NISM Series VIII - Equity Derivatives Paper - 25
Q1.Does the difference between the exercise price of the option and spot price affect option premium? State Yes or No. |
Yes |
No |
Q2.An equity index option like NIFTY OPTION is a_____. |
Treasury instrument |
Debt instrument |
Derivative Product |
Cash market product |
Q3.In an Index Futures contract, the tick size is 0.2 of an index point & the index multiple is Rs 50, then ‘a tick’ is valued at____. |
Rs 50 |
Rs 100 |
Rs 10 |
Rs 2.50 |
Q4.Initial margin is calculated based on _ |
Average price movement in the last 5 working days |
Value-At-Risk (VAR) based margining. |
fixed at 25% for most of the scrips and 35% for volatile scrips |
As per The Black & Scholes Model |
Q 5. A trader buys a January ABC stock futures contract at Rs 768 and the lot size is 1200. What is his profit or loss, if he squares off the position at Rs 778? |
Rs. 12000 |
Rs 1200000 |
- Rs 12000 |
- Rs 10000 |
Q6.OTC derivative market is a less regulated market because these transactions occur in private among qualified counterparties, who are supposed to be capable enough to take care of themselves. True or False |
False |
True |
Q7.Does trading in derivatives become expensive due to high margins? State Yes or No. |
Yes |
No |
Q8.The net worth of a trading member does not include – |
Intangible Assets |
Prepaid expenses |
Bad Deliveries |
All of the above |
Q9.In an Out-of-the-Money (OTM) Put option _ |
The strike price would be higher than the market price |
Exercise price would be equal to the market |
The strike price would be lower than the market price |
strike price would be zero |
Q10.Which of these complaints against a trading member can an Exchange take up for redressal? |
Claims for expenses incurred for taking up the matter with the ISC |
Losses for transactions which are not within the framework of exchange |
Claims for opportunity loss for the particular disputed trade |
Excess brokerage charged by a broker |