NISM Series I - Currency Derivatives Exam Practice Paper 16
| Q 1. The important market which opens around the afternoon of India time is/are ___. |
| Japan market |
| Europe / UK market |
| US market |
| Hongkong market |
| Q2.An export firm wants to hedge its export receivables and does not want unpredictable losses if the hedged position has to be fully canceled because of a delay in receipt of USD payments. What hedging instrument(s) is it likely to use? |
| Futures |
| Options |
| 50 % Futures, 50 % Options |
| 30 % Options, 70 % Futures |
| Q 3. The gold prices in India are influenced the most by _____. |
| USDINR rates |
| EURUSD rates |
| USD GOLD rates |
| USD GOLD and USDINR rates |
| Q4.Who acts as the central counterparty to GBPINR's future trades in India? |
| Clearing Corporation |
| Bank trading and clearing member |
| SEBI |
| Exchange |
| Q5.n case of Arbitration, if a person is not satisfied with the decision of the Arbitration Tribunal, what remedial measure can he take? |
| He can approach the concerned stock exchange for a re-hearing. |
| He can approach any Court of Law |
| He can approach SEBI for suitable action |
| Nothing as the Tribunal's decision is final. |
| Q6.The EURINR future contract is trading at 72.0050 / 72.0075. What will be the price if this contract falls by 2 ticks? |
| 72.0000 / 72.0025 |
| 72.3000 / 72.0055 |
| 72.0040 / 72.0065 |
| 71.7500 / 72.0025 |
| Q7.World over the financial regulators and Government are encouraging what kind of change in dealing with financial derivatives? |
| Move to exchange-traded derivatives |
| Decentralized clearing |
| Moving to OTC markets |
| Decentralized settlement |
| Q8.Mr. Dinesh, an exporter sells 200 lots of one-month USDINR futures at 73. At the expiry, the settlement price was announced at 72.70. How much profit/loss (in Rs) did he make on the transaction? |
| Loss of Rs 60,000 |
| Loss of Rs 45,000 |
| Profit of Rs. 45,000 |
| Profit of Rs. 60,000 |
| Q9.The process of actual pay-in or payout to settle the contract is called Settlement - True or False? |
| True |
| False |
| Q10.With respect to settlement in OTC forward market, the market participant can decide to settle it via gross settlement mechanism or net settlement mechanism - True or False? |
| True |
| False |