NISM Series VIII - Equity Derivatives Paper - 13
| Q1.A portfolio of Rs 25 lacs has a beta of 1.20. A complete hedge is obtained by ___. |
| by selling Nifty futures of Rs 25 lacs |
| by selling Nifty futures of Rs 28 lacs |
| by selling Nifty futures of Rs 30 lacs |
| by buying Nifty futures of Rs 28 lacs |
| Q2.What will be the Delta for a Far Out-of-the-money option? |
| Near 0 |
| Near 1 |
| Near -1 |
| Near 2 |
| Q3.The beta of a stock is 0.7 and you have a buy position of Rs 3,00,000 in it. Which of the below options will give you a complete hedge? |
| Sell Rs 2,10,000 Nifty |
| Buy Rs 2,10,000 Nifty |
| Buy Rs 3,00,00 Nifty |
| Sell Rs 3,00,000 Nifty |
| Q4.A derivative market would primarily have __. |
| Speculators |
| Hedgers |
| Long term investors |
| Both 1 and 2 |
| Q5.Mr. Sunil wishes to buy a futures contract of Tata Steel shares. He should ____. |
| make payments for the full value of the contract |
| make the margin payments as calculated by the exchange |
| hedge his position in Tata Steel in the Options market |
| None of the above |
| Q6.Forward Contracts are those contracts that can be customized as per the requirements of the concerned parties - True or False? |
| False |
| True |
| Q 7.Which amongst the following comes under the purview of Securities Contracts (Regulation) Act-1956? |
| Currency |
| Securities |
| Gold |
| Commodities |
| Q8.The strike price is the price per share for which the underlying security may be purchased or sold by the option holder - State True or False? |
| True |
| False |
| Q9.A penalty or suspension of registration of a stockbroker from derivatives exchange/segment under SEBI (Stock Broker and Sub-broker) Regulations, 1992 can take place if __ |
| The stockbroker violates the conditions of registration |
| The stockbroker fails to pay fees |
| The stockbroker is suspended by the stock exchange |
| In any of the above situations |
| Q10.The losses for a seller of Call options are ____. |
| limited |
| unlimited |