Q1.Does professional clearing member clear the trades of his associate Trading Member-only – State True or False? |
True |
False |
Q2.Mr A buys a call option with a lower strike price and sells another call option with a higher strike price both on the same underlying share and same expiration date, the strategy is called___ |
Bull Spread |
Bear Spread |
Butterfly Spread |
Calendar Spread |
Q3.Calendar spreads carry only __ risk. |
speculative |
market |
basis |
interest |
Q4.The stock price is ___. |
same as in the near month future contract |
same as the exercise price of an option |
same as the strike price of an option |
the price of the underlying in the spot market |
Q5.Mr. Shah purchased two futures contracts of Ambuja Cements Ltd at Rs. 180 (lot size 2000 shares). What will be his profit or loss if he sells them at Rs 187. |
Rs 14000 |
Rs 28000 |
Rs 20000 |
Rs 27500 |
Q6.The tick size is ___. |
Contract Lot size |
Average of the high and low prices |
The maximum permitted movement in the price of the contract |
The minimum permitted movement in the price of the contract |
Q7.The daily settlement prices of equity derivatives are decided by ___. |
Clearing Corporation |
SEBI |
Brokers Association |
RBI |
Q8.The minimum price movement in a scrip is called BASIS. |
True |
False |
Q9.Mr. Anand asks his broker to buy a certain number of contracts at the market price, this instruction is called___ |
arbitrage order |
limit order |
stop-loss order |
market order |
Q10.What is the main reason for which hedgers enter the futures market? |
to profit from price fluctuations |
to make long term investments |
to protect against any price uncertainties |
to make big profits |