Derivative Question - Set 8
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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
Assignment margin is charged at
Question 2 of 25
A security having value of beta as 2 will move 10 percent when the index moved 20 percent.
Question 3 of 25
A _________ is an agreement made between two parties to exchange cash flows in the future
according to a prearranged formula
Question 4 of 25
Horizontal spread is also known as Calendar spread
Question 5 of 25
What is IOC order?
Question 6 of 25
__________is the second derivative of the option price with respect to price of the underlying asset.
Question 7 of 25
VaR methodology seeks to measure the amount of value that a portfolio may stand to lose within a certain horizon time
period due to potential changes in
Question 8 of 25
A person who provides two way quotes for various stocks is known as _____ .
Question 9 of 25
You have taken a short position of one contract in June XYZ futures (contract multiplier 50) at a price of Rs. 3,400. When
you closed this position after a few days, you realized that you made a profit of Rs. 10,000. Which of the following closing
actions would have enabled you to generate this profit? (You may ignore brokerage costs)
Question 10 of 25
In futures market, at the end of each day, the adjustment of the margin account to reflect the investors gain or loss
depending on the futures closing price, is called as
Question 11 of 25
what is outstanding postion on which initial margin will be calculated if mr. madanlal buys 800 @ 1060 and sells 400
Question 12 of 25
What could be the maximum profit for a Buyer of Options Contract
Question 13 of 25
You have bought a Call option of ABC with Strike price of Rs 1000 in January Series. To close this position, you have to
buy a Rs 1000 Put option of ABC. True or False ?
Question 14 of 25
Find out the Intrinsic value of a CALL option of ABC Company. Spot is Rs 825. Strike is Rs 820
Question 15 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 16 of 25
Loss on derivative transactions can be set off against any other income during the year. In case the same cannot be set
off, it can be carried forward to subsequent assessment year and set off against any other income of the subsequent year.
Such losses can be carried forward for a period of ____assessment years.
Question 17 of 25
The value of Basis at expiry is _________________
Question 18 of 25
Higher the price volatility of the underlying stock of the put option, ______________.
Question 19 of 25
An option with a delta of 0.5 will increase in value approximately by how much, if the underlying share price increases by
Question 20 of 25
In futures trading profits are received or losses are paid ______________
Question 21 of 25
A trader wants to sell stock options. But he does not own the underlying stock. Can he do it in India ?
Question 22 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 23 of 25
Intrinsic value of the option is ________________________
Question 24 of 25
Which of the following statements is TRUE with respect to time value of options ?
Question 25 of 25
If you purchase a December call option at Rs 50 for a premium of Rs 10. Your breakeven is