NISM Series VIII – Equity Derivatives Paper – 20

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

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