AAFM Secret Sauce Question Bank

1. Question

1 point(s)

The main motive behind derivatives market includes

Managing risk
Arbitration
Hedging
Both option A and C

2. Question

1 point(s)

Permission to stock exchanges to start derivative segment is given by

SEBI
RBI
IRDS
none

3. Question

1 point(s)

Which of the following measures the impact on premium based on time left for expiry

rheo
theta
gamma
delta

4. Question

1 point(s)

What is the lot value of a 2000 stike price call option (load multiplier 50)

10000
15000
20000
25000

5. Question

1 point(s)

M to M margin requirement takes place on

monthly basis
fortninght basis
daily basis
yearly basis

6. Question

1 point(s)

Brokers take initial margin on the basis of

Value at risk
Stoploss model
Markowitz model
None

7. Question

1 point(s)

A farmer promises a buyer to give 5 trucks of grain in future total 50 lacs. After 3 months, he fulfills his promise. This is an example of

forward
future
options
swaps

8. Question

1 point(s)

Which of the following is not an advantage of screen base trading in relation to OTC contract

guarantee profit to intraday traders
It carries lower counterparty risk
These are generally more liquid than OTC contracts
Customized accordiung to investor's needs and preferences

9. Question

1 point(s)

Future contracts are

Standardised
exchange traded
clearing and settlement
all of above

10. Question

1 point(s)

The process when futures price meets spot prices at the time of expiry

Convergence
Correlation
Revaluation
Conception

11. Question

1 point(s)

Beta Is the measure of co relating index and

underlying stocks
Gross domestic product of the country
Options price
Options delta

12. Question

1 point(s)

The position limits of Trading members / FPIs (Category I) / Mutual Funds in equity index option contracts is higher of ______or ________of the total open interest in the market in equity index option contracts.

500 crores; 15%
1000 crores; 15%
500 crores; 20%
100 crores; 20%

13. Question

1 point(s)

For option seller premium is paid at the time of contract

FALSE, seller does not pay option premium
False, after the deal is done
Both of the above
None of the above

14. Question

1 point(s)

Index maintainance involves

Trading activities
Direct intervention in market prices
Setting or adjusting future contract prices
adjusting for corporate actions

15. Question

1 point(s)

The process when broker does excessive trading for brokrage

Phishing
Churning
Revaluating
Broking

16. Question

1 point(s)

Basis is the differnece between

Stock's alpha and delta
Spot price and futures price
Option premium and strike price
all of above

17. Question

1 point(s)

Putt call parity refers to the relationship between

futures and options on the same stock
put and call options on the same stook buy oifie ent etike prices and different maturity
call options on the same stock with the same ma ta i but alfterent strike prices
call and put options on the same stock witn the same strike prices and same maturity

18. Question

1 point(s)

Arbitrageur and hedger relationship

Arbitrageurs are risk takers ; hedgers are risk avoiders
Arbitrageurs are risk avoiders; hedgers are risk takers
Arbitrageurs take advantage of The price differentials across the markets and hedgers bets in opposite directions to limit the possible loss
Both A and C are correct

19. Question

1 point(s)

The________ offers the option holder the right to exercise the Option at the pre-agreed price at any time before the date of expiration.

American option
European option
Both of the above
none

20. Question

1 point(s)

A ___________ is a derivative contract between two parties where they agree to exchange cash flows or liabilities over a specified period.

Swap
Futures
options
none

21. Question

1 point(s)

An__________ is an options trading strategy in which a trader will buy and sell multiple options of the same type – either call or put – with the same underlying asset.

Covered call
Protectuive collar
Options spread
Married put

22. Question

1 point(s)

What is the value of Call option buy with strike price of 3300 and market price of Rs. 3100. (Lot multiplier 50)

0
10000
50000
-50000

23. Question

1 point(s)

Which of the folowing are not true about Future contracts

These are Standardised contracts
Customised according to clients needs and requirements
allow traders to control a large position with a relatively small amount of capital, known as margin.
Futures positions are marked to market daily, meaning that profits and losses are realized daily based on the contract's price fluctuations.

24. Question

1 point(s)

Tax paid on transactions in the Indian stock exchange market

Securities transaction tax (STT )
SEBI charges
Value added tax
Brokerage

25. Question

1 point(s)

STT paid by

Investor to broker
Broker to exchange
Exchange to clearing corporation
Investor to clearing corporation

26. Question

1 point(s)

You sold a Put option on a share. The strike price of the put was Rs245 and you received a premium of Rs 49 from the option buyer. Theoretically, what can be the maximum loss on this position?

0
206
49
196

27. Question

1 point(s)

Current Price of XYZ Stock is Rs 286. Rs. 260 strike call is quoted at Rs 45. What is the intrinsic Value?

