‘chatbolgatecte rhe mya = atnt mine ad sige Walp rtusce ‘he canal ie oer ne fread rea rey alte ie ak By eting ta fran issued of te pre ale one can byl an ude sea ‘Thur Fond cont ae bse rhein managing tosioe bor aaanGE "The sate wrt oh ptm ried pay nial mar fronting into ton contac on npopint ecunt “Eat nde! Stock Option arg Recount ert pat open Abu of Cali ullah and blast pc wa. pyar ihe ha msi oth pois aD uit Ina marin cued 3 3. How much nia margin erred tobe olected rom bth these Ivestorscum of nl margin of and ¥ bythe rokor?. zeros ern tom ex Mergintom teSprott a Ra oe Which ote folowing losing aeons woul ha Selng Sop ABC Ares crac at 700 “amate poft Re 20h at ea Re 00 pasar 5208/9 ts) = 108) toh walmahe prof hen ep fe nh uy athe rece ie aan soldat 100, so wna bays ak at 1700 Ne me Re 18 esha Th pon wen te lea ht toby te endeyng Amacanopns, boas an eae hi ptn ayn blr atta conrae ‘Aca option aves he hold right o buy how mach ofthe underying tom the wr othe option? Oth be speciog uantiy” ‘nh pnd qunty a prt et othe option contacta 12 monn matty mana al ona oat tare oa ‘Aer vr nr on spec compan. Hower eh onthe mat wal ih fh flowing the moe appropri tag ak vantage om it olds te sar of hone pete comouin nn an buy ie ran By the wi rat nen ack es ‘The concept in which he darate trader tsa igher exposure forthe smal portion of margn amount brought by him alld a ot ta zona‘Wich ofthe folowing problem(s) tat exit nthe forward conracts are solved bythe Future contacts? fexniorpay | eExplenaton Fecrare a nr ovrtbeceatrOT)taracton wer te tame oe conrac sch a pice, uty, uy, me Fonecoeome es hom ear of soupy fat constant again an martyrs cone hin of art, Ar conn tan agente hgh erp can The cing capratin tsi wh xchange ‘Asher! postion na CALL option can be closed out by taking long postion na PUT option with same exorcise date and exercise pice - Stat Tre o Fase ? Explanation [Astor postion in CALL opto cab cloned uty ting ang poston na sume CALL option wih sae xr anand eerie, ‘Clas ornosonal ces, oporonty bse forte Sept pos ora, sce roarage charged by Trang WarberSuborokercv prcates 1c oton on sock 2 pr cal tips oR 35 on ec dt tock pe Re.28 ang ntacton ot Ma wi Fetto eer option Y CORRECT ANSWER Ravine beght Cal Optn asain a he pe al Trading members are required to possess a higher evel of Captl Adequacy (as pr b Clann Matrs pending ot throw de at thd oth tar ronchrng mambo horn Trig Mar wh ve red sth ds ova he “har he Capa! Adsoucy eqn ihe for Caring Mabe ran ard se aca pton he ber mata on at serSecures Transaction Tx (871i vied on, CORRECT ANSWER remy ores mun id iy tare The StockExchange x Fatt ane emu py he buyer anna ha ster ‘Opn (scald Pu, prem padIncase of. the gn or loss i rele on daly base dus tomark:to-markat mechani, {fay cyte tates anon Mo Markt TI i rn wich mri reson onthe bn ye change inte mart for nding ast, (orton contacts have to yp hoses postion Y CORRECT ANSWER caer spread becom The main objective of derivatives ito enble markt parcpants toA.Buye or holder ofthe option ete pat tothe contract who has Seng baratne spate [None ofthe above Acatoption ebayer bt not gto tba the unying at he srk -Aputpton vse bro hopin te a ul hele, ol te und Tho Trading members onthe exchanges derivatives segment are not required to be registered with SEBL- Stat w inca stiment ethod te parte toa tanacton sty esiing oping the gun ones etd conastn cathe. money ase)(nthe National Stock Exchange, forts nde faire, what