NISM Series VIII - Equity Derivatives Paper - 03
| Q 1. A Clearing Member is responsible for the exchange for his transactions & also for the position of his trading members under him - True or False? |
| False |
| True |
| Q2.If the tick size of the scrip is 5 paise and the spot price of that scrip is Rs. 70, what will be the next upward tick? |
| 69.95 |
| 70.005 |
| 70.05 |
| 70.5 |
| Q3.In an In the money PUT option_ |
| strike price would be lower than the market price |
| exercise price would be equal to the market price |
| strike price would be higher than the market price |
| strike price would be zero |
| Q4.A risky trader/speculator believes that the future price of ABC Company will fall and being a smart trader he will ____. |
| buy ABC futures now and sell them later when it falls |
| wait till the price of ABC futures and cash market price become the same |
| sell ABC futures now and buy them later when the price falls |
| will do nothing as he had suffered a loss in his previous trade |
| Q5.____ means the maximum exposures in terms of a number of options and futures contacts that an investor can hold on one side of the market. |
| Outstanding Limit |
| Market Limit |
| Position Limit |
| Upper Limit |
| Q6.When would a trader make a profit on a short position of September futures? |
| when he buys an October future at a lower price |
| when he sells another September future at a lower price |
| he squares of this short position by buying the September future at a lower price |
| when he sells October futures at a lower price. |
| Q7.A clearing member is required to bring in an additional incremental deposit of __ to the clearing corporation for each additional TM he undertakes to clear and settle deals. |
| Rs.5 lakhs |
| Rs.10 lakhs |
| Rs.15 lakhs |
| Rs.20 lakhs |
| Q8.Stock Brokers are allowed to fund the margin requirement of their clients. Is the state True or False? |
| True |
| False |
| Q9.A call option is said to be ___ when the spot price is higher than the strike price. |
| At the money |
| Out of the money |
| In the money |
| European |
| Q10.The mark-to-market margin debits for stock futures are done on a daily basis but the mark-to-market margin credits are done on a weekly basis - State whether True or False? |
| True |
| False |