NISM Series I – Currency Derivatives Exam Practice Paper 07

Q 1.The maximum maturity of a EURINR contract traded on recognized currency exchange in India is ____ months.
 3
 6
 9
 12

 

Q2.Which of the following is true?
 Exchange rates are quoted in per unit of quotation currency
 Quotation currency is the first currency in a currency pair
 Base currency is the first currency in a currency pair
 Base currency is the second currency in a currency pair

 

Q3.A speculator in currency markets buys a long position in USDINR futures contract at a price of 52 and he buys 25 lots of the same. On expiry, the settlement price is announced at 52.35. How much profit (+) or loss (-) does he make?
 Profit of 875
 Loss of 875
 Profit of 8750
 Loss of 8750

 

Q 4.A trader feels that INR should depreciate against the USD in the next few months. What currency future transaction will be profitable to him if his view comes true? ( Assume everything else remaining the same )
 Buy USDINR
 Sell USDINR
 Take no action

 

Q 5. A trader is bullish about USD and buys 5 lots of one-month USDINR future contracts at Rs.301500. On the expiry, the USDINR future was settled at Rs.60. What will be his profit or loss?
 Profit of 15000
 Loss of 15000
 Loss of 1500
 Loss of 150

 

Q 6. An exporter sells 25 lots of USDINR futures contracts at a price of 57. At the expiry, the settlement price is 56.10. How much Profit or Loss did the exporter make?
 Profit of 2250
 Profit of 22500
 Loss of 2250
 Loss of 22500

 

Q 7.If 10 units of gold were valued at INR 45000 and the same was valued at USD 600. As per the gold standard methodology, what would be the value of one USD in terms of INR?
 13.33
 750
 75
 70

 

Q8.Of the following what best describes the guidelines for brokers with respect to the execution of client orders?
 Intimate the execution or non-execution by the end of the day
Intimate the execution or non-execution within three hours of deal execution
 Promptly intimate the execution or non-execution of the order
Intimate the execution or non-execution within two hours of deal execution

 

Q 9.The value of one tick on each USDINR contract is Rupees ____.
 0.25
 2.5
 0.0025
 25

 

Q10.Which of the below options best describe the total open interest which is used for the purpose of monitoring of open position during the day?
 Total open interest at 12.00
 Maximum open interest in the previous day
 Minimum open interest in the previous day
Total open interest at end of the previous day

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