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Currency (1) 222 PDF
Currency (1) 222 PDF
Tripartite
Tripartite Tripartite Tripartite Bipartite
agreement
agreement agreement agreement agreement
Which of the following best between him
between him, between him, between him, between him
describes the guidelines with and his client
broker and his broker and his broker and his and his client
2 respect to nature of agreement clearly 1 Edit | Delete
client clearly client clearly client clearly clearly
that a sub-broker has to specifying
specifying rights specifying the specifying rights specifying the
execute with his clients? rights and
and obligations rights of broker but and obligations brokerage to be
obligations of
of each party not his obligations of each party charged
each party
An international trading
company has export revenue
in USD and it uses part of it to
USD USD USD USD
make import payments in GBP
depreciating USD appreciating appreciating depreciating depreciating
and balance is converted to
against GBP; against GBP; against GBP; against GBP; against GBP;
INR. The company is
16 Short USDINR Short GBPINR Short USDINR Short USDINR Short GBPINR 1 Edit | Delete
concerned about GBPUSD risk
and long and long USDINR and long and long and long
for its import payments. Which
GBPINR for for same maturity GBPINR for GBPINR for USDINR for
of the following best describes
same maturity same maturity same maturity same maturity
company's risk and the
currency futures strategy that it
may use to mitigate the risk?
Professional Clearing
Members are one of the
entities in the clearing and
22 TRUE FALSE TRUE * . 1 Edit | Delete
settlement system of the
Currency Derivatives
Segment. True or False?
If domestic currency
appreciates against the foreign
currency, the exposure would
23 result in loss for residents TRUE FALSE TRUE * . 1 Edit | Delete
purchasing foreign assets and
gain for non residents
purchasing domestic assets.
Trading
25 'Cli' order stands for _______. Client order Client order member's own Proprietary order Client ID 1 Edit | Delete
order
Broker should
Broker should have a
Broker should Broker should Broker should
Which of the following best ensure that his separate audit
promptly issue promptly issue make
describes the guidelines for sub-brokers team which
contract notes to contract notes to guidelines for
26 brokers with respect to issuing issue contract inspects the 1 Edit | Delete
his clients and his clients and his sub-brokers
of contract notes for execution notes every process of
clients of his clients of his sub- to issue
of orders? week to their issuing contract
sub-brokers brokers contract notes
clients notes at all his
sub-brokers
One tick move One tick move will One tick move One tick move One tick move
USD-INR currency futures are
27 will be 41.2525 be 41.2525 or will be 41.2550 will be 41.2565 will be 41.2585 1 Edit | Delete
currently traded at 41.2500
or 41.2475 41.2475 or 41.2450 or 41.2485 or 41.2450
Underlying be it Underlying be it
A derivatives contract cannot increase in increase in
30 equity, interest equity, interest Exchange 1 Edit | Delete
exist without an ________. volatility arbitrage
rate etc. rate etc.
A Forward contract is a
32 TRUE FALSE TRUE * . 1 Edit | Delete
standardized contract
The units of
The standardized items in a The date and the price quotation Location of
34 All of above All of above 1 Edit | Delete
futures contract are : ______. month of delivery and minimum settlement
price change
A futures contract is a
45 FALSE TRUE FALSE * . 1 Edit | Delete
Customized contract
Any corporate
Which of the following
not having
segments of market
55 NRIs Trusts NRIs FII exposure to 1 Edit | Delete
participants are not allowed to
foreign
trade in currency futures?
currency
If US Dollar-Rupee moved
from 43.00 to 43.30, the US appreciated, appreciated, depreciated, appreciated, depreciated,
62 1 Edit | Delete
Dollar has ___________ and depreciated depreciated appreciated strengthened weakened
the Rupee has __________
What are the basic accounting Initial margin - Initial margin - Profit and Loss -
65 Initial margin - Mark to market 1 Edit | Delete
heads to be maintained by any currency futures currency futures currency futures
currency - currency
market participant for and Mark to and Mark to
maintaining currency futures market - market - currency futures futures
accounts? currency futures futures
Investment Invoice
US Dollar reflects its Currency and Currency and
69 Both of above Both of above None of above 1 Edit | Delete
substantial international role as Transaction Intervention
Currency Currency
In a system of 10 currencies, if
one currency is selected as the
77 Nine Nine Ten Forty Five Hundred 1 Edit | Delete
vehicle currency and used for
all transactions, there would be
a total of ______ currency
pairs or exchange rates to be
dealt with.
Which of the following best 15% of open 15% of open 15% of open 15% of open 12.5% of open
describes the SEBI prescribed interest or JPY interest or JPY interest or JPY interest or JPY interest or JPY
78 open position limit for JPYINR 2000 million, 2000 million, 1000 million, 75 million, 2000 million, 1 Edit | Delete
contracts for a bank trading whichever is whichever is whichever is whichever is whichever is
member? higher higher higher higher higher
Exchange rates
Base currency is Base currency Quotation
Base currency is are quoted in
the first currency is the second currency is the
85 Which of the following is true? the first currency per unit of 1 Edit | Delete
in a currency currency in a first currency in
in a currency pair quotation
pair currency pair a currency pair
currency
client's
In the Currency Derivatives positions are
Segment Clients' positions are not taken into
86 arrived at by summing together net (buy - sell) gross (buy + sell) net (buy - sell) net or gross account in the 1 Edit | Delete
____positions of each Currency
individual client. Derivatives
Segment
An IT professional buys a
house for INR 500,000 for
which payment has to be
made after three months. As
he is expecting to receive USD
10,000 in three months, he
executes 10 USDINR futures
contracts to hedge currency
risk at a price of 50. When he
received the payment, he
90 Sold, Lower Sold, Lower Bought, Higher Sold, Higher Bought, Lower 1 Edit | Delete
converted USD into INR with
his bank at a price of 51 for
making the payment for the
house and also settles the
contract at a price of 49. Given
this situation, would he have
sold/ bought USDINR futures
and would the effective price
for house be lower than or
higher than USD 10,000?
Unpredicted movements in
91 exchange rates expose Currency Risks Currency Risks Dollar Risk Interest Rate risk Systematic Risk 1 Edit | Delete
investors to ______.
Outstanding
Over the Options Trade
OTC Derivatives stand for Over the Counter Transaction Commodity
95 Counter Credit 1 Edit | Delete
________. Derivatives Credit price risks
Derivatives Derivatives
Derivatives
removed from
removed from removed from removed from
If an order does not find a removed from the the trading
the trading the trading the trading
97 match in the trading system, it trading system at system when 1 Edit | Delete
system at the system after system on the
is _____ the end of the day the buyer /
end of the day seven days expiry day
seller wishes
Comm
gold Intere gold
odity None Edit |
excha st rate excha
2 The value of each currency against another currency was derived from ___________ excha of the 1 Delet
nge excha nge
nge above e
rate. nge rate.