woud be the opening day ofits Apel series? Seth at yon east in. Ae sew be cae ‘hi wi beh opening yf Ap ‘A outa ho tind 0 ik ts decent, adage dese manner, Inpropr een Spon CORRECT ANSWER Ancpen tutte ot mumbo conrcte attending jet be ee fr under aet/Aclaring member has deposited sible guid asets of R75 lace. The exchange has minimum gid fny frase sor Whats margin svat or tring a) 9 worth roqement of Re $0 athe. The member has not entered into Y CORRECT ANSWER Lgl Retort ned ig Asst mina Marg, ave cat has peed 73 oie ud xs, a 0 ete repent, the lace Re 2 bh le ed nl mag, tre pica ofa future contract increases the mar o market margin acount of the holder of the ahot potion in thet contracts ered forthe gain. State whether Teo Fal Y CORRECT ANSWERa nnguncy erat fr etn readers so mush ga an or sath mai Fr ts tne ohn Dth esha tn segments rin sem exchange. th can aac eeen shuld safe or sah xchanpegmet spt Change a gton prema os unt change in Je tnown 2 Rho Riana nt tole te cng opton ee gen one percentage onchange inte kien inet rate CORRECT ANSWER 180 ASK price mean Byer an Sar rie 10-104 Sa Anke itn cnt wih nae prope Iningia, tres andl options on individu stocks ae allowed onCORRECT ANSWER Higher the pricavolatity, higher would b the na margin requiem - State Tr or Faas? rent fora clearing member i higher than hat of non-claring member i. member whe only class is ade) Monay and secures deposits by cents with he rang members shouldbe kept by them ins separa clots account Tr o Fae ? ‘hey shoul mine eprt cant bank aeanut or speptin olan money.sn cjctvas of te GuariaeFnd 3 pnt tenn gh cont of cpl nd wet na crane In tae of cl optn an etrain ha pu eon ion postr Y CORRECT ANSWER‘T° Hea ea racing membor One of his lens has purchased 12 contracts of March sero Ingo futores and another ellen as has eo 10 contracts of March seria Index he eto traig meer pone up taint tat exon of hang mane 8 tm case of Cal options the markt pie es * mat pra alow ap, opin apes wer bye wince marin os pom pi and esr 8 Does the diference betwen aercig price ofthe option and spt pice afects option pramium ? Sat Yes or No. “Toe tie a tran babe Spt and ae Pie (Pe) [sree re emis one whan the Spt orien ct Sh opto rmiun uctaaapr he move Spt rc 8% nigh inal margin vel improves solvency & nancial capaity ofthe laring corporation Tre r False?‘255 an Amuriean pt option glves he buyer the ht but ot he obligation to slo the wir an underyng asst at specified pres on or elo the axpiy date - State whether Tue CORRECT ANSWER Atay cacti os hares coat tht aia when th conn exp snd ban he dyn “nivaryoeton an ne thn te dlry mont wen ser con he ce. oto tee ona rege yi conmey and maya ated cash Mr asetta put oponct tte R240 on POR tock or rom of ASE. Ta st SR On theexpy ya tek ned at Re. 6, Wate our nt pet ores? 000 (owe)cn tek movement iret rofterioes of Re 10 forthe nde bayer ntact mathe matty monthInia margins ealulte base on Y CORRECT ANSWER CORRECT ANSWER For potlio hedging by ntutions and muta funds, index based decvalives ae more suitable andare much more cost alective than dervatlve base on individu stocks CORRECT ANSWER A dotatt bya mot inthe derivatives segment wil be not be rested as defauit inthe cash segments of hat exchange - Stats Tre or False? ‘data ya mender Does acing a drains became exposing vt high marine 7 State Yes or No. deenaik the component of price rs hate unique te particular events of the company andlor industry ahi rik cul be