NISM Series VIII - Equity Derivatives Paper - 25
| Q1.Does the difference between the exercise price of the option and spot price affect option premium? State Yes or No. |
| Yes |
| No |
| Q2.An equity index option like NIFTY OPTION is a_____. |
| Treasury instrument |
| Debt instrument |
| Derivative Product |
| Cash market product |
| Q3.In an Index Futures contract, the tick size is 0.2 of an index point & the index multiple is Rs 50, then ‘a tick’ is valued at____. |
| Rs 50 |
| Rs 100 |
| Rs 10 |
| Rs 2.50 |
| Q4.Initial margin is calculated based on _ |
| Average price movement in the last 5 working days |
| Value-At-Risk (VAR) based margining. |
| fixed at 25% for most of the scrips and 35% for volatile scrips |
| As per The Black & Scholes Model |
| Q 5. A trader buys a January ABC stock futures contract at Rs 768 and the lot size is 1200. What is his profit or loss, if he squares off the position at Rs 778? |
| Rs. 12000 |
| Rs 1200000 |
| - Rs 12000 |
| - Rs 10000 |
| Q6.OTC derivative market is a less regulated market because these transactions occur in private among qualified counterparties, who are supposed to be capable enough to take care of themselves. True or False |
| False |
| True |
| Q7.Does trading in derivatives become expensive due to high margins? State Yes or No. |
| Yes |
| No |
| Q8.The net worth of a trading member does not include – |
| Intangible Assets |
| Prepaid expenses |
| Bad Deliveries |
| All of the above |
| Q9.In an Out-of-the-Money (OTM) Put option _ |
| The strike price would be higher than the market price |
| Exercise price would be equal to the market |
| The strike price would be lower than the market price |
| strike price would be zero |
| Q10.Which of these complaints against a trading member can an Exchange take up for redressal? |
| Claims for expenses incurred for taking up the matter with the ISC |
| Losses for transactions which are not within the framework of exchange |
| Claims for opportunity loss for the particular disputed trade |
| Excess brokerage charged by a broker |