rate
Edit |
3 The exchange of two currencies is called? FX FX SX CNX STT 1 Delet
e
Bretto
Bomb Bretto
Bretto Delhi n
ay n
n Comm Butter Edit |
Wood Wood
4 For exchange currency the countries adopted a system called Woods odity and 1 Delet
s s
Syste Excha egg e
Syste Syste
m nge syste
m m
m
Edit |
As part of the system, all currencies were pegged to ____ at a fixed rate and USD value USD,p USD,p EUR, Pegge GBP,
5 1 Delet
was ____ to gold. egged egged USD d,USD EUR
e
Edit |
6 ____ became the dominant currency of the world. USD USD GBP EUR JYP 1 Delet
e
Edit |
US US Euro
8 Which is the “vehicle” currency in foreign exchange transaction? EUR JYP 1 Delet
Dollar Dollar Dollar
e
Edit |
9 which currency second only to the US Dollar? EUR EUR JPY GBP CAD 1 Delet
e
Edit |
1
______is very liquid around the world, practically around the clock JYP USD EUR JYP CAD 1 Delet
0
e
1 Chica
The nickname _____ is derived from the telegrams used to update the GBPUSD. Cable Cable Kent 1Edit |
1 go
Delet
e
Edit |
1 FALS
Currency market, the concept of a 24-hour market has become a reality. TRUE TRUE * . 1 Delet
2 E
e
Edit |
1 FALS
London market opens during afternoon (as per India time). TRUE TRUE * . 1 Delet
3 E
e
UK
UK
and Edit |
1 and Europ
Australia currency market open after the____ US Japan India 1 Delet
4 US e
Marke e
Market
t
New
New US Europ Edit |
1 In the______, nearly two-thirds of the day‟s activity typically takes place in the morning York
York Marke e India 1 Delet
5 hours marke
market t Market e
t
Quotin Quotin
Term Pair None Edit |
1 g g
. The two currencies are called “base currency” (BC) and ________. Curre Curren of the 1 Delet
7 curren curren
ncy cy above e
cy cy
Edit |
1 FALS
The BC is the currency that is priced and its amount is fixed at one unit. TRUE TRUE * . 1 Delet
8 E
e
Edit |
2 FALS
In interbank market merchants are price takers and banks are price givers. TRUE TRUE * . 1 Delet
1 E
e
Buyer Buyer
Bid Bid Bid Edit |
2 The prices quoted for buying is called______ and the price quoted for selling is called Price , Price ,
Price , Price , Price 1 Delet
2 as_______ Saller Offer
offer or offer , e
Price Price
Ask or Ask Saller
Price Price Price
Edit |
2 Suppose a bank quotes USDINR spot price as 45.05/ 45.06 to a merchant. What is the 45.000 45.00
45.06 45.06 45.05 1 Delet
3 ask price? 5 06
e
Edit |
2 Sprea Marke Sprea
The difference between bid and offer price is called as? Profit Loss 1 Delet
4 d t Price d
e
None Edit |
2 Liquidit Liquidi Volum Tradin
Spread is an important parameter to note while assessing market ? of the 1 Delet
5 y ty e g
above e
None Edit |
2 In USDINR spot market, the spreads are wide at the time of opening and gradually start Narro Narro Positi
Upper of the 1 Delet
6 _____as the market discovers the price. wing wing ve
above e
None Edit |
2 Abbrev Narro Positi Abbrev
The offer price is generally quoted in ______form. of the 1 Delet
7 iated wing ve iated
above e
Edit |
2 FALS
Offer price is quoted in terms of last two decimal places. TRUE TRUE * . 1 Delet
8 E
e
High Edit |
2 Whenever the base currency buys more of the quotation currency, the base currency has Apprec Depre Appre Weak
Volum 1 Delet
9 ? iated ciated ciated ened
e e
High Edit |
3 Whenever the base currency buys more of the quotation currency, the quotation currency Depre Appre Streng Depre
Volum 1 Delet
0 has ? ciated ciated th ciated
e e
Edit |
3 FALS
n India, OTC market is open from 9:00 AM to 5:00 PM. TRUE TRUE * . 1 Delet
1 E
e
Edit |
3 The market is open for the last half hour is meant only for interbank dealings for banks to FALS
TRUE TRUE * . 1 Delet
2 square off excess positions. E
e
None Edit |
3 Bid Market
_____is the price available to the bank in the interbank market.. IBR IBR of 1 Delet
3 Price Price
these e
Edit |
3 FALS
IBR could differ from bank to bank TRUE TRUE * . 1 Delet
4 E
e
Edit |
3 Card Small Market Card
For small value transactions, banks publish_____ a standardized price. IBR 1 Delet
6 Rate Rate Rate Rate
e
Intern
Privat
Interna India ationa Merch Edit |
3 e
The opening levels of OTC market are primarily dependent on______ tional Marke l ant 1 Delet
7 Marke
Market t Marke Market e
t
t
Edit |
3 For large volume transactions, the bid/ask difference could be higher than that for small FALS
TRUE TRUE * . 1 Delet
9 value transactions. E
e
Edit |
4 RBI reference rate is the rate published daily by RBI for spot rate for various currency pairs FALS
TRUE TRUE * . 1 Delet
0 transaction at around 12:30PM. E
e
Cash
Deliver Delive Cash or
Cash Edit |
4 y of ry of P&L delive
The settlement in the OTC spot market happens by actual ________. Differe 1 Delet
1 curren curren Settle ry of
nce e
cy cy ment curre
ncy
None Edit |
4 Value Value Trade Tom
Settlement date is also called as _____ of the 1 Delet
2 Date Date Date Date
above e
Edit |
4 Trade
Settlement period of SOPT market are____ T+2 T+1 T+2 T+3 1 Delet
3 Date
e
forwar forwar
None Edit |
4 d” Future d” Deliver
Any settlement date after spot value date is called ______ of the 1 Delet
4 value Date value y Date
above e
dates dates
Edit |
4 “tom” “tom” Marke Closed T+2
If happens one day after trade date, the price is called as _____ 2 Delet
5 rate rate t Rate Rate rate
e
Edit |
4 If currency pairs prices are not directly available in the market than currency derived Cross Cross Card Marke
IBR 1 Delet
6 by____ Rate Rate Rate t Rate
e
The
The Feder
Federa al
l Open Open Finan
Edit |
4 Market Marke ce
In US, _________ is responsible for making key decisions about interest rates. FEMA Govt. 1 Delet
8 Commi t Minist
e
ttee Comm ry
(FOM ittee
C) (FOM
C)
Edit |
4 FALS
Derivative called underlying, can be interest rate or loan. FALSE TRUE . * 1 Delet
9 E
e
Edit |
5 FALS
Forward contract are customized contract. TRUE TRUE * . 1 Delet
0 E
e
Edit |
5 FALS
Forward contract are standardized contract? FALSE TRUE * . 1 Delet
1 E
e
Edit |
5
LEAPS are options with maturity up to _____years. 3 2 1 3 5 1 Delet
2
e
Intere Differe
Same Same None Edit |
5 st rate nt
Interest rate swaps related cash flows between the parties in the________. curren curren of the 1 Delet
5 differe curren
cy cy above e
nce cy
5
Currency Swaps involves exchanging with the cash flows in one direction being in _____ Differe Intere Differ Same None 1Edit |
6
nt st rate ent curren of the Delet
curren differe curren cy above e
cy nce cy
Edit |
5 Volatili Liquidi Trenc Volatil
Growth Drivers of Derivatives are increased _____in financial markets. Price 1 Delet
8 ty ty hancy ity
e
Edit |
5 Growth Drivers of Derivatives are improvement in communication facilities and decrease in FALS
TRUE TRUE * . 1 Delet
9 transaction costst E
e
Edit |
6 Hedge Hedge Specu Arbitr
_______use the derivatives to reduce risk. Trader 1 Delet
0 r r lator ager
e
Edit |
6 Specul Arbitra Trade Hedge Spec
.___________ use the derivatives to future movement of prices and assume the risk. 1 Delet
1 ator ger r r ulator
e
Edit |
6 FALS
