Q 1. Vega measures the change in delta with respect to the change in price of the underlying asset. State true or false.
Q 2. The broker is compulsorily required to get a Risk Disclosure Document signed by the client, at the time of client registration - State True or False?
Q 3. What should be the market-wide position limit for a stock for it to be eligible for the launch of futures and options contracts in the exchange-traded equity derivatives segment in India?
Q 4. The rate of change in option premium for a unit change in price of the underlying asset is known as Delta - State True or False ?
Q 5. The strategy of buying a put option on a stock you are owning is known as _______ .
Q 6. Position limits have been designed to _______ .
Q 7. Which of these is not included in the Indian equity derivatives market ?
Q 8. Identify the strategy which has a ‘limited potential gain with limited possible loss’.
Q 9. What does a beta of more than 1 mean ?
Q 10. What happens to a 'Day Order' if its not executed during the day?
Q 11. What is the role of speculators in the market ?
Q 12. As per Accounting Standards, the initial margin paid by an option seller is shown under ___________ in the balance sheet
Q 13. Stock price is ____________.
Q 14. Mr. Sharma purchased a call option on a stock for Rs. 10 per call with a strike price of Rs. 140. On the exercise date, the stock price is Rs. 168. Ignoring transaction costs, what will Mr. Sharma choose to do?
Q 15. What is the lot size for contracts on individual stock futures/options ?
Q 16. On final settlement, the buyer/holder of the option will recognise the favourable difference received from the seller/writer as ______ in the profit and loss account.
Q 17. Arbitrage is basically earning a risk-free profit by simultaneous buying and selling replicating assets in two or more different markets - State True or False?
Q 18. Under which Act / Regulations is the Suspicious Transaction reporting required?
Q 19. State True or False - Scarcity of underlying commodity will generally cause a rise in its futures price.
Q 20. An increase in interest rates will lead to _________.
Q 21. A clearing member is required to bring in an additional incremental deposits of _____ to clearing corporation for each additional TM he undertakes to clear and settle deals.
Q 22. Which tax is applicable on the transactions done on a recognised Indian stock exchange?
Q 23. When the initial margin is kept at lower levels, it becomes attractive for market participants to transact in the derivatives market - State whether True or False?
Q 24. Intrinsic Value is zero for out-of-the-money options but always positive for in-the-money options - State True or False?
Q 25. The strategy of _________ involves options with different strike prices but the same expiry dates.
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