NISM Series VIII – Equity Derivatives Paper – 14

Q1.Delta measures the expected change in the option premium for a unit change in __.
The volatility of an underlying asset
 treasury interest rates
 time to option expiry
the spot price of the underlying asset

 

Q2.The spot price of LKK share is Rs 300, the put option of Strike Price Rs 280 is __.
 In the money
 Out of the money
 At the money
 None of the above

 

Q 3.If the Initial Margin is changed then it will apply only to fresh contracts and not to previous outstanding contracts – True or False?
  True
  False

 

Q4.Which of the following is not an application of indices?
 index derivatives
exchange-traded funds
 private equity funds
 Index funds

 

Q5.The minimum Networth requirement for a clearing member of Capital Market Segment and F&O segment is –
 Rs 50 lakhs
 Rs 100 lakhs
 Rs 250 lakhs
 Rs 300 lakhs

 

Q6.The main logic behind Position limits is to___.
prevent the market from being unduly influenced by the activities of an individual/group of investors
prevent the market from being unduly influenced by Central Govt policies
 give direction to the market to move up or down as determined by SEBI
to encourage high net worth investors to provide direction to the market

 

Q 7.A long position in a January future contract can be reversed by a short position in that stock futures of February month – True / False?
  False
  True

 

Q8.Impact cost is low when the liquidity in the system is poor
  True
  False

 

Q9.Do institutional investors pay higher margins than the individual investors for derivatives trading – State True or False?
  True
  False

 

Q10.Non Systematic risks can be reduced by diversifying one’s portfolio – True or False?
  True
  False

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