Derivatives have helped in increasing the volume in underlying cash market TRUE TRUE * . 1 Delet
3 E
e
Edit |
6 FALS
Derivative help transfer of risk? TRUE TRUE * . 1 Delet
4 E
e
Edit |
6 The price of derivative converge with the price of the underlying at the expiration of the FALS
TRUE TRUE * . 1 Delet
5 derivative contract E
e
Edit |
6 FALS
Derivative due to their inherent nature are linked to the underlying cash market. TRUE TRUE . * 1 Delet
6 E
e
None Edit |
6 Specul Specu Forwar
_____ trades shift to more control environment of derivative market. OTC of the 1 Delet
7 ative lative d
above e
Edit |
6 The key difference being that exchange traded derivative r standardized while OTC FALS
TRUE TRUE */ . 1 Delet
8 contract r customized. E
e
None Edit |
6 Non Custo
Currency future are a ______ product. Linear Linear of the 1 Delet
9 linear mized
above e
None Edit |
7
A ___ is a minimum size of price change in currency market. Tick Pip Tick Nul of the 1 Delet
0
above e
Edit |
7 FALS
A tick is a maximum size of price change in currency market. FALSE TRUE * . 1 Delet
1 E
e
Edit |
7
The USD lot size are_____ 1000 500 1000 120 100 1 Delet
2
e
Edit |
7
The one tick value of USDINR is____ 2.5 3.5 1.5 1 2.5 1 Delet
3
e
Edit |
7 The last business day (excluding Saturdays) of the month is known as the Value date or FALS
TRUE TRUE * . 1 Delet
5 Final Settlement date of each futures contract. E
e
seven five
two two two Edit |
7 Expiry date are refers to the last day on which the contract will be traded (Last Trading worki busin
workin busine workin 1 Delet
6 Day), and is _______prior to the final settlement date. ng ess
g day ss day g day e
day day
Edit |
7 10000 20000 10000
In currency trading the lot size of JPYINR_____ ? 1000 10000 1 Delet
7 0 0 0
e
Marki
Markin None Edit |
7 At the end of each trading day the margin account is adjusted to show the investors profit/ ng to Initial
g to SPAN of the 1 Delet
9 loss depending upon the futures closing prices. This methodology is know as _______ marke Margin
market above e
t
T+1 T+1
Edit |
8 day Trade T+1 T+2 day
Marking to market margin charge on_____ 1 Delet
0 before day day day befor
e
the e the
start start
trading tradin
g
Banks
Banks
which
which r
r
license Edit |
8 licens Individ Comp
Who are authorized dealer in OTC market? d by Bank 1 Delet
1 ed by uals any
RBI ti e
RBI ti
deal in
deal in
FX
FX
Edit |
8 FALS
Retail speculators with NO exposure to FX can trade in OTC market. FALSE TRUE * . 1 Delet
2 E
e
Edit |
8 FALS
Future offer lower cost of trading as compared to OTC market. FALSE TRUE * . 1 Delet
3 E
e
Edit |
8 ________is to reduce the volatility in future cash flows by locking in the future currency Hedge Specu Arbitra Hedg
Trader 1 Delet
4 rates. rs lator ger ers
e
Edit |
8 Specul Arbitr Specul Hedg
______ does not have a real exposure to foreign currency risk. Trader 1 Delet
5 ator ager ator ers
e
Edit |
8 Specul Specu Arbitra Hedg
______ play a vital role in the futures markets. Trader 1 Delet
6 ator lator ger ers
e
Edit |
8 Hedge Specu Hedge Arbitr
Futures are designed primarily to assist ______ Trader 1 Delet
7 rs lator rs ager
e
Edit |
8 A high networth individual in India is keen to invest in _____with a view of rising gold
Gold Gold Euro USD GBP 1 Delet
8 prices against USD.
e
Intere
Liquid Monet
st Edit |
9 All of ity in ary All of
Spread movement is based on factors Rate 1 Delet
0 above Banki Policy above
Differe e
ng Decisi
ntials
Syste ons
m (Repo,
Revers
e
Repo
and
CRR )
differe differe
same excha None Edit |
9 nt nt
Intra-currency pair spread consists same underlying and _______ maturi nge of the 1 Delet
1 maturit maturi
ties date above e
ies ties
differe
same same excha none Edit |
9 nt
Inter-currency pair spread consists different underlying and _______ maturit maturi nge of 1 Delet
2 maturi
ies ties date these e
ties
Edit |
9 Twelv
Currently currency future contracts are permitted on ______currency pairs Four Three Four Five 1 Delet
3 e
e
Refer Edit |
9 Rupee Rupee
In India all currency contract would be quoted in_________. USD GBP ence 1 Delet
4 terms terms
Rate e
Previo Edit |
9 Curren Previo Curre
New contract will be introduced following the Expiry of ________month contract. Last us 1 Delet
5 t us nt
current e
Edit |
9
In currency market final settlement will be cash settled on _______basis. T+2 T+2 T+1 T+5 T+3 1 Delet
6
e
Edit |
9 Excha Excha Trade
Daily mark to market settlement price will be announced by the ________ SEBI RBI 1 Delet
7 nge nge rs
e
Previo
Last us
Theore Theore None Edit |
9 half an day
if there is no trading in a day, the Daily settlement Price are tical tical of the 1 Delet
8 hour closin
price price above e
price g
price
Interba Interba
Merch Edit |
9 nk nk
The last working day will be the same as that for _________ in Mumbai. ant SEBI RBI 1 Delet
9 Settle Settle
Bank e
ments ments
There are
______entiti Edit |
2 es in the Five Three Four Two Five 1 Delet
trading e
system.
Clearing
members
Clearing Clearing Edit |
are Exchang
3 Corporat SEBI RBI Corpora 1 Delet
members of e
ion tion e
the_______
_____.
A
professional
clearing
member is a Edit |
4 clearing TRUE TRUE FALSE * . 1 Delet
member e
who is not a
trading
member.
__________
___become both of both of None of Edit |
custodian
5 professional the banks the the 1 Delet
s
clearing above above above e
members.
Which order
Edit |
are consider Day Day Stop Market Limit
7 1 Delet
as time Order Order Loss order Order
e
condition ?
In Condition
of
______parti
al match is
possible for
the order, Edit |
Stop
8 and the IOC IOC Day Limit 1 Delet
Loss
unmatched e
portion of
the order is
cancelled
immediately
.
Market
orders are
orders for
which no Edit |
9 price is TRUE TRUE FALSE * . 1 Delet
specified at e
the time the
order is
entered.
The orders
are entered
on the Edit |
Custodia
10 trading PRO CLI PRO NIST 1 Delet
l
member's e
own
account in
code as
_______
The trading
member
enters the Edit |
Custodia
11 orders on CLI CLI PRO NIST 1 Delet
l
behalf of a e
client as
______
There are
no daily
price bands Edit |
12 applicable TRUE TRUE FALSE * . 1 Delet
for currency e
futures
contracts.
In currency
derivative
operating
ranges will
Edit |
be kept at
13 5% 4% 3% 5% 8% 1 Delet
______ for
e
contracts
with tenure
greater than
6 months.
Rules,
regulation
and bye-
laws of the
Edit |
Exchange Exchang Exchang
14 SEBI RBI FIDAI 1 Delet
govern the e e
e
functions
and
processes
by the ____
The
financial
settlement
Clearing Clearing Edit |
guarantee in Exchang
15 Corporat RBI SEBI Corpora 1 Delet
currency e
ion tion e
derivative
taken by
_______
_______
clear and
settle their Trading Trading Professi
own trades cum Clearing Trading cum onal Edit |
16 as well as Clearing Member Member Clearing Clearing 1 Delet
trades of Member (CM) (TM) Member Member e
other (TCM) (TCM) (PCM)
trading
members.
A TM's open
position is
arrived at as
the
______of Edit |
Summati Summati Outstan
18 his Net Grossed 1 Delet
on on ding
proprietary e
open
position and
clients' open
positions.
