# NISM Series I – Currency Derivatives Exam Practice Paper 01

 Q (1): A trader sells 10 lots of EURINR 1 month futures when the price was 82.60/82.80 and squares off 5 lots after a week when the price was 83.75/83.85. Calculate the profit or loss on the squared-up transaction.
 -7500 -5450 -3750 -6250 Report this Question?

 Q (2): A trader does the following currency futures trade – sells EURINR and Buys JPYINR for an equivalent amount. What view has he executed?
 INR weakening against EUR EUR weakening against JPY EUR strengthening against JPY INR strengthening against EUR Report this Question?

 Q (3): An exporter hedges 20000 USD by buying September 2020 USDINR Put option at a strike price of Rs 73.00 when the price was Rs 0.47/0.49. The exporter received USD in his account on 20th September. He decided to cancel the option on 20th September when the price for the same contract was Rs 0.22/0.24. How much loss did the exporter make on canceling the Put option if the latest available RBI USDINR reference rate was Rs 72.50?
 Loss of Rs 5000 Loss of Rs 5200 Loss of Rs 5400 Loss of Rs 5600 Report this Question?

 Q (4): If more than one contract in a series is outstanding at the time of expiry/ squaring off, the contract price of the contract so squared off is determined using ___ method for calculating profit/loss on squaring-up.
 First-in, First-out (FIFO) Last-in, First-out (LIFO) As per the decision of the Clearing corporation The Loss-making contracts are first squared off Report this Question?

 Q (5): If one-year interest rate is 2.5% in the UK and 9% in India. If the current GBPINR spot rate is 78, what would be the one-year future rate of GBPINR?
 Higher than 78 Lower than 78 78 None of the above Report this Question?

 Q (6): Margins across the various clients of a member are collected on a gross basis – State True or False?
 True False Report this Question?

 Q (7): RBI reference rate is the rate published daily by RBI for spot rate for various currency pairs at around ____.
 9:00 10.30 am 12.30 pm 15:00 Report this Question?

 Q (8): The methodology usually used to value European options is ___.
 Binomial pricing Black and Scholes London – Paris pricing system Llyods Theory of option pricing Report this Question?

 Q (9): Which of the following example is that of Market Making?
 A real estate agent quoting a price to sell a bungalow A jewelry store owner quoting a price to buy old jewelry and also quoting a price to sell new jewelry A wholesale fruit vendor quoting a price to sell fruits at low prices A steel junk dealer quoting a price to buy a very old car Report this Question?

 Q (10): ___ is TRUE for Exchange Traded Derivatives.
 Bilateral trade settlement It is only available in stocks and currencies Centralized trade settlement Decentralized counterparty credit risk management Report this Question?