NISM Series VIII - Equity Derivatives Paper - 06
| Q1.A stockbroker has two clients P and Q. P has purchased 200 contracts and Q has sold 300 contracts in the May Tata Steel futures series. What is the outstanding liability (open Position) of the member towards Clearing Corporation in the number of contracts? |
| 100 |
| 200 |
| 300 |
| 500 |
| Q2.What does selling short a stock means? |
| Seller owns the stock he is supposed to deliver |
| The seller has sufficient time to deliver the stock which he sold |
| Seller does not own the stock he is supposed to deliver |
| The seller has to deliver the stock within a short time |
| Q3.___ is a deal that produces profit by exploiting a price difference in a product in two different markets. |
| Hedging |
| Trading |
| Speculation |
| Arbitrage |
| Q4.A person sells a put option of Strike Price 265, market lot 1000, at a premium of Rs 40, the maximum profit he can make is __. |
| Rs 25,000 |
| Rs 2,65,000 |
| Rs 40,000 |
| Unlimited |
| Q5.Main objectives of the Trade Guarantee Fund (TGF) are : |
| To protect the interest of the investors in securities. |
| To inculcate confidence in the minds of market participants. |
| To guarantee settlement of bonafide transactions of the members of the exchange. |
| All of the above |
| Q6.Derivative markets mostly comprise of – |
| Long term investors |
| Speculators |
| Hedgers |
| Both 2 & 3 |
| Q7.Beta is a measure of systematic risk of a security that cannot be avoided through diversification. |
| True |
| False |
| Q8.Mr. Sam is an equity fund manager and he is bearish on the stock market. How will he use this view to create a hedge? |
| He will sell all his stocks |
| He will decrease the NAV of his fund |
| He will sell index futures |
| He will buy index futures |
| Q9.___ is the ratio of change in option premium for a unit change in volatility. |
| Rho |
| Theta |
| Delta |
| Vega |
| Q10.Value-at-risk calculations are done on the basis of ____. |
. s
| best possible market conditions |
| ideal market conditions |
| volatility |
| 90 % risk parameter |