Nism Series Viii: Anonymous Tqkfazvsvl Full Description

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Nism Series Viii

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NISM Equity Equity Derivatives 500 in one n
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NISM Equity Equity Derivatives 500 in one nism FREE NISM Mock FREE NISM Mock ModelQNi
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NISM Series VIII: Equity Derivativ

Certification Examination
1. An index option is a __________________.
Debt instrument
Derivative product [Correct answer NOT selected]
Cash market product
Money market instrument
. !he purchase o" a share in one market and the simultaneous sale in a di"
bene"it "rom price di""erentials is known as ____________.
Mort#a#e
Arbitra#e [Correct answer NOT selected]
$ed#in#
%peculation
&. 'inancial derivatives provide the "acility "or __________.

%peculation
$ed#in#
Arbitra#in#
All o" the above [Correct answer NOT selected]
(. )perational risks include losses due to ____________.

Related titles*nade+uate disaster plannin# [Correct answer NOT selected]

!oo much o" mana#ement control

*ncome tax re#ulations
,overnment policies

-. *mpact cost is low when the li+uidity in the system is poor.
!rue
NISM Equity Equity
'alse Derivativesanswer
[Correct 500 in one
NOT nism FREE NISM Mock
selected] FREE NISM Mock ModelQNi
. /ou sold one 0/ %tock 'utures contract at 2s. 34 and the lot si5e is
your pro"it 9:; or loss 9<;6 i" you purchase the contract back at 2s. -=
1677
1-677 [Correct answer NOT selected]
<1-677
<1677
3. /ou have taken a short position o" one contract in >une 0/ "utures 9co
-7; at a price o" 2s. &6(77. 8hen you closed this position a"ter a "ew days6
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you made a pro"it o" 2s. 176777. 8hich o" the "ollowin# closin# actions w
you to #enerate this pro"it= 9/ou may i#nore brokera#e costs.;
%ellin# 1 >une 0/ "utures contract at &77
?uyin# 1 >une 0/ "utures contract at &77
?uyin# 1 >une 0/ "utures contract at &77 [Correct answer NOT sele
%ellin# 1 >une 0/ "utures contract at &77
4. 8hich o" the "ollowin# is closest to the "orward price o" a share6 i" Cash
'orward Contract Maturity   months "rom date6 Market *nterest rate  1
33.-
3- [Correct answer NOT selected]
4(7
(7.4
. *" you have sold a 0/ "utures contract 9contract multiplier -7; at &17
back at &&776 what is your #ainloss=
A loss o" 2s. 176777 [Correct answer NOT selected]
A #ain o" 2s. 176777
A loss o" 2s. -6777
You're Reading a Preview
A #ain o" 2s. -6777
Upload your documents to download.
17. A calendar spread contract in index "utures attracts ___________.
OR
%ame mar#in as sum o" two independent le#s o" "utures contract
Eower mar#in than sum o" two Become a Scribd member
independent for"utures
le#s o" full access. Your [Corr
contract
first 30 days are free.
selected]
$i#her mar#in than sum o" two independent le#s o" "utures contract
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Fo mar#in need to be paid "or calendarContinue for Free
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spread positions
11. Client A has purchased 17 contracts o" December series and sold 3 con
series o" the F%G Fi"ty "utures. $ow many lots will #et cate#ori5ed as re#
open positions=
17 
3
& [Correct answer NOT selected]
Derivatives MCQs13 NISM Free Mock… Test - NISM Seri… Test - NISM Seri…
1. *n an e+uity scheme6 "und can hed#e its e+uity exposure by sellin# stoc
!rue [Correct answer NOT selected]
'alse
1&. Mar#ins in H'uturesH tradin# are to be paid by _______.

)nly the buyer
)nly the seller
?oth the buyer and the seller [Correct answer NOT selected]
!he clearin# corporation
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1(. 8hen the near le# o" the calendar spread transaction on index "utures e
le# becomes a re#ular open position.
'alse
1-. %ellin# short a stock means ___________.

%eller does not own the stock he is supposed to deliver [Correct answer N
%eller has to deliver the stock within a short time
%eller owns the stock he is supposed to deliver
%eller has more than a yearHs time to deliver the stock which he sold
1. !he buyer o" an option cannot lose more than the option premium paid
!rue only "or Guropean options
!rue only "or American options
!rue "or all options [Correct answer NOT selected]
'alse "or all options
13. Cost o" carry model states that ______________.