45
26
0
19

28. Question

1 point(s)

A member has two clients C1 and C2. C1 has purchased 800 contracts and C2 has sold 900 contracts in August XYZ futures series. What
is the outstanding liability (open position) of the member towards Clearing Corporation in number of contracts?

900
100
800
1700

29. Question

1 point(s)

A trader has bought 100 Shares of XYZ at Rs 780 per share. He expects the price to go up but wants to protect himself if the price falls. He
does not want to lose more than Rs1000 on this long position in XYZ. What should the trader do?

Place a limit buy order for 100 shares of XYZ at Rs 790 per share
Place a stop loss sell order for 100 shares of XYZ at Rs770 per share
Place a limit sell order for 100 shares of XYZ at Rs 770 per share
Place a limit buy order for 100 shares of XYZ at Rs770 per share

30. Question

1 point(s)

A calendar spread contract in index futures attracts

Lower margin than sum of two independent legs of future contract
Same margin as sum of two independent legs of future contract
Higher margin than sum two independent legs of future contract
No margin need to be paid for calender spread positions

31. Question

1 point(s)

Trader A wants to sel 20 contracts of August series at Rs 4500 and Trader B wants to sell 17 contracts of September series at Rs 4550. Lot size is 50 for both these contracts. The Initial Margin is fixed at 6%. How much Initial Margin is required to be collected from both these investors (sùm of initial margins of A and B) by the broker?

410000
2,32;050
502050
270000

32. Question

1 point(s)

In order to keep the index comparable all time, total return index takes into account the

Bonus
Dividend
Other Corporate actions
all of above

33. Question

1 point(s)

___________ clears the transactions on behalf of him, his clients and trading members

Clearing member
Trading cum clearing member
professional clearing member
Custodian

34. Question

1 point(s)

Power to approve byelaws of stock exchange in India lies with

SEBI
RBI
Govt of India
State Bank of India

35. Question

1 point(s)

How does the clearing corporation charges margins

Trading member on net basis
Clearing member on gross basis
Client on gross basis
Client on net basis

36. Question

1 point(s)

Brokers need to settle the runing account of clients on (1) weekly or monthly basis (2) quarterly or monthly basis (3) Weekly or quarterly basis (4) Daily or weekly basis

Only 1 is correct
Only 2 is correct
Only 3 is correct
Only 4 is correct

37. Question

1 point(s)

Shorten the time to maturity of put option higher the time value.

True
False

38. Question

1 point(s)

Custodian clears on behalf of

Clearing but not trading member
Professional clearing member
Trading cum clearing member
None

39. Question

1 point(s)

Which of the folowing orders have time condition attached

Day order
Good for day
Limit order
Both A and B above

40. Question

1 point(s)

Which futures contract has the maximum option premium

JAN
FEB
MAR
None

41. Question

1 point(s)

A _______ order instructs your broker to sell a security only at or above a specific price you set, ensuring you get at least that price or a better one.

limit sell order
market order
Stop loss order
Volume order

42. Question

1 point(s)

Which of the following about price time priority is true

Matching principle where orders are prioritized based on price and then by the time they were received, with the earliest orders at the best price getting executed first.
Orders with better prices (higher for buy orders, lower for sell orders) are prioritized over orders with worse prices
When a new order arrives, the matching engine first identifies the best available price (highest bid or lowest ask) and then, among orders at that price, executes the oldest order.
All of above

43. Question

1 point(s)

Which of the following does not represent a liquid asset for a trading member

Business interests or collectibles
Bank fixed depposit receipts
cash
Approved securities

44. Question

1 point(s)

The___________ is the difference between the highest price a buyer is willing to pay (the bid price) and the lowest price a seller is willing to accept (the ask price) for a security, representing the cost of trading in the market.

The bid ask spread
The basis
The difference points
Both A and B above

45. Question

1 point(s)

_______measures the rate of time decay in an option’s value, indicating how much an option’s price is expected to decrease as time passes, all else being equal.

Theta
Beta
Alpha
Rheo

46. Question

1 point(s)

Which of the following contracts are not settled and cleared bilaterally ?

