NISM Series VIII – Equity Derivatives Paper – 27

Q1.____is minimum move allowed in the price quotations.
 Theta
 Ask Price
 Tick Size
 Bid Price

 

Q2.In the Options segment, if you buy a PUT, you expect the market/scrip to move __
 Up
 Down
 Range bound
One cannot buy a PUT in the options market.

 

Q 3.Arbitrage activities would ensure that the prices of a futures contract are aligned with the prices of the underlying assets. True or False?
  False
  True

 

Q4.In a futures contract, the lot size is determined by ____.
 The Stock Exchange
 Professional Clearing Member
 The Company
 SEBI

 

Q5.As the expiry / maturity of a futures contract approaches, the spot price and future price tend to become the same. This is known as _____.
 Covariance
Cosette
 Convergence
Correlation

 

Q6.If you buy a PUT option at a premium of Rs 37 at the Strike Price of Rs 260, then the maximum possible loss on this position is ___
 Unlimited
 Rs 37
 Rs 297
 Rs 223

 

Q7.A low level of initial margin increases the possibility of defaults of a stockbroker – State True or False?
  True
  False

 

Q8.A calendar spread contract in index futures attracts a higher margin than the sum of two independent legs of the futures contract.
  False
  True

 

Q9.An American Option can be exercised only on the expiry date – State True or False?
  False
  True

 

Q 10. If futures prices are lower than the spot price of an asset, market participants may expect the spot price to come down in the future. This situation is called –
 Contango
 Reverse System
 Backwardation
 Impact costs

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