NISM Series VIII - Equity Derivatives Paper - 23
| Q 1. In a derivatives exchange, the net worth requirement for a clearing member is higher than that of a non-clearing member – State whether True or False? |
| True |
| False |
| Q2.Position limits have been designed to ____. |
| prevent the markets from being wrongly influenced by Government policies |
| support the market and determine its movements |
| stop the markets being wrongly influenced by the trading activities of investor(s) |
| all of the above |
| Q3.What does Value-at-risk measure? |
| value of a volatile portfolio |
| The risk level of a financial portfolio |
| Value of illiquid shares portfolio |
| Index PE value |
| Q4.An investor who is risk-averse will invest more in Fixed Income and Debt instruments than in equity market-related investments. |
| True |
| False |
| Q5.Of the below-mentioned options, in which option is the strike price better than the market price and therefore it is profitable to exercise the option? |
| At-the-money option |
| Out-of-the-money option |
| In the money option |
| None of the above |
| Q6.At the time of final settlement, the seller/writer of the option will recognize the adverse difference he paid to the buyer as _ in his profit and loss account. |
| Expenses |
| Loss |
| Debt |
| Profit |
| Q7.A put option gives the buyer the right to _____. |
| Buy the underlying at market price |
| Buy the underlying at a set price |
| Sell the underlying at market price |
| Sell the underlying at a set price |
| Q8.Of the below options, when will the April index future contract be introduced on NSE? |
| On the 1st trading day after last Thursday in March |
| On the 1st trading day after last Friday in March |
| On the 1st trading day after last Thursday in January |
| On the 1st trading day after last Friday in January |
| Q9.Contract month is the month in which futures contract – |
| Expires |
| Are at the lowest price |
| Are at its highest price |
| None of the above |
| Q10.As per the rules, the minimum net worth of clearing members who handle and clear/settles only deals executed by him is higher than those clearing members who handle institutional trades. |
| False |
| True |