NISM Currency Derivatives – 1

Nifty is a ________ index

________can be bought and sold on an exchange like shares.

Financial derivatives provide the facility for __________.

The first exchange traded financial derivative in india commenced with the trading of

In case of open position of any mutual fund scheme exceeding the specified limit , the penalty charged on the clearing member for each day of violation would be

For an index to be eligible for trading in derivatives segment, weightage of constituent stocks of the index, which are individually eligible for derivatives trading, should be __________

In case of open position of any Client exceeding the specified limit , the penalty charged on the clearing member for each day of violation would be

Margin percentage and lot size is decided by

An investor is bearish about Tata Motors and sells ten one-month ABC Ltd. futures contracts at Rs.6,06,000. On the last Thursday of the month, Tata Motors closes at Rs.600. He makes a _________. (assume one lot = 100)

The total number of outstanding contracts (long/short) at any point in time is called the ‘Open interest’

Mark-to-market margins are collected ___________.

The operating range applicable in the Index futures is _____

The maximum penalty for any member or client who increased the existing positions or created a new position in the security under f/o ban is __________

For equity derivatives, carrying cost is the interest paid to finance the purchase less (minus) dividend earned

Scrips or portfolios having beta greater than 1 are called aggressive scrips or portfolios respectively.

Which is the ratio of change in option premium for the unit change in interest rates?

An investor is long on 1 contract of Nifty futures purchased at Rs. 9035. Nifty Futures closes at Rs. 8855 next day. What is the mark to market for the investor? (1 Nifty contract is 75 shares).

What could be the maximum profit for a Seller of Options Contract

Which of the following are derivatives?

Long Straddle is a strategy with __________

In case of open position of any sub account of FII exceeding the specified limit , the penalty charged on the clearing member for each day of violation would be

An option which gives the holder the right to sell a stock at a specified price at some time in the future is called a

What could be the maximum loss for a Seller of Options Contract

Diagonal spreads are more suitable for ___________

Which of the following is traded in exchanges?

nvestor A wants to sell 20 contracts of August series at Rs.4500 and Investor B wants to sell 17 contracts of September series at Rs.4550. Lot size is 50 for both these constracts. The Initial Margin is fixed at 6%. How much Initial Margin is required to be collected from both these investors (sum of initial margins of A and B) by the broker?

The theoretical futures price is based on the ________.

The___________of a portfolio of options is the rate of change of the value of the portfolio with respect to the interest rate.

__________ of the option is the one who receives the option premium and is thereby obliged to sell/buy the asset if the buyer exercises on him.

Strike price has to be adjusted for stocks for which ___________ is declared.

A calendar spread becomes a naked or open position, when the near month contract expires or either of the legs of spread is closed

Which of the following prices is used to compute MTM of a futures contract in case it is not traded on a given day?V

Client A has purchased 10 contracts of December series and sold 7 contracts of January series of the NSE Nifty futures. How many lots will get categorised as regular (non-spread) open positions?

Daily settlement price of futures contracts on expiry day is ______________________

A member has two clients C1 and C2. C1 has purchased 800 contracts and C2 has sold 900 contracts in August XYZ futures series. What is the outstanding liability (open position) of the member towards Clearing Corporation in number of contracts?

Bearish Vertical Spreads can be implemented by the use of _________

Securities Transaction Tax (STT) in case of Sale of an option in securities is _______

A Local Jeweler agrees to buy 3 kilograms of gold from whole sale gold trader after 2 months. What type of contract we are reffering here to?

Bullish Vertical Spreads can be implemented by the use of _________

A put option gives the buyer a right to sell how much of the underlying to the writer of the option?

Nifty consists of securities having _____ market capitalization stocks.

Ms. Shetty has sold 800 calls on DR. REDDY’S LAB at a strike price of Rs.882 for a pre mium of Rs.25 per call on April 1. The closing price of equity shares of DR. REDDY’S LAB is Rs. 884 on that day. If the call option is assigned against her on that day, what is her net obligation on April 01?

The F&O segment of NSE provides trading facilities for the following derivative instruments, except

__________ take advantage of a discrepancy between prices in two different markets

An index put option at a strike of Rs 2176 is selling at a premium of Rs 18 At what index level will it break even for the buyer of the option

Forward contracts are ________ contracts.

Usually, open interest is maximum in the _______ contract.

