NISM Series I - Currency Derivatives Exam Practice Paper 10
| Q1.If the one-year interest rate is 2% in the UK and 8 % in India. If the current GBPINR spot rate is 70, which of the following could be closest to the six-month future rate of GBPINR? |
| 73.1 |
| 72.8 |
| 72.06 |
| 71.8 |
| Q2.Mr. Shastri invested Rs 200000 in US Shares when the USDINR rate was 60 After three years his investments were down by 6%. He sold these shares and repatriated the money back to India at the then-existing rate of USDINR at 63. What would be his real yearly returns in INR? |
| 1.30% Loss |
| 0.43 % Loss |
| 1.30 % Profit |
| 0.43 % Profit |
| Q3.Suresh executes the following currency futures trade – Sells GBPINR and Buys EURINR for an equivalent amount. What view has he executed? |
| INR appreciation against GBP |
| INR depreciation against GBP |
| EUR appreciation against GBP |
| EUR depreciation against GBP |
| Q 4. The one-year interest rate in USD is 2 % and is 9 % in India. Assume the spot rate is 60 and the one-year future price is 62.50. If the interest rate gap between the US and India widens and other things remain the same, what will be the one-year future price? |
| Same as 62.50 |
| Higher than 62.50 |
| Lower than 62.50 |
| Q 5. The Profit or Loss for an Option Writer is unlimited - True or False? |
| True |
| False |
| Q6.______ recommended introduction of exchange-traded currency futures in India. |
| NSE Currency Futures Committee |
| RBI-SEBI Standing Technical Committee |
| Ministry of Finance |
| Currency Futures Standing Committee |
| Q7.A currency futures position at one maturity which is hedged by an offsetting position at a different maturity is called a Delta Hedging - True or False? |
| True |
| False |
| Q8.As per the Foreign Exchange Management Act, an 'AD Category 1' bank can have a maximum net NPA of __ % to become a Trading and Clearing Member of currency futures segment at a recognized stock exchange. |
| 4% |
| 4.80% |
| 3% |
| 2.50% |
| Q9.As per the Foreign Exchange Management Act, an 'AD Category 1' bank can have minimum capital adequacy (CAR) ratio __ % to become a Trading and Clearing Member of currency futures segment at a recognized stock exchange. |
| 8% |
| 10% |
| 16% |
| 20% |
| Q10.If 5 units of gold were valued at USD 5000 and 5 units of gold were valued at GBP 3250, then as per the gold standard system what is the value of GBP in terms of USD |
| 0.65 |
| 1.23 |
| 1.54 |
| 2.6 |