NISM Series VIII – Equity Derivatives Paper – 21

Q1.What does Beta of 1 mean?
It means that the expected percentage in stock price will be more than the percentage change in the index
It means that the expected percentage in stock price will be twice the percentage change in the index
It means that the expected percentage in stock price will be less than the percentage change in the index
It means that the expected percentage in stock price will be equal to the percentage change in the index

 

Q2.Loss on derivative transactions can be set off against any other income during the year. In case the same cannot be set off, it can be carried forward to the subsequent assessment year and set off against any other income of the subsequent year. Such losses can be carried forward for a period of _ assessment years.
 4
 8
 12
 16

 

Q3.Which tax is applicable for equity transactions done on a recognized stock exchange?
 Securities Trading Tax
 Equity Trading and Service Tax
 Derivatives Transaction Tax
 Securities Transaction Tax

 

Q4.Among the following options, in which future contract, the contract cannot be used as a means to acquire the underlying asset?
 Copper
 Gold
 Individual securities
 Stock index

 

Q5.The daily Mark to Market gain or loss is realized ___.
 in the equity spot market
 in the futures market
 in Swap trading
 in forwards market

 

Q6.A trader sells a QPR stock Put contract of Rs 200 strike for Rs 50. The lot size is 1500. What is the profit /loss if he buys the Put back at Rs 28? (in Rs)
 28500
 -28500
 33000
 -33000

 

Q7.The features of Futures are quite similar to ___.
 Options
 Swaps
 Debentures
 Forwards

 

Q8.If the far month futures prices are less than near month futures prices, this is known as __.
 Delta Hedging
 Contango
 Basis
 Backwardation

 

Q9.Cross margining between cash and derivative segments of exchange helps reduce the overall margin level applicable to investors and traders – State True or False?
  True
  False

 

Q10.The net worth requirements of Clearing Members and Trading Members is the same for the derivatives exchange – State True or False?
  True
  False

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