NISM Series I – Currency Derivatives Exam Practice Paper 16

Q 1. The important market which opens around the afternoon of India time is/are ___.
 Japan market
 Europe / UK market
 US market
 Hongkong market


Q2.An export firm wants to hedge its export receivables and does not want unpredictable losses if the hedged position has to be fully canceled because of a delay in receipt of USD payments. What hedging instrument(s) is it likely to use?
 50 % Futures, 50 % Options
 30 % Options, 70 % Futures


Q 3. The gold prices in India are influenced the most by _____.
 USDINR rates
 EURUSD rates
 USD GOLD rates
 USD GOLD and USDINR rates


Q4.Who acts as the central counterparty to GBPINR’s future trades in India?
 Clearing Corporation
 Bank trading and clearing member


Q5.n case of Arbitration, if a person is not satisfied with the decision of the Arbitration Tribunal, what remedial measure can he take?
 He can approach the concerned stock exchange for a re-hearing.
 He can approach any Court of Law
 He can approach SEBI for suitable action
Nothing as the Tribunal’s decision is final.


Q6.The EURINR future contract is trading at 72.0050 / 72.0075. What will be the price if this contract falls by 2 ticks?
 72.0000 / 72.0025
 72.3000 / 72.0055
 72.0040 / 72.0065
 71.7500 / 72.0025


Q7.World over the financial regulators and Government are encouraging what kind of change in dealing with financial derivatives?
Move to exchange-traded derivatives
 Decentralized clearing
 Moving to OTC markets
 Decentralized settlement


Q8.Mr. Dinesh, an exporter sells 200 lots of one-month USDINR futures at 73. At the expiry, the settlement price was announced at 72.70. How much profit/loss (in Rs) did he make on the transaction?
 Loss of Rs 60,000
 Loss of Rs 45,000
 Profit of Rs. 45,000
 Profit of Rs. 60,000


Q9.The process of actual pay-in or payout to settle the contract is called Settlement – True or False?


Q10.With respect to settlement in OTC forward market, the market participant can decide to settle it via gross settlement mechanism or net settlement mechanism – True or False?

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