (minus) dividend earned
Question 3 of 25
You sold a Put option on a share. The strike price of the put was Rs.245 and you received a premium of Rs.49 from the
option buyer. Theoretically, what can be the maximum loss on this position?
Question 4 of 25
An investor buys a 4 lots of ABC futures at Rs. 545 and sells it at Rs. 495 . If Lot size is 1000 shares, what is the Profit/
Loss in the transaction?
Question 5 of 25
The open position of a TM is arrived at by _________________
Question 6 of 25
Time value of an option is
Question 7 of 25
The payoff for a person who buys a futures contract is similar to the payoff for a person who goes ___________ on the
Question 8 of 25
Operational risks include losses due to ____________.
Question 9 of 25
An open interest is the total number of contracts traded in a month for an underlying asset
Question 10 of 25
A dealer sold one January Nifty futures contract at 8800 on 15th January. Lot Size – 75. On 25th January, the index closed
at 8850. How much profit/loss did he make ?
Question 11 of 25
Which of the following statement is true about market index?
Question 12 of 25
A stock is currently selling at Rs. 165. The put option at Rs. 163 strike price costs Rs.3. What is the time value of the
Question 13 of 25
An in-the-money option is __________________.
Question 14 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
Question 15 of 25
How is Beta calculated for a portfolio of stocks ?
Question 16 of 25
Which of these CALL options are OTM?
Question 17 of 25
Securities Transaction Tax (STT) in case of Sale of an option in securities is payable by_______
Question 18 of 25
Which user is at the lowest level in the heirarchy of trading firm?
Question 19 of 25
____________ are created by using options having same expiry but different strike prices
Question 20 of 25
Put option seller will have the obligation to sell if the put option buyer exercises his right.
Question 21 of 25
The time value of an option is
Question 22 of 25
Price bands applicable for Nifty Futures Contracts is __________
Question 23 of 25
Which of the following statement is TRUE about time value of options?
Question 24 of 25
In which option is the strike price better than the market price (i.e., price difference is advantageous to the option holder)
and therefore it is profitable to exercise the option?
Question 25 of 25
The maximum penalty for any member or client who increased the existing positions or created a new position in the
security under f/o ban is __________