The
maximum
allowable
Edit |
open Exchang Exchang Clearing
19 SEBI RBI 1 Delet
position limit e e Member
e
across all
members by
_____
__________
___is
Clearing Edit |
accountable Clearing Exchang Clearing
20 Corporati Dealer 1 Delet
for positions member e member
on e
of all trading
members.
Exchange
also calls for
Edit |
information
21 TRUE FALSE TRUE * . 1 Delet
directly from
e
the client
itself.
The gross
open
position
Edit |
limits across Exchang Clearing
22 SEBI SEBI RBI 1 Delet
contracts e Member
e
have been
prescribed
by _______
The gross
open
position
limits of
client in Edit |
23 USDINR 6% 5% 7% 6% 8% 1 Delet
across e
contracts
have been
prescribed
_______
The gross
open
position
limits of non
bank trading
Edit |
member in
24 15% 14% 10% 15% 5% 1 Delet
USDINR
e
across
contracts
have been
prescribed
_______
The gross
open
position
limits of non
bank trading
Edit |
member in
25 1000 mn 1000 mn 100 mn 200 mn 500 mn 1 Delet
JPYINR
e
across
contracts
have been
prescribed
_______
All currency
futures
Cash None of Edit |
contracts
27 Cash Delivery Cash and the 1 Delet
are
delivery above e
_______sett
led
The
settlement
amount for Edit |
Summati
28 a CM is Netted Grossed open Netted 1 Delet
on
______acro e
ss all their
TMs/clients
Remarks :
The prices
in currency
pair is
f the
quoted in
underlying
terms of
currency
value of
pairs for
one unit of
deriving
base
prices of are
currency. Edit |
EURUSD: 63.6897/ 1.4456/1 63.6897/ 62.2546/ 1.4365/
29 While 1 Delet
1.4351 / 63.7218 .9876 63.7218 63.0576 1.9987
calculating e
1.4355;
cross rates,
USDINR:
it is
44.38 /
important
44.39. what
to keep in
is the price
mind which
of EURINR.
is the base
currency
and that
the price is
being
calculated
for one unit
of base
currency in
terms of
quotation
currency
(also called
as term
currency).
(EUR =
1.4351 ×
44.38 =
63.6897)
(INR =
1.4355 ×
44.39 =
63.7218)
If the
underlying
currency
pairs are
GBPUSD
price as
1.6290 / 72.2950 Edit |
1.4598/1 72.2950 / 70.3465/ 1.4598/
30 1.6293 and / 1 Delet
.9956 72.3246 70.9876 1.3425
USD/ INR 72.3246 e
as 44.38/
44.39, the
price for
GBP / INR
works out to
be______
If the Remarks :
underlying You need
currency to sell INR
pairs are to buy
USDJPY USD; and
Edit |
price as further sell 53.23 / 44.8760/ 53.23 / 55.6754/ 44.23 /
31 1. Delet
83.35/ 83.37 the USD to 53.25 44.1432 53.25 56.0025 44.56
e
and USD/ buy JPY in
INR as term of
44.38/ 100JPY.
44.39, the Here base
price for currency
JPYINR are same
works out to so need to
be _______ calculate
real value.
(buying
price 1JPY
is 44.39/
83.35 =
0.5325
INR) (
selling
price of 1
JPY is
44.38/
83.37=
0.5323) So
100 JPY
would be
53.23 /
53.25 INR
What is the
future price,
if Spot Formula
exchange are : F/ S =
rate of (1+RINR) /
Edit |
USDINR is (1+RUSD) ,
32 51.9417 50.8756 51.9417 49.9878 50.8750 1 Delet
50 and Risk F/ 50 =
e
free interest (1+.07) /
rate for one (1+.03), =
year in USA F= 51.9417
is 3% and in
India is 7%.
F=S× F=S/
F=S× F = (1 +
(1 + (1 +
Forward (1 + RQC F = S × RQC ×
RQC × RQC × Edit |
price equal × Period) (1 + Period)
33 Period) / Period) / 1 Delet
to / (1 + RQC × / (1 +
(1 + (1 + e
_________ RBC × Period) RBC ×
RBC × RBC ×
Period) Period)
Period) Period)
If 6 month First we
interest rate convert
Edit |
in India is interest
34 52 50 54 52 57`` 1 Delet
10% per rate per
e
annum and annum to
in USA are half yearly,
2% per bcoz future
annum . price
The current calculate 6
USDINR month.
spot rate is Interest
50. What is rate are
the likely 6 India
month 10/2=5 and
USDINR in USA
futures 2/2=1. Now
price? formula are
:F=S+
(RINR-
RUSD)*S
50+ (5-1)
×50 = 50+2
= 52
If the spot
rate for
USDINR is
quoted @
Rs. 44.80
and one
month
forward is
quoted
45.10 while
at the same Sells in Sells in Sells in
Buy in Buy in Edit |
time one futures futures forward
35 futures forward 1 Delet
month @ 45. @ 45. @
@ 45.25 @ 45.10 e
currency 25 25 45.10
futures is
trading @
Rs. 45.25.
An active
arbitrager
realizes that
there is an
arbitrage
opportunity_
________
One year
interest rate
is 4% in US
and 1% in
UK. If
current
f=s+(Rus-
GBPUSD
Ruk)*s
spot rate is Edit |
f=1.65+(4%
39 1.65, which 1.6995 1.6995 1.6005 1.7325 1.6500 1 Delet
-1%)*1.65
of the e
1.65+0.049
following
5 1.6995
could be
closest to
one year
future rate
of
GBPUSD?
If one year
interest rate
is 2% in US
6 month
and 10% in
interest
India. If
rate are us
current Edit |
= 2/2 = 1%
40 USDINR 45.76 42.24 45.76 47.52 40.48 1 Delet
ind
spot rate is e
10/2=5% f=
44, which of
44+(5-
the following
1)*44 45.75
could be
closest to
the six
month
future rate
of USDINR?
An exporter
sells 10 lots
of one
month
EURINR
futures at
sell = 63
63. At the
buy = 63.70
expiry, the
loss = 0.70 Edit |
settlement loss of loss of loss of profit profit of
41 loss = 1 Delet
price was 7000 7000 700 700 7000
0.70*10*10 e
announced
00 loss =
as 63.70.
7000
How much
profit/loss
(in Rupees)
did he make
on the
transaction?
A trader in
India
expects
international
gold prices
to
appreciate
from USD
1500 per
ounce to
USD 1800
in next six 18 15 Edit |
15 lots, 15 lots, 18 lots,
43 months. To lots,13.6 lots,13 1 Delet
13.6% 13.6% 12%
benefit from % % e
the view, he
buys 30
grams of
gold at
Rupees
22,000 per
gram and
also sold 6
month
USDINR
futures at
44
45
46
A TRADING
MEMBER
(TM) HAS
TWO9
CLIENTS A
AND B AND
HE ALSO
DOES
PROPRIET
ARY
TRADING
IN
CURRENC
Y
FUTURES.
ON DAY 1
TM BUYS 8
TM = +8-
LOTS OF
2=6 A= +8-
USD INR
2=6 B= +2-
ONE 18000,6 18000,6 18000,6 Edit |
8=6 LOT ZERO,60 8000,60
47 MONTH 000,600 000,600 000,700 1 Delet
SIZE 000,6000 00,6000
FUTURES 0 0 0 e
(1000)
AND ALSO
18000,600
SELLS 2
0,6000
LOT OF
THE SAME
CONTRACT
ON THE
SAME DA;Y
IN HIS
PROPRIET
ARY BOOK
ON THE
SAME DAY
CLIENT A
BUY 8LOT
OF USD
INR ONE
MONTH
FUTURES
AND ALSO
SELLES 2
LOT OF
THE SAME
CONTRACT
EHILE
CLIENT B
SELLS 8
LOTS AND
BUYS 2
LOT WHAT
WOULD BE
THE OPEN
POSITION
(IN USD)
OF THE
TRADING
MEMBER,
CLIENT A
AND
CLIENT B
RESPECTI
VELY AT
THE END
OF THE
DAY 1 ?
