NISM Series VIII - Equity Derivatives Paper - 24
| Q1.The clearing corporation may utilize the client account margins deposited with it for fulfilling the dues which a clearing member may owe to the clearing corporation for the trades on the clearing member's own account. Is the state True or False? |
| True |
| False |
| Q2.A clearing member has deposited eligible liquid assets of Rs.75 lacs. The exchange has a minimum liquid net worth requirement of Rs. 50 lakhs. The member has not entered into any transactions so far. What is the margin available for trading? (in lakhs) |
| 75 |
| 50 |
| 25 |
| 125 |
| Q3.Is it true that an efficient cash market is required for an efficient futures market? Yes or No? |
| Yes |
| No |
| Q 4.If the price of a futures contract increases, the mark to market margin account of the holder of the short position in that contract is credited for the gain. State whether True or False? |
| True |
| False |
| Q5.The absolute amount of minimum capital adequacy requirement for derivative brokers is the same as that for the cash market - True or False? |
| True |
| False |
| Q 6. Change in option premium for a unit change in __ is known as Rho. |
| market volatility |
| Price of the underlying asset |
| Risk-free interest rate |
| liquidity |
| Q7.The idea and economic rationale of introducing forward contracts are to__. |
| help arbitrage |
| help trading |
| help hedging |
| both 1 and 3 |
| Q8.The asking price is the price at which___ |
| the cleaning corporation settles the transaction |
| the trader is prepared to sell the share |
| the trader is prepared to purchase the share |
| the trader is prepared to either buy or sell the share |
| Q 9. In India, futures and options on individual stocks are allowed on____. |
| A few selected stocks only |
| All stocks listed on any of the exchanges |
| All stocks with a stock price of more than Rs.100 or Rs 50 in A and B group resp. |
| Only those stocks which are simultaneously listed on all the stock exchanges in India |
| Q10.Higher the price volatility, higher would be the initial margin requirement - State True or False? |
| True |
| False |