# NISM SERIES I – CURRENCY DERIVATIVES EXAM

NISM CURRENCY DERIVATIVES EXAM

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

a -7500

b-5450

c -3750

d -6250

Q (2): A trader does the following currency futures trade – sells EURINR and Buy JPYINR for an equivalent amount. What view has he executed ?

a – INR weakening against EUR

b -EUR weakening against JPY

c -EUR strengthening against JPY

d -INR strengthening against EUR

Q (3):

Which term best describes EUR currency?

a -Currency floating

b -Free floating

c -Managed float

d -Pegged to gold

Q (4): If more than one contract in a series are 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.

a -First-in, First-out (FIFO)

b -Last-in, First-out (LIFO)

c -As per the decision of the Clearing corporation

d- The Loss making contracts are first squared off

Q (5): If one year interest rate is 2.5% in UK and 9% in India. If current GBPINR spot rate is 78, what would be the one year future rate of GBPINR ?

a -Higher than 78

b -Lower than 78

c -78

d -None of the above