A client
buys a USD
call option
CALL
at strike of
BREAK
45.5 and
EVEN =
pays a Edit |
STRIKE
48 premium of 45.8 45.8 45.2 45.3 46.2 1 Delet
PRICE +
INR 0.3. e
PREMIUM
What would
= 45.5+.03
be the
=45.8
breakeven
point for the
transaction?
CLIENT 1 = 2000
- short for
5000+0=50 currenc
00 CLIENT y
2=- futures Edit |
11000 4000 20000 11000
50 0+4000=40 and 1 Delet
USD USD USD USD
00 CLIENT 2000 e
3=- long for
0+2000=20 currenc
00 TOTAL y
= 11000 options
CLIENT 1 =
-
2000
6000+3000
short for
=3000
currency
CLIENT 2 =
futures No Edit |
- 9000 12000 9000
51 and open 1 Delet
6000+3000 USD USD USD
2000 position e
=3000
long for
CLIENT 3 =
currency
-0+3000
options
TOTAL =
90000
WE CAN
BUY
Edit |
CONTRAC
52 0.27 0.27 0.25 0.23 0.29 1 Delet
T WITH
e
ASK
PRICE
BUY PUT
@ 0.55
SELL CALL
@ 0.71
CALL = None of Edit |
Profit of Profit of Loss of Profit of
53 CMP - SP the 1 Delet
INR 0.91 INR 0.15 INR 0.96 INR 0.91
= IN IS above e
OTM CAL
PROFIT =
0.71 PUT =
SP - CMP
= 45.5 -
44.75 =.75
NET
PROFIT
0.75-0.55 =
0.2 TOTAL
PROFIT =
0.71+0.20
= 0.91
Future price
is equal to
the interest
Edit |
rate
54 TRUE FALSE TRUE * . 1 Delet
difference
e
between
two
currencies.
The
maximum
loss limit,
allows a
member to Edit |
55 sustain on a 75% 50% 65% 75% 90% 1 Delet
real-time e
basis, is
____ of the
total
deposit.
In currency
derivative
every time
60%, 50%, 60%, 60%, 50%, Edit |
loss amount
56 75%, or 60%, or 75%, or 80%, or 65%, or 1 Delet
goes
90% 75% 90% 90% 85% e
beyond the
levels of
_______
when the
loss crosses
the 75% of
Edit |
the total Suspend Suspend Block Cancel
57 Block 1 Delet
deposit limit, ed ed Order Orders
e
the member
is ______by
the system.
The
financial
soundness
of the Edit |
58 members is TRUE FALSE TRUE * . 1 Delet
the key to e
risk
managemen
t.
Upfront
initial
margin is Clearing Edit |
Clearing Trading Clearing Exchang
59 charged for Corpora 1 Delet
Member member Member e
all the open tion e
positions of
a _______
In currency
derivative
Clearing Edit |
trading Clearing Trading Exchang Clearing
60 Corporat 1 Delet
member Member member e Member
ion e
limit set by
______
Separate
settlement
guarantee
funds for Clearing Edit |
Exchang Trading Exchang Clearing
61 this Corporati 1 Delet
e member e Member
segment on e
have been
created by
______.
which
margin use
by
None of Edit |
exchange Initial
62 SPAN VaR SPAN the 1 Delet
for compute Margin
above e
on-line risk
managemen
t system .
which
None of Edit |
margin use Initial
63 SPAN VaR SPAN the 1 Delet
by Margin
above e
exchange
for compute
on-line risk
managemen
t system .
SPAN
compute on-
line
margins,
Clearing Edit |
based on Exchang Clearing
64 SEBI SEBI Corporat 1 Delet
the e Member
ion e
parameters
defined by
¬¬¬¬_____
___
initial
margin
charge for Edit |
65 the purpose TRUE FALSE TRUE * . 1 Delet
of allowable e
exposure
limits.
Value at
Risk (VaR)
based on a
worst case Edit |
One Three Five
66 loss of a One day One day 1 Delet
week day day
portfolio as e
to cover a
99% over a
___ horizon.
The
minimum
margin
Edit |
required for
67 1% 1% 5% 7% 3% 1 Delet
currency
e
pair
USDINR___
___
The
minimum
Edit |
margin
68 4.5% 1.2% 3.2% 4.5% 4.0% 1 Delet
required on
e
first day for
currency
pair
JPYINR___
___
The
minimum
margin
Edit |
required for
69 2% 2% 3% 1% 4% 1 Delet
currency
e
pair
GBPINR___
___
The
minimum
margin
required on Edit |
70 first day for 2.8% 1.2% 2.8% 3.2% 4.5% 1 Delet
currency e
pair
EURINR___
___
SPAN
methodolog
y is adopted
None of Edit |
the risk Individua Trading Clearing Individua
71 the 1 Delet
involved in l client Member Member l client
above e
the portfolio
of each
________.
The client-
wise margin
is grossed
across None of Edit |
Trading Clearing Individual Trading
72 various the 1 Delet
Member Member client Member
clients at above e
the
________le
vel.
The
proprietary
positions of Edit |
Trading Clearing Trading All of
73 the Trading Client 1 Delet
Member Member Member above
/ Clearing e
Member are
treated as
that of a
______
The
Exchange
updates real
time margin
computation Edit |
74 the scenario 5 2 4 8 5 1. Delet
contract e
values at
least ___
times in the
day.
A currency
futures
position at
one maturity
which is
Edit |
hedged by Calenda Arbitrag Hedgegin Calenda Specula
75 1 Delet
an offsetting r spread e g r spread tion
e
position at a
different
maturity is
treated
as______.
The
calendar
spread
margin for Edit |
76 USDINR 400 400 500 200 100 1 Delet
one month e
contract
are_______
_
The
calendar
spread
margin for Edit |
77 GBPINR 1800 1800 1700 1400 1500 1 Delet
two month e
contract
are_______
_
The
calendar
spread
margin for Edit |
79 EURINR 700 500 400 700 100 1 Delet
one month e
contract
are_______
_
The
calendar
spread
margin for Edit |
80 EURINR 1000 400 1000 5000 2200 1 Delet
two month e
contract
are_______
_
The
extreme
Edit |
loss margin
81 0.3% 0.3% .5% .05% .010% 1 Delet
charge on
e
EURINR are
_______
The
extreme
Edit |
loss margin
82 0.5% .05% .022% 0.5% .04% 1 Delet
charge on
e
GBPINR are
_______
The initial
margin and
None of Edit |
the extreme Clearing Trading Individual Clearing
83 the 1 Delet
loss margin Member Member client Member
above e
are
deducted
from the
liquid assets
of the
______
The clearing
member’s
liquid
networth
after
adjusting for
Edit |
the initial Rs. 50 Rs.100 Rs. 50 Rs. 5 Rs. 75
84 1 Delet
margin lacs lacs lacs crore lacs
e
requirement
s must be at
least
______at all
points in
time.
The mark-
to-market
gains and
losses are
settled in
cash before Edit |
85 the start of TRUE FALSE TRUE * . 1 Delet
trading on e
T+1 day,
before start
of the next
day’s
trading.
