NISM SERIES I - CURRENCY DERIVATIVES EXAM
NISM CURRENCY DERIVATIVES EXAM
Q (1): A trader sells 10 lots of EURINR 1 month futures when price was 82.60/82.80 and squares off 5 lots after a week when price was 83.75/83.85 . Calculate the profit or loss on the squared up transaction.
a -7500
b-5450
c -3750
d -6250
Q (2): A trader does the following currency futures trade - sells EURINR and Buy JPYINR for an equivalent amount. What view has he executed ?
a - INR weakening against EUR
b -EUR weakening against JPY
c -EUR strengthening against JPY
d -INR strengthening against EUR
Q (3):
Which term best describes EUR currency?
a -Currency floating
b -Free floating
c -Managed float
d -Pegged to gold
Q (4): If more than one contract in a series are outstanding at the time of expiry/ squaring off, the contract price of the contract so squared off is determined using ___ method for calculating profit/loss on squaring-up.
a -First-in, First-out (FIFO)
b -Last-in, First-out (LIFO)
c -As per the decision of the Clearing corporation
d- The Loss making contracts are first squared off
Q (5): If one year interest rate is 2.5% in UK and 9% in India. If current GBPINR spot rate is 78, what would be the one year future rate of GBPINR ?
a -Higher than 78
b -Lower than 78
c -78
d -None of the above
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