NISM Series VIII – Equity Derivatives Paper – 04

Q 1.A Broker or Dealer who is already registered with an existing stock exchange will have to get additional registration for the Derivative Exchange – True or False?
  True
  False

 

Q 2. The cash component of Liquid Securities can include Units of money market mutual funds and Gilt funds where an applicable haircut is 10%. – True or False?
  True
  False

 

Q3.As per J.R.Verma Committee recommendations, Volatility should be calculated based on ___ of logarithmic daily returns.
 Variance
 Delta
 Standard Deviation
 CAGR

 

Q 4. The Indian Stock Future Markets deals in ____.
 Swaps
 Equity Cash
 Equity Derivative
 All of the above

 

Q5.Impact cost is low when ___.
 volume/ liquidity is low
 volume/ liquidity is high
the scrip is trading at an all-time high
the scrip is trading at an all-time low

 

Q6.In the Options segment, if you buy a CALL, you expect the market/scrip to move __
 Down
 Up
One cannot buy a Call-in options market
Remain range-bound

 

Q7.An investor who is less risk-averse would like to have greater exposure to equity and other risky investments compared to fixed income instruments – State True or False?
  False
  True

 

Q8.Forward contracts are OTC contracts – True or False?
  True
  False

 

Q9.Excess of premium in an option over the intrinsic value is known as the time value – State True or False?
  False
  True

 

Q10.The simultaneous purchase and sale of two different tenors futures contracts in the same underlying is known as a ___.
 Limit order
 Short hedge
 Spread trade
 Long hedge

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