NISM Series VIII - Equity Derivatives Paper - 03
Q 1. A Clearing Member is responsible for the exchange for his transactions & also for the position of his trading members under him - True or False? |
False |
True |
Q2.If the tick size of the scrip is 5 paise and the spot price of that scrip is Rs. 70, what will be the next upward tick? |
69.95 |
70.005 |
70.05 |
70.5 |
Q3.In an In the money PUT option_ |
strike price would be lower than the market price |
exercise price would be equal to the market price |
strike price would be higher than the market price |
strike price would be zero |
Q4.A risky trader/speculator believes that the future price of ABC Company will fall and being a smart trader he will ____. |
buy ABC futures now and sell them later when it falls |
wait till the price of ABC futures and cash market price become the same |
sell ABC futures now and buy them later when the price falls |
will do nothing as he had suffered a loss in his previous trade |
Q5.____ means the maximum exposures in terms of a number of options and futures contacts that an investor can hold on one side of the market. |
Outstanding Limit |
Market Limit |
Position Limit |
Upper Limit |
Q6.When would a trader make a profit on a short position of September futures? |
when he buys an October future at a lower price |
when he sells another September future at a lower price |
he squares of this short position by buying the September future at a lower price |
when he sells October futures at a lower price. |
Q7.A clearing member is required to bring in an additional incremental deposit of __ to the clearing corporation for each additional TM he undertakes to clear and settle deals. |
Rs.5 lakhs |
Rs.10 lakhs |
Rs.15 lakhs |
Rs.20 lakhs |
Q8.Stock Brokers are allowed to fund the margin requirement of their clients. Is the state True or False? |
True |
False |
Q9.A call option is said to be ___ when the spot price is higher than the strike price. |
At the money |
Out of the money |
In the money |
European |
Q10.The mark-to-market margin debits for stock futures are done on a daily basis but the mark-to-market margin credits are done on a weekly basis - State whether True or False? |
True |
False |