The client
margins are
compulsorily
collected
Clearing Edit |
and Exchang Exchang Clearing
86 SEBI Corporat 1 Delet
reported to e e Member
ion e
the
______by
the
members.
The
Edit |
Clearing six One Three six one
87 1 Delet
Corporation months month month months year
e
of the
Exchange,
take
periodic risk
evaluation
report on an
ongoing
basis and at
least once
in every
_______
A copy of
the study is
submitted to
_____along
with Clearing Edit |
Exchang Clearing
88 suggestions SEBI SEBI Corporat 1 Delet
e Member
on changes ion e
to the risk
containment
measures
(imp)
_________p
ermitted
introduction Edit |
SEBI & SEBI & Exchang
89 of USDINR SEBI RBI 1 Delet
RBI RBI e
options on e
stock
exchange.
the right to
sell the Edit |
put Call put
91 asset is Future Forward 1 Delet
option. option option.
called e
_______
The
difference None of Edit |
time to time to Settleme
92 between the Trading the 1 Delet
maturity maturity nt
date of above e
entering into
the contract
and the
expiration
date is
called_____
_
the party
which sells
the right and
receives
Edit |
premium for seller/ seller/ arbitrag
93 buyer hedger 1 Delet
assuming writer writer er
e
such
obligation is
called
option___
options, the
buyer has Edit |
94 only rights TRUE FALSE TRUE * . 1 Delet
and no e
obligation.
Option
Edit |
buyer faces
95 TRUE FALSE TRUE * . 1 Delet
only the risk
e
of premium.
________all
owed banks
to offer
None of Edit |
foreign
96 RBI SEBI FEDAI RBI the 1 Delet
currency-
above e
INR
European
options
The
exchanges
started Novemb Novemb Novembe March Edit |
January
97 trading in er 10, er 10, r 30, 30, 1 Delet
10, 2008
currency 2010. 2010. 2011. 2009 e
options from
______
Index Edit |
98 (European) TRUE FALSE TRUE * . 1 Delet
options can e
be
exercised
by the buyer
of the option
only on the
expiration
date
In India, all
the currency
options in None of Edit |
Europea America Europea
99 OTC market Indian the 1 Delet
n n n
are of above e
_______typ
e.
Stocks
(American)
options can
be
exercised
Edit |
100 by the buyer TRUE FALSE TRUE * . 1
Del
any time on
or before
the
expiration
date.
______It measures
7 sensitivity of option value to Rho Delta Rho Theta Vega 1 Edit | Delete
the risk free interest rate.
_____methodology use to
compute and is mainly None of the
8 Black and Scholes Binomial pricing Black and Scholes Standard Devition 1 Edit | Delete
used to price European above
options.
_____methodology use to
compute and is mainly Black and Standard None of the
9 Binomial pricing Binomial pricing 1 Edit | Delete
used to price American Scholes Deviation above
options.
In ________strategy the
13 losses are limited and long butterfly Short Straddle long butterfly Short Strangle Vanilla 1 Edit | Delete
known in advance.
income or loss on
derivative transactions
which are carried out in a
24 “recognized stock TRUE FALSE TRUE * . 1 Edit | Delete
exchange” is not taxed as
speculative income or loss.
(imp)
_______Account
The Committee
Convertibility had The Committee on
27 SEBI Govt. of India RBI on Fuller 1 Edit | Delete
recommended that Fuller Capital
Capital
currency futures
A derivative security
28 derived can be a debt TRUE FALSE TRUE * . 1 Edit | Delete
instrument.
A derivative security
derived can not be a
29 TRUE FALSE TRUE * . 1 Edit | Delete
interest rate or loan
instrument
To coordinate the
regulatory roles of _____in The Committee
30 regard to trading of RBI SEBI Govt. of India RBI on Fuller 1 Edit | Delete
Currency Futures on the Capital
Exchanges
A Clearing Corporation in
39 the currency futures SEBI RBI FADI SEBI Exchange 1 Edit | Delete
segment can function only
after obtaining
_____approval.
Currency Derivative
membership subject to the
44 SEBI RBI Government SEBI Exchange 1 Edit | Delete
regulatory norms and
provisions of _____
A broker should
_______inform his client Promptly or Promptly or None of the
49 T+1day T+2 day 1 Edit | Delete
about the execution or non- emmiditaly emmiditaly above
execution of an order.
Exchange rates
Base currency is Quotation
Base currency is Base currency is are quoted in
Which of the following is the second currency is the
62 the first currency the first currency per unit of 1 Edit | Delete
true? currency in a first currency in a
in a currency pair in a currency pair quotation
currency pair currency pair
currency
65 An international trading USD depreciating USD appreciating USD appreciating USD depreciating USD 1 Edit | Delete
company has export against GBP; against GBP; against GBP; against GBP; depreciating
revenue in USD and it uses Short USDINR Short GBPINR Short USDINR Short GBPINR against GBP;
part of it to make import and long GBPINR and long USDINR and long GBPINR and long USDINR Short USDINR
payments in GBP and for same maturity for same maturity for same maturity for same maturity and long
balance is converted to GBPINR for
INR. The company is same maturity
concerned about GBPUSD
risk for its import payments.
Which of the following best
describes company's risk
and the currency futures
strategy that it may use to
mitigate the risk?
Initial margin -
What are the basic Initial margin -
currency
accounting heads to be currency futures
Mark to market - Profit and Loss - Initial margin - futures and
74 maintained by any market and Mark to 1 Edit | Delete
currency futures currency futures currency futures Mark to market
participant for maintaining market - currency
- currency
currency futures accounts? futures
futures
Broker should
have a
Broker should Broker should Broker should
Which of the following best Broker should separate audit
promptly issue promptly issue ensure that his
describes the guidelines for make guidelines team which
contract notes to contract notes to sub-brokers issue
76 brokers with respect to for his sub- inspects the 1 Edit | Delete
his clients and his clients and contract notes
issuing of contract notes for brokers to issue process of
clients of his sub- clients of his sub- every week to
execution of orders? contract notes issuing contract
brokers brokers their clients
notes at all his
sub-brokers
Tripartite
Tripartite Tripartite
Bipartite Bipartite agreement
Which of the following best agreement agreement
agreement agreement between him,
describes the guidelines between him, between him,
between him and between him and broker and his
with respect to nature of broker and his broker and his
78 his client clearly his client clearly client clearly 1 Edit | Delete
agreement that a sub- client clearly client clearly
specifying the specifying rights specifying the
broker has to execute with specifying rights specifying rights
brokerage to be and obligations of rights of broker
his clients? and obligations of and obligations of
charged each party but not his
each party each party
obligations
Possible, if he
can give to the
In OTC currency derivative
bank a copy of
market in India, is it
underlying trade None of the
82 possible for a corporate to Not possible Not possible Possible 1 Edit | Delete
transaction above
write an option and receive
against which
a net premium?
option has been
written
If the underlying currency
pairs for deriving prices of
are EURUSD: 1.4351 /
83 63.6897/63.7218 62.2546/63.0576 63.6897/63.7218 1.4456/1.9876 1.4365/1.9987 1 Edit | Delete
1.4355; USDINR: 44.38 /
44.39. what is the price of
EURINR.
The documented
interest None of Edit | Dele
1 of history gold Commodity gold 1
rate These te
countries was
agreed to value
their currencies
against value of
currency of other
country using
________as the
benchmark for
valuation?
The exchange of
Edit | Dele
3 two currencies is FX SX CNX STT FX 1
te
called?
