NISM Series VIII - Equity Derivatives Paper - 05
| Q1.A Professional Clearing member of derivatives segment ___. |
| should also be a member of the cash segment |
| should also become a member of the cash segment within 2 years |
| provides trading facility to its clients |
| does not have any trading rights |
| Q2.When the price of a futures contract increases, the margin account ___. |
| of the buyer of the futures contract will be credited for the gain |
| of the seller of the futures contract will be debited for the loss |
| Both 1 and 2 |
| None of the above |
| Q3.Theta is a measure of the sensitivity of an option price to changes in market volatility. - State True or False? |
| True |
| False |
| Q4.When the strike price increases, the premium on call option decreases - State True or False? |
| True |
| False |
| Q5.You sold one ABC stock futures contract at Rs.268 and the lot size is 1,500. What is your profit (+) or loss (-), if you purchase the contract back at Rs.274? |
| 9000 |
| 18000 |
| -9000 |
| -18000 |
| Q6.The Intrinsic Value is zero for out-of-the-money options but always positive for in-the-money options - State True or False? |
| True |
| False |
| Q7.A stock index like Nifty ___. |
| is a basket of stocks |
| can be easily manipulated |
| Both 1 and 2 |
| None of the above |
| Q8.When a call option on an index is exercised, the option holder will receive from the option writer, a cash amount equal to the excess of spot price (at the time of exercise) over the strike price of the call option - State True or False? |
| True |
| False |
| Q9.There is higher flexibility in fixing forward contract specifications as compared to futures contract specifications - State True or False? |
| True |
| False |
| Q10.Delivery-based settlement in single stock futures is provided by __. |
| BSE |
| NSE |
| OTHER |
| Both BSE and NSE |