NISM Series VIII – Equity Derivatives Paper – 11

Q1.If the liquid assets maintained by clearing member Mr. Ram are higher than that clearing member Mr. Shyam, which of the below options is/are true?
 There is no need to maintain liquid assets
 Both Mr. Ram and Mr. Shyam have the same level of exposure
Mr. Ram has a higher exposure level than Mr. Shyam
Mr. Shyam has a higher exposure level than Mr. Ram

 

Q2.As per SEBI rules, a stockbroker can be suspended from the derivatives segment if __.
 he violates the conditions of registration
 he is suspended by the stock exchange
 he fails to pay fees
 Any of above

 

Q3.The cost of carrying model means the price of futures is equal to ____.
Spot price + Cost of carrying
 Spot Price
Cost of carrying
Spot price – Cost of carrying

 

Q 4.**Mr. Gautam has sold a put option with a strike of Rs.650 at a premium of Rs.60. What is the maximum gain per share that he may have on the expiry of this position?
 650
 590
 60
 0

 

Q 5.The Strangle strategy is similar to the straddle strategy in outlook but different in ______.
 implementation
 aggression
 cost
 All of the above

 

Q6.Theta is _____.
 is the change in option price given a one percentage point change in the risk-free interest rate
 a measure of the sensitivity of an option price to changes in market volatility
 the change in option price given a one-day decrease in time to expiration.
speed with which an option moves with respect to the price of the underlying asset.

 

Q7.The network of clearing members does not include –
 Bad Deliveries
 Doubtful Debts
 Unlisted Securities
 All of the Above

 

Q8.Option Premium consists of two components –
 Intrinsic value and time value
 Sum of Call and Put premium
 Premium value and time value
 Intrinsic value and premium

 

Q 9.Intrinsic value of an option is the sum of Option premium and Time value – State whether True or False?
  True
  False

 

Q10.The liquid asset which are to be maintained by clearing members with clearing corporation can include gold and silver jewelry after applying standard 20% haircut.
  True
  False

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