For exchange
Bretton
currency the Bretton Bombay Bretton Delhi
Butter and Edit | Dele
4 countries adopted Woods Woods Woods Commodity 1
egg te
a system called System System System Exchange
system
___________.
As part of the
system, all
currencies were
USD,pegg Pegged,U USD,pegg Edit | Dele
5 pegged to ____ at EUR,USD GBP,EUR 1
ed SD ed te
a fixed rate and
USD value was
____ to gold.
Which is the
“vehicle” currency
Edit | Dele
9 in foreign US Dollar EUR Euro Dollar US Dollar JYP 1
te
exchange
transaction?
which currency
Edit | Dele
10 second only to the EUR JPY GBP CAD EUR 1
te
US Dollar?
______is very
liquid around the Edit | Dele
11 JYP USD EUR CAD JYP 1
world, practically te
around the clock
The nickname
_____ is derived
None of Edit | Dele
12 from the telegrams Cable Kent Chicago Cable 1
the above te
used to update the
GBPUSD.
Currency market,
the concept of a
Edit | Dele
13 24-hour market TRUE FALSE TRUE * . 1
te
has become a
reality.
Currency market,
the concept of a
Edit | Dele
14 24-hour market TRUE FALSE TRUE * . 1
te
has become a
reality.
Australia currency
UK and US UK and US Edit | Dele
15 market open after Japan India Europe 1
Market Market te
the____
In the______,
nearly two-thirds
of the day‟s New York New York Europe Edit | Dele
16 US Market India 1
activity typically market market Market te
takes place in the
morning hours.
The BC is the
currency that is
Edit | Dele
19 priced and its TRUE FALSE TRUE * . 1
te
amount is fixed at
one unit.
Interbank market
Merchant None of Edit | Dele
20 is the market Bank Dealers Bank 1
Banker the above te
between_____
In interbank
market merchants
Edit | Dele
22 are price takers TRUE FALSE TRUE * . 1
te
and banks are
price givers.
Suppose a bank
quotes USDINR
spot price as Edit | Dele
24 45.06 45.05 45.0005 45.0006 45.06 1
45.05/ 45.06 to a te
merchant. What is
the ask price?
Spread is an
important
None of Edit | Dele
25 parameter to note Liquidity Volume Liquidity Trading 1
the above te
while assessing
market ?
In USDINR spot
None of Edit | Dele
26 market, the Narrowing Positive Upper Narrowing 1
the above te
spreads are wide
at the time of
opening and
gradually start
_____as the
market discovers
the price.
Offer price is
quoted in terms of Edit | Dele
28 TRUE FALSE TRUE * . 1
last two decimal te
places.
Whenever the
base currency
buys more of the Appreciate Depreciate High Appreciate Edit | Dele
29 Weakened 1
quotation d d Volume d te
currency, the base
currency has ?
In India, OTC
market is open Edit | Dele
30 TRUE FALSE TRUE * . 1
from 9:00 AM to te
5:00 PM.
The market is
open for the last
half hour is meant
Edit | Dele
31 only for interbank TRUE FALSE TRUE * . 1
te
dealings for banks
to square off
excess positions.
Derivative called
underlying, can be Edit | Dele
34 TRUE FALSE TRUE * . 1
interest rate or te
loan.
Forward contract
Edit | Dele
36 are standardized FALSE TRUE FALSE * . 1
te
contract?
LEAPS are
options with Edit | Dele
37 3 1 3 2 5 1
maturity up to te
_____years.
Swaps contracts
Standardiz None of Edit | Dele
39 are _______ Private Private Exchange 1
ed the above te
contracts.
Interest rate
swaps related
Interest
cash flows Same Different Same None of Edit | Dele
40 rate 1
between the currency currency currency the above te
difference
parties in
the________.
Currency Swaps
involves
Interest
exchanging with Different Different Same None of Edit | Dele
41 rate 1
the cash flows in currency currency currency these te
difference
one direction
being in _____
A payer Swaptions
is an option to Floating, Fixed , Floating, Fixed, Floating , Edit | Dele
42 1
receive _____and fixed floating fixed cash cash te
pay _____
Growth Drivers of
Derivatives are Trenchanc Edit | Dele
43 Volatility Liquidity Price Volatility 1
increased _____in y te
financial markets.
. Growth Drivers of
Derivatives are
Edit | Dele
44 improvement in TRUE FALSE TRUE * . 1
te
communication
facilities and
decrease in
transaction costs
Derivatives help in
Future Current Close Future Forward Edit | Dele
45 discovery of 1
Prices Price Price Prices Price te
_______
Derivatives have
helped in
increasing the Edit | Dele
46 TRUE FALSE TRUE * . 1
volume in te
underlying cash
market
The price of
derivative
converge with the
price of the Edit | Dele
48 TRUE FALSE TRUE * . 1
underlying at the te
expiration of the
derivative
contract.
Derivative due to
their inherent
Edit | Dele
49 nature are linked TRUE FALSE TRUE * . 1
te
to the underlying
cash market.
Currency future
Customize None of Edit | Dele
52 are a ______ Linear Non linear Linear 1
d the above te
product.
In currency trading
Edit | Dele
58 the lot size of 100000 1000 5000 50000 100000 1
te
JPYINR_____ ?
The amount
deposited for the
first time in the
margin account Initial SPAN MTM Cash Initial Edit | Dele
59 1
while entering the Margin Margin Margin Margin Margin te
currency future
contract is termed
as ____
Banks Banks
Who are which r which r
Edit | Dele
62 authorized dealer licensed by Individuals Bank licensed by Company 1
te
in OTC market? RBI ti deal RBI ti deal
in FX in FX
Retail speculators
with NO exposure Edit | Dele
63 FALSE TRUE FALSE * . 1
to FX can trade in te
OTC market.
________is to
reduce the
volatility in future
Edit | Dele
65 cash flows by Hedgers Trader Speculator Hedgers Arbitrager 1
te
locking in the
future currency
rates
The financial
settlement
Clearing Clearing
guarantee in Edit | Dele
67 Corporatio SEBI Corporatio RBI Exchange 1
currency te
n n
derivative taken by
_______
A TM's open
position is arrived
at as the ______of
Summatio Outstandi Edit | Dele
70 his proprietary Net Grossed Summation 1
n ng te
open position and
clients' open
positions
The maximum
allowable open
position limit Clearing Edit | Dele
71 Exchange SEBI RBI Exchange 1
across all Member te
members by
_____
_____________is
Clearing
accountable for Clearing Clearing Edit | Dele
72 Dealer Corporatio Exchange 1
positions of all member member te
n
trading members.
Exchange also
calls for
Edit | Dele
73 information TRUE FALSE TRUE * . 1.
te
directly from the
client itself.
All currency
futures contracts Cash and None of Edit | Dele
77 Cash Delivery Cash 1
are delivery these te
_______settled
The settlement
amount for a CM
Edit | Dele
78 is ______across Netted Grossed Summation open Netted 1
te
all their
TMs/clients
The maximum
loss limit, allows a
member to sustain Edit | Dele
79 75% 50% 65% 75% 90% 1
on a real-time te
basis, is ____ of
the total deposit.
In currency
derivative every 50%,
60%, 75%, 60%, 75%, 50%, 60%, 60%, 80%, Edit | Dele
80 time loss amount 65%, or 1
or 90% or 90% or 75% or 90% te
goes beyond the 85%
levels of _______
The financial
soundness of the
Edit | Dele
82 members is the TRUE FALSE TRUE * . 1
te
key to risk
management.