reduced to a cra extant by veaiying CORRECT ANSWER ‘Te ik tate ptt nina Examples wytaat ak cde eee cute io potions nator The Clearing of adeson a stock exchange can be done by Rudy cearng momoers an ding mamtrs Orta menue een change nthe option rami ora change in CORRECT ANSWERSinan Outtae Money (TH Pat pon ‘Apupton a oT whan spt fara pre ehh han sie ps. Aver sold on ABC Sock Ft Contact 36th se 8, What he traders prot rons ih purchases the contact ack at 417 Re 1700 Los) eeion 300 Loe) Y CORRECT ANSWER aot and oughCORRECT ANSWER Pat ay Fant renteonracto ay indore hay te on 57 options contracts ae not symmetrical with respects rights & obligations of he parts involved Sato Tre o False ? “os bye ota pon ha igh bt not Ho inh ant Ali iat eat etn fpr pa 7% Time vale and intros value of cll option are avays either poste or ‘ony ntnemane pon av ein vara athe-mane and otneny ons have aint va. The tis ale a an pn cn neve be apa‘The mart pic ofa share Re 120 andthe 110 Call i quoted a Rs 24, what the nina vale of his ton Priam coat ft ain Iie Val nd Te Vt Inte shoe cnet ech makes e120 andthe tre pice Re 40S he eva i (120-10) The aes fo dochon othe mara move up down ab dlemib by SEB Done at nang‘tx Hence, bere te we gun by averting beyond sports rm 3 soc to 160 stock vs ry mtn. Going beyond alone Spon 5 option wth lower strike prea ands another cll option wth higher stk price both onthe ame undying share and same expiration dats, te srategy ie ‘Atel prnd contacted y buying ll ton wh alow ot prin an ng anther cl pon wih ahipher stra re Future racing ie considered more riaky than egy tracing due to, “dr can widen ietives y pv 8 smal marin sound 51030 of tl cot val, Tian skate ade an tte pi Y CORRECT ANSWERCORRECT ANSWER il ots wt happen ny whe ou sue te contact Stock pene 8% pnaod cal option strategy means that he weer doesnt current owns the undering- State Tus or False2° Facto) ntuoneing option pricing include which ofthe folowing ? ‘Winenornary cath dvidends are declared ut option ales wil decrease - State Tre or False? tober esr experi du te ut ha stock in anes to bye ed amount ar vend cl opons hey can get acount by uch a he end amount ets aaa eyelet toy nat pr Th ay etement price of eaty dere ae decided by. CORRECT ANSWER"The maxinum posse les fr the option buyers the premium pad, bu the profiscan be higher depending on the underying price movernent. Tse tu or mich ype of pions "ror ol yea optons Atuture contracts avery standardized contract that leaves very ite (xcept the price pen to nagotiton- State True or Flee? Y CORRECT ANSWER “ems otha tur contact a sandra wt qn ie pad Only pe aie ha ad sian tar ara satan. Shorr the tine to maturity ofthe call option higher wil be the time valu - Stat whether Tus or False? 1 ay roghou fl i Th ete at athe cry sent nthe pce cae, Len deenaieilemeiae eeneeeeelehalsiemecontract es terri carenty vane inte mat Price a spec a ht [Any person wo wishes to open a Trading Account must be given the following documents by his ading member SB gules onthe sect CORRECT ANSWER The ASK pre is avaye “Toe Aa any be ahr an Br,9 Beyer and alr i, 5 1010 Bi rn an 1 he A re We Mohan artnet acatat wth Me, Soham o by 500 age of Catton a price of Re 0 pt bg Dever of ade and payment of many wi ak place Amant Hom ‘The process by whieh autres contract is teminatd by a tansaction thts equal and oppose othe orginal raneacton I callad fesse CORRECT ANSWER ut of 100 questions 99 correct and 1 wrong,