NISM Series VIII - Equity Derivatives Paper - 27
| Q1.____is minimum move allowed in the price quotations. |
| Theta |
| Ask Price |
| Tick Size |
| Bid Price |
| Q2.In the Options segment, if you buy a PUT, you expect the market/scrip to move __ |
| Up |
| Down |
| Range bound |
| One cannot buy a PUT in the options market. |
| Q 3.Arbitrage activities would ensure that the prices of a futures contract are aligned with the prices of the underlying assets. True or False? |
| False |
| True |
| Q4.In a futures contract, the lot size is determined by ____. |
| The Stock Exchange |
| Professional Clearing Member |
| The Company |
| SEBI |
| Q5.As the expiry / maturity of a futures contract approaches, the spot price and future price tend to become the same. This is known as _____. |
| Covariance |
| Cosette |
| Convergence |
| Correlation |
| Q6.If you buy a PUT option at a premium of Rs 37 at the Strike Price of Rs 260, then the maximum possible loss on this position is ___ |
| Unlimited |
| Rs 37 |
| Rs 297 |
| Rs 223 |
| Q7.A low level of initial margin increases the possibility of defaults of a stockbroker - State True or False? |
| True |
| False |
| Q8.A calendar spread contract in index futures attracts a higher margin than the sum of two independent legs of the futures contract. |
| False |
| True |
| Q9.An American Option can be exercised only on the expiry date - State True or False? |
| False |
| True |
| Q 10. If futures prices are lower than the spot price of an asset, market participants may expect the spot price to come down in the future. This situation is called – |
| Contango |
| Reverse System |
| Backwardation |
| Impact costs |