A farmer, anticipating a potential drop in wheat prices, enters a contract to sell a specific quantity of wheat at a fixed price in the future to a miller.
A business in the UK needs to pay Rs. 500,000 to a supplier in Taiwan in 3 months. They can enter a forward contract to fix the GBP/USD exchange rate at the time of the agreement, ensuring they know the cost in GBP.
An oil company might use a contract to sell a specific number of barrels of oil at a predetermined price to protect against a potential drop in oil prices.
Trading on Curency pair GBP/INR on a reciognised stock exchange

47. Question

1 point(s)

Brokers charge ______ to cover any loss through out the day

marked to mark margin
Initial margin
Brokerages
None

48. Question

1 point(s)

Most suitable and cost effective way used by insitutions and mutual funds for hedging purposes

Index derivatives
Index mutual funds
Investing in stocks in the Indian market
All of above

49. Question

1 point(s)

Whenever a new client enters the market _________ is provided by brokers outlining the risks associated with trading or investing in capital market instruments

Risk disclosure document
Know your client document
Credit support annex
Transaction confirmation document

50. Question

1 point(s)

The buyer of an option cannot lose more than the option premium paid

True for all options
True only for american options
True only for European options
False for all options

51. Question

1 point(s)

Calender spread is an options trading strategy representing a ___ line

horizontal line
Vertical line
Both of the above
None

52. Question

1 point(s)

_____ is a document used in identification of clients

Know your client
Transaction confirmation document
Risk disclosure document
Credit support annex

53. Question

1 point(s)

In the Indian stock market, tick size, is determined by the __________

Reserve bank of India
Stock exchange
Govt of India
Securities appellate tribunal

54. Question

1 point(s)

SCORES is

Collateral reporting system of clearing corporation
SEBI's web based complaints redressal system
Customer due diligence and e KYC system
Exchange's margin reporting system

55. Question

1 point(s)

An IN THE MONEY option is

An option which cannot be proifitably exercised by the holder immediately
An option with a negative intrinsic value
An option with zero time value
An option with a positive intrinsic value

56. Question

1 point(s)

You sold a Put option on a share. The strike price of the put was Rs. 375 and you received a premium of Rs 67 from the option buyer. Theoretically, what can be the maximum loss on this position?

Rs. 308
Rs. 300
Rs. 0
Rs. 450

57. Question

1 point(s)

In India’s derivatives market, contract lot sizes are set by the _________

Reserve bank of India
Securities and exchange board of India
Govt of India
Securities appellate tribunal

58. Question

1 point(s)

What are the STT charges for the equity delivery for both buy and sell side

0.1% on buy and 0 on nothing
0.2% on both buy and sell side
0.3% on both buy and sell side
0.05% on both buy and sell side

59. Question

1 point(s)

For the clearing members who have exceeded their position limits can

May reduce the position by closing out its existing position
Bring in additional cash deposit by way of cash or bank guarantee or FDR or securities.
Both of the above
None of the above

60. Question

1 point(s)

An options trading is

A debt contract
An equity contract
A derivative contract
An index contract

61. Question

1 point(s)

Future contracts are standardised by the

SEBI, ensuring uniformity in terms of contract size, expiration dates, quality specifications
Stock exchange, ensuring uniformity in terms of contract size, expiration dates, quality specifications
RBI , ensuring uniformity in terms of contract size, expiration dates, quality specifications
Ministry of finance, ensuring uniformity in terms of contract size, expiration dates, quality specifications

62. Question

1 point(s)

Let us suppose C1 customer is a CA and C2 customer is management professional. Which one of the above two attarcts lesser margins

C1 customer, as he has a major role in financial markets industry
C2 customer as he is a highly qualified professional
This has no relation with the exemption. Everyone is treated same.
None of the above

63. Question

1 point(s)

If transaction costs in the derivatives market _______, it generally leads to ______ customers and __________market activity

Increased, fewer, reduced
Increased, more, reduced
Increased, fewer, increased
Reduces, fewer, reduced

64. Question

1 point(s)

Which of the following is an important code of conduct for financial market intermediaries

He should be calm, polite and courteous with his customers
He should strictly folow the rules and regulations of the stock exchange
The timings of clients's meetings and callings should be fixed from 9:00 am to 6:00 pm
All of above

65. Question

1 point(s)

Option margins are paid by

Buyer of put opion
Seller of call option
Seller of buy option
Both B and C above

66. Question

1 point(s)

Let us suppose a person buys ABC futures contract, at Rs. 4600. If the price falls down to 4500. What is the next step followed with reference to mark to margin requirement

Resultant loss of Rs. 100 is debited from the account
4500 is debited from the account
Resultant gain of Rs. 100 is credited to the account
4600 is credited to the account

67. Question

1 point(s)

Which of the following statements about short selling is true

Short selling occurs when an investor borrows a security and sells it on the open market, planning to repurchase later for less money.
Short sellers bet on and profit from, a drop in a security’s price.
Short selling has a high risk/reward ratio, offering big profits, but losses can mount quickly and may result in margin calls.
all of above

68. Question

1 point(s)

When the naked call options are sold, the seller benefits as the underlying security _______in price

Decrease
Increase
Remains same
Inadequate info given

69. Question

1 point(s)

Let us suppose a person buys ABC futures contract, at Rs. 3000. If the price increases to 3500, what is the mark to margin requirement (in amount )?