Clearing
Upfront initial Clearing Trading Clearing Edit | Dele
83 Exchange Corporatio 1
margin is charged Member member Member te
n
for all the open
positions of a
_______
In currency
Clearing
derivative trading Clearing Trading Clearing Edit | Dele
84 Exchange Corporatio 1
member limit set Member member Member te
n
by ______
Separate
settlement
Clearing
guarantee funds Trading Clearing Edit | Dele
85 Exchange Exchange Corporatio 1
for this segment member Member te
n
have been created
by ______.
initial margin
charge for the
Edit | Dele
87 purpose of TRUE FALSE TRUE * . 1
te
allowable
exposure limits.
Value at Risk
(VaR) based on a
worst case loss of Edit | Dele
88 One day One week One day Three day Five day 1
a portfolio as to te
cover a 99% over
a ___ horizon.
SPAN
methodology is
adopted the risk Individual Trading Clearing Individual None of 1 Edit | Dele
89
involved in the client Member Member client the above 3 te
portfolio of each
________.
An IT professional
buys a house for
He receive USD in future so he should
INR 500,000 for
sell USD future contract and settlement of Sold, Bought, Sold, Sold, Bought, Edit | Dele
90 which payment 1
payment Rs.49 are lower to current USD Lower Higher Lower Higher Lower te
has to be made
Rs.50.
after three
months. As he is
expecting to
receive USD
10,000 in three
months, he
executes 10
USDINR futures
contracts to hedge
currency risk at a
price of 50. When
he received the
payment, he
converted USD
into INR with his
bank at a price of
51 for making the
payment for the
house and also
settles the
contract at a price
of 49. Given this
situation, would he
have sold/ bought
USDINR futures
and would the
effective price for
house be lower
than or higher
than USD 10,000
A trader in India
expects
international gold
prices to
appreciate from
USD 1500 per
ounce to USD
LOT = 1500/3=500, 500*30=15000,
1800 in next six
15000/1000=15 Lot Real Return : GOLD :
months. To benefit
720000-660000=60000, 15 lots, 15 lots, 15 lots, 18 lots, 18 lots, Edit | Dele
91 from the view, he 1
60000*100/66000 =9 ` FUT USD : 13.6% 13.6% 13% 12% 13.6% te
buys 30 grams of
690000-660000 =30000,
gold at Rupees
30000*100/690000=4.6, (9+4.6=13.6%)
22,000 per gram
and also sold 6
month USDINR
futures at 46. After
six months, gold
prices appreciated
to USD 1800 per
ounce and the
trader sold gold at
Rupees 24,000
per gram and
unwinds currency
futures contract at
44. Assuming 1
ounce is equal to
3 grams, how
many lots of
currency futures
would he have
used to hedge the
currency risk and
how much was the
real return for the
investor?
A person has
invested USD
100,000 in US
equities with a
view of
appreciation of US
stock market. In
next one year, his
investments in US
equities
appreciated in
value to
USD120,000. The
investor decided USD Return = 120000-100000=20000,
to sell off his =20% and INR Return : (100000*44.5) – Edit | Dele
92 20%, 24% 20%, 16% 20%, 24% 20%, 20% 20%, 18% 1
portfolio and (120000*46) = 1070000 = te
repatriate the 1070000*100/4450000 = 24%
capital and profits
to India. At the
time of investing
abroad the
exchange rate
was 44.5 and at
the time of
converting USD
back into INR, he
received an
exchange rate of
46. How much is
the return on
investment in USD
and in INR
respectively?
A person has
invested INR
100,000 in an
Indian corporate
bond for a year
giving a return of
16% in one year.
The person plans
to use the
proceeds from the
maturity of
corporate bond to
fund his son's
education on US. Bond Value: 100000+16% = 116000, and
Edit | Dele
93 At the time of USD value : 50+4% = 52, Net USD 2231 2231 2320 2417 2083 1
te
investing in the Require : 116000/52 = 2231
corporate bond,
USDINR spot rate
was 50 and one
year premium was
4%. The person
decides to hedge
currency risk using
USDINR one year
futures. At the end
of one year, how
many USD can
this person remit
to his son?
A trading member
(TM) has two
clients "A" and "B"
and he also does
T.M. = buy lot 12 – 2 sales lot = 10, A
proprietary trading
client buy lot 12 – 2 sales lot = 10, B
in currency
client buy lot 12 – 2 sales lot 2 = 10, total 30,000; 30,000; 10,000; zero,
futures. On day 1, 10,000; Edit | Dele
94 lot 10+10+10 = 30 lot size = 1000 open 10,000; 10,000; 10,000; 10,000; 1
TM buys 12 lots of zero; zero te
position 10,000 10,000 10,000 10,000
USDINR one
30*1000,10*1000,10*1000=30000,10000,
month futures and
10000
also sells 2 lots of
the same contract
on the same day
in his proprietary
book. On the
same day, client
"A" buys 12 lots of
USDINR one
month futures and
also sells 2 lots of
the same contract
while client "B"
buys 12 lots and
sells 2 lots. What
would be the open
position (in USD)
of the trading
member, client "A"
and client "B"
respectively at the
end of day 1?
A trading member
(TM) has two
clients "A" and "B"
and he also does
proprietary trading
in currency
futures. On day 1,
TM buys 12 lots of
USDINR one
month futures and
also sells 2 lots of
the same contract
on the same day
T.M. BUY lot 8 – 2 Sales lot = 6, A client
in his proprietary 30,000; 30,000; 10,000; zero,
buy lot 8 – 2sales lot=6, B client buy lot 2 10,000; Edit | Dele
95 book. On the 10,000; 10,000; 10,000; 10,000; 1
– 8 sales lot =6, total settlement lot 6+6+6 zero; zero te
same day, client 10,000 10,000 10,000 10,000
= 18 , 18000,6000,6000
"A" buys 12 lots of
USDINR one
month futures and
also sells 2 lots of
the same contract
while client "B"
buys 12 lots and
sells 2 lots. What
would be the open
position (in USD)
of the trading
member, client "A"
and client "B"
respectively at the
end of day 1?
A client buys a
USD call option at
strike of 45.5 and
pays a premium of
Call break event = strike price + premium, Edit | Dele
96 INR 0.3. What 45.8 46.1 45.6 45.8 45.2 1
45.5+.03= 45.80 te
would be the
breakeven point
for the
transaction?
A trading member
has two clients in
currency futures
segment and one
client in currency
option segment. At
the end of a
trading day, one of
the clients in
currency futures 2000 short
segment has 5000 for
USD short position client 1 sales 5000 buy 0=5000, client 2 currency
and the other sales 0 buy 4000 client 3 sale 0 buy 11000 11000 futures and 20000 Edit | Dele
97 4000 USD 1
client has 4000 2000= 2000 total unit 5000+3000+3000 = USD USD 2000 long USD te
USD long position. 11000 for
Additionally, the currency
currency option options
client has 2000
USD long position.
What is the gross
open position for
the trading
member for the
purpose of
monitoring open
position?
Assume that on
1st December
2010, USD-INR
spot was at 45,
premium for buy put @ 0.55, sale call @ 0.71, call =
January 2011 cmp – sp = it is otm ,call profit = 0.71 Put
10 Profit of Profit of Profit of Loss of Loss of
maturity put option = sp – cmp , 45.5-44.25 = 0.75, Net profit 1 Edit | Dele
0 INR 0.91 INR 0.15 INR 0.91 INR 0.2 INR 0.96
at strike of 45.5 is = 0.75-0.55 = 0.20 Total profit =
INR 0.54/0.55 and 0.71+0.20 = 0.91
premium for
January 2011
maturity call option
at strike of 45 is
INR 0.71/0.72. A
client executes a
trade wherein he
buys put at a
strike of 45.5 and
sells a call at a
strike of 45. On
expiry the RBI
reference rate is
44.75. How much
net profit/loss did
the client make
per USD?