NISM Series VIII - Equity Derivatives Paper - 11
| Q1.If the liquid assets maintained by clearing member Mr. Ram are higher than that clearing member Mr. Shyam, which of the below options is/are true? |
| There is no need to maintain liquid assets |
| Both Mr. Ram and Mr. Shyam have the same level of exposure |
| Mr. Ram has a higher exposure level than Mr. Shyam |
| Mr. Shyam has a higher exposure level than Mr. Ram |
| Q2.As per SEBI rules, a stockbroker can be suspended from the derivatives segment if __. |
| he violates the conditions of registration |
| he is suspended by the stock exchange |
| he fails to pay fees |
| Any of above |
| Q3.The cost of carrying model means the price of futures is equal to ____. |
| Spot price + Cost of carrying |
| Spot Price |
| Cost of carrying |
| Spot price – Cost of carrying |
| Q 4.**Mr. Gautam has sold a put option with a strike of Rs.650 at a premium of Rs.60. What is the maximum gain per share that he may have on the expiry of this position? |
| 650 |
| 590 |
| 60 |
| 0 |
| Q 5.The Strangle strategy is similar to the straddle strategy in outlook but different in ______. |
| implementation |
| aggression |
| cost |
| All of the above |
| Q6.Theta is _____. |
| is the change in option price given a one percentage point change in the risk-free interest rate |
| a measure of the sensitivity of an option price to changes in market volatility |
| the change in option price given a one-day decrease in time to expiration. |
| speed with which an option moves with respect to the price of the underlying asset. |
| Q7.The network of clearing members does not include - |
| Bad Deliveries |
| Doubtful Debts |
| Unlisted Securities |
| All of the Above |
| Q8.Option Premium consists of two components – |
| Intrinsic value and time value |
| Sum of Call and Put premium |
| Premium value and time value |
| Intrinsic value and premium |
| Q 9.Intrinsic value of an option is the sum of Option premium and Time value - State whether True or False? |
| True |
| False |
| Q10.The liquid asset which are to be maintained by clearing members with clearing corporation can include gold and silver jewelry after applying standard 20% haircut. |
| True |
| False |