@rice o" 'utures  %pot : Cost o" Carry [Correct answer NOT selected]
@rice o" 'utures  %pot < Cost o"Upload
Carryyour documents to download.
@rice o" 'utures  %pot @rice
OR
@rice o" 'utures  Cost o" Carry
Become a Scribd member for full access. Your
14. 8hat role do speculators play in the "utures market=
!hey take delivery o" the commodities at expiration
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"utures for Free
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!hey produce the commodities traded at exchan#es

!hey add to the li+uidity in the "utures markets [Correct answer NOT sel
!hey trans"er their risk to the hed#ers
1. /ou sold a @ut option on a share. !he strike price o" the put was 2s.( 
a premium o" 2s.( "rom the option buyer. !heoretically6 what can be the m
this position=
Derivatives MCQs1NISM
[Correct
Free Mock… answer NOT selected]
Test - NISM Seri… Test - NISM Seri…
7
7
(
7. Current @rice o" 0/ %tock is 2s. 4. 2s. 7 strike call is +uoted at
*ntrinsic Ialue=
1
 [Correct answer NOT selected]
(-
7
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1. A european call option #ives the buyer the ri#ht but not the obli#ation t
seller an underlyin# at the prevailin# market price Jon or be"oreJ the expir
!rue
'alse [Correct answer NOT selected]
. A put option #ives the buyer a ri#ht to sell how much o" the underlyin#
option=
Any +uantity
)nly the speci"ied +uantity 9lot si5e o" the option contract; [Correct answ
!he speci"ied +uantity or less than the speci"ied +uantity
!he speci"ied +uantity or more than the speci"ied +uantity
&. An in<the<money option is _____________.

An option with a ne#ative intrinsic value
An option which cannot be pro"itably exercised by the holder immediately
An option with a positive intrinsic value [Correct answer NOT selected]
An option with 5ero time value

(. An option with a delta o" 7.- will increase in value approximately by h
underlyin# share price increasesUpload
by 2syour
= documents to download.
2s 1 [Correct answer NOT selected]
OR
2s 
2s ( Become a Scribd member for full access. Your
!here would be no chan#e
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
-. Gxchan#e traded options are _______________.

%tandardised options [Correct answer NOT selected]
Always in<the<money options
Customised options
Always out<o"<the money options 
. $i#her the price volatility o" the underlyin# stock o" the put option6 __
NISM Equity Equity Derivatives 500 in one nism
FREE NISM Mock FREE NISM Mock ModelQNi
Derivatives MCQs$i#her would
NISM Free Mock… be the premium[Correct answer
Test - NISM Seri… NOT selected]
Test - NISM Seri…
Eower would be the premium
p
Fil 95ero; would be the premium
Iolatility does not e""ect put value
3. *n which option is the strike price better than the market price 9i.e.6 pric
advanta#eous to the option holder; and there"ore it is pro"itable to exercise
)ut<o" the money option
*n<the <money option [Correct answer NOT selected]
At<the<money option
$i#her<the<money option
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4. Mr. 0 purchases 177 put option on stock % at 2s. &7 per call with strik
*" on exercise date6 stock price is 2s. &-76 i#norin# transaction cost6 Mr. 0
_____________.
!o exercise the option
Fot to exercise the option [Correct answer NOT selected]
May or may not exercise the option dependin# on whether he is in his hom
that time
May or may not exercise the option dependin# on whether he like the com
. !hree Call series o" 0/ stock < >anuary6 'ebruary and March are +uo
have the lowest )ption @remium 9same strikes;=
>anuary [Correct answer NOT selected]
'ebruary
March
All will be e+ual
&7. 8hich is the ratio o" chan#e in option premium "or the unit chan#e in i
Ie#a
2ho [Correct answer NOT selected]
!heta Upload your documents to download.
,amma
OR
Become
&1. *" you sell a put option with a Scribd
strike o" 2s. member
(- atfora full access. Your
premium o" 2s.(76 ho
maximum #ain that you may have on expiry o" this position=
4-
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(7 [Correct answer NOT selected] Continue for Free
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7
7-
&. *" an investor buys a call option with lower strike price and sells anoth 
hi#her strike price6 both on the same underlyin# share and same expiration
is called ___________.
Derivatives MCQs?ullish spread
NISM Free Mock…[Correct answer NOT Test - selected]
NISM Seri… Test - NISM Seri…
?earish spread
p
?utter"ly spread
Calendar spread
&&. )n the derivative exchan#es6 all the orders entered on the !radin# %yst
exclusive o" brokera#e.
'alse
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NISM Series VIII: Equity Derivativ

&. 'inancial derivatives provide the "acility "or __________.

(. )perational risks include losses due to ____________.

!oo much o" mana#ement control

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1&. Mar#ins in H'uturesH tradin# are to be paid by _______.

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1-. %ellin# short a stock means ___________.

13. Cost o" carry model states that ______________.

!hey produce the commodities traded at exchan#es

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&. An in<the<money option is _____________.

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-. Gxchan#e traded options are _______________.

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