NISM Series VIII – Equity Derivatives Paper – 17

Q1.The Final Settlement Price in Options is the Closing price of such underlying security on the last trading day of the options contract – True or False.


Q2.The intrinsic value is the difference between the Market Price and Strike Price of the option and it can never be negative.


Q3.A fall in the price of Wipro stock increases the value of the Wipro call option – State True or False?


Q4.In the Straddle Strategy, both options have the same strike price but in Strangle strategy, the strike prices are different and are mostly out of the money options- True or False?


Q 5.The securities or money deposited by clients ____.
 will be as per brokers rules and regulations
 can be used as per the decision of Clearing Corporation and the broker
 can be attached for meeting broker’s obligation on his proprietary account
 cannot be attached for meeting broker’s obligation on his proprietary account


Q6.Nifty consists of securities having ____ market capitalization stocks.
 All of the above


Q7.When a trader buys a put option, he has an –
 Mixed view
 Bearish view
 Bullish view
 Confused view


Q8.When SEBI has approved the approved bye-laws of a derivative exchange, the exchange is free to introduce futures contracts on any number of stocks and it does not require to go to SEBI every time – State True or False?


Q9.**Higher the interest rate, higher will be the option premium – True or False?


Q10.In an ‘Opening Buy Transaction,’ the effect will be that of creating or increasing _.
 Arbitrage position
 Cross position
 Long position
 Short position

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