The may futures contract on XYZ ltd. closed at Rs.3940 yesterday. It closes today at Rs.3898.6. The spot closes at Rs.3800. Raju has a short position of 3000 in the may futures contract. he sells 2000 units of may expiriing put options on XYZ with a strike price of Rs.3900 for a premium of Rs.110 per unit. What is his net obligation to/from the clearing corporation today?

Selling one market lot of calls at a strike of 3800 and Buying a market lot of calls at a strike of 4200 is an example for

Cash and Carry model for futures pricing is also known as non-arbitrage model

The first stock index futures contract was traded at _____________

The normal trading is resumed in a scrip banned in derivatives segment if the open interest __________

Hedge contract month is the maturity month of the contract through which a trader hedges his position

___________ is the last day on which the futures contract will be traded, at the end of which it will cease to exist

Clearing corporation on a derivatives exchange becomes a legal counterparty to all trades and be responsible for guaranteeing settlement for all open positions.

An arbitrage is a deal that produces risk free profits by exploiting a mispricing in the market

The beta of TELCO is 0.8. A person has a long TELCO position of Rs. 800,000 coupled with a short Nifty position of Rs. 600,000. Which of the following is TRUE?

STT for sale of option in Securities

To be eligible for trading in derivatives segment, the market wide position limit of the stock should be ________

Cost of Carry represents the relationship between ___________ and ______________ Prices

Theta is also referred to as the _________ of the portfolio

A corporate manager can

___________ is created when the underlying view on the market is positive but the trader would also like to reduce his cost on position

if we compute the index based on weights of each security based on non promoter holding, it is called ______

A January month Nifty Futures contract will expire on the last _____ of January

The order size (in value terms) required to cause a change in the stock price equal to one-quarter of a standard deviation is called as _______

OTC derivative market is highly regulated market because these transactions occur in private among qualified counterparties

Institutional investors world wide are major users of ______.

The intrinsic value of a call option is

Which is true about IOC – Immediate or Cancel order in future and option segment?

Arbitragers generally lock in their profits unlike traders who trade naked contracts

What is the outstanding position on which initial margin will be levied, if no proprietary trading is done and the details of client trading are one client buys 1000 units at the rate 1260 and the second client buys 1000 units at the rate Rs 1255 and sells 1000 units at the rate Rs 1260

A defaulting members clients positions could be transferred to ____________ by the Clearing Corporation.

Vertical spread is also known as Calendar spread

Corporate actions are broadly classified under _____________ and _____________

Put option seller will have the obligation to sell if the put option buyer exercises his right.

SBI is trading at Rs. 1800 in the cash market. What would be the price of SBI futures expiring three months from today. Risk free rate = 8% p.a.

Santhosh is bullish about company XYZ and buys ten one-month XYZ futures contracts at Rs.296,000. On the last thrusday of the month, XYZ closes at Rs.271. he makes a ________________

In the NEAT F&O system, the hierarchy amongst users comprises of _______.

Clients positions can not be netted off against each other while calculating initial margin on the derivatives segment.

The expiration date is the date on which

On expiry, the settlement price of a stock futures contract is _______.

When the strike price is lower than the spot price of the underlying, a call option will be ____.

________ wish to bet on future movements in the price of an asset

Hedgers provide the liquidity and the dept to the derivatives market.

Horizontal spread is also known as Time Spread

If you have sold a XYZ futures contract (contract multiplier 50) at 3100 and bought it back at 3300, what is your gain/loss?

Which of the following is required for personnel working in the industry in order to dispense quality intermediation?

In a Stop Loss Buy Order, Limit Price is

________ involves combining options on the same underlying and of same type (call/ put) but with different strikes and maturities

Option seller will be legally bound to honour the contract by settling in cash if the option buyer does not exercise.

Which of the following cant be a underlying asset for a FINANCIAL derivative contract?

________ uses futures or options market to reduce or eliminate risk

American options can be exercised any time during the contract cycle.

All futures contracts for each member are ________________ to the daily settlement price of the contract.

Capacity of derivatives market to absorb buying/selling by hedgers is directly dependent upon availability of traders, who act as counter-party to hedgers

Derivatives help in ____.

Which of the following is the duty of the trading member?

Mr.X purchases 100 Put Option on Stock S at Rs 30 Per Call with Strike Price of Rs 280. If on Exercise date, Stock Price is Rs 350, ignoring transaction cost, Mr.X will choose

Options offer _________