Negative cash flow of Rs. 500
Positive cash flow of Rs. 500
Both of the above
None of the above

70. Question

1 point(s)

Delta is a ratio that compares the change in the price of a derivative (like an option) to the change in the price of its

Index derivatives
Strike price
Underlying asset
Theta

71. Question

1 point(s)

Exercise date and expiration date may differ incase of _________ option

American call option
American put option
European call option only
Both A and B above

72. Question

1 point(s)

A portfolio with a beta ___________ will typically perform close to market performance

0
More than 1.0
Less than 1.0
Equal to 1.0

73. Question

1 point(s)

A call option has a value of Rs. 10, and the underlying asset has a price of Rs. 20. The underlying asset increases in price to Rs. 23, and the option value corresponds by increasing to Rs. 11. The delta is equal to

0.33
0.24
0.45
0.6

74. Question

1 point(s)

Derivative market involves

Reallocation of risk from risk avoiders to risk seekers
Transfer of risk from risk avoiders to risk seekers
Both of the above
None of the above

75. Question

1 point(s)

Which of the following combination is the correct user heirarchy in a typical derivatives trading platform or exchange (a) Corporate manager (b) bank manager © dealer (d)jobber €broker

b,a,c,d,e
a,b,c,d,e,
a,c,d,e,d
a,b,d,e,c

76. Question

1 point(s)

To adjust for a stock split of 1:1 Strike price of 1500 should come to

1000
750
500
3000

77. Question

1 point(s)

Client position cannot netted off against each other during calculation of initial margin on derevative segements.

True
False

78. Question

1 point(s)

Imagine an investor owns 100 shares of stock XYZ currently priced at Rs. 50.In order to supplement the long stock position with the collar strategy, the investor makes the following trades, which match his/her outlook for the stock and the prevailing market conditions: 1. The investor buys 1 front month put option with a strike price of Rs. 45 for a premium of Rs. 2 per share (Rs. 200 for 100 shares). 2. The investor sells 1 front month call option with a strike price of Rs. 55 for a premium of Rs. 2 per share (Rs. 200 for 100 shares). Calculate his maximum profit and maximum loss.

Rs. 500; Rs. 500
Rs. 500; unlimited
Unlimited; Rs. 500
Rs. 500; cannot say

79. Question

1 point(s)

Which of the following is true about butterfly strategy

This strategy dictates the creation of four option contracts corresponding to the price movements
Three prices are involved in this strategy. The options chain includes two call options and two put options.
This is useful for creating bear spread and bull spreads with limited risk and a cap on the profit
all of above

80. Question

1 point(s)

Post the 1: 1 bonus issue; If the pre bonus price was Rs. 390, the post bonus price will be

Rs. 390
Rs. 195
Rs. 0
Cannot say

81. Question

1 point(s)

Treasury bills future contract is quoted on the basis of

100+ Discount yield
100- Discount yield
100+ Investment yield
100- Investment yield

82. Question

1 point(s)

Interoperability of clearing corporation framework is allowed for all the products available in the Indian securities markets, EXCEPT:

Index options
Index derivatives
Interest rate deriatives
Commodity derivatives

83. Question

1 point(s)

Daily Settlement price of GOI futures contracts is

Weighted Average price of the futures for last half an hour.
Weighted Average price of the futures for the whole day
Highest traded price in the whole day
Lowest traded price in the whole day

84. Question

1 point(s)

Which of the following face value canbe bought or sold for GOI futures contarct

Rs. 500000
Rs. 300000
Rs. 200000
Rs. 100000

85. Question

1 point(s)

If GOI futures contract increases by one tick size, change is value of future contract will be

Rs. 5
Rs. 10
0
Rs. 20

86. Question

1 point(s)

In derivatives market, SPAN margin requirements are updated

2-3 times a day
2-3 times a week
2-3 times a month
2-3 times a year

87. Question

1 point(s)

RBI has instructed __________ to update the settlement basis and other market conventions on regular basis

SEBI
FIMMDA
Govt of india
None

88. Question

1 point(s)

If the long-term rate is 10% and short-term rate is 8%, the shape of term structure of rates is,

Upward sloping /positive
Humped
Flat
Inverted/negative

89. Question

1 point(s)

A “shift in the term structure of interest rates” refers to

change in the relationship between the interest rates of different maturities
change in the relationship between the interest rates of different terms of loans
Both of the above
None of the above

90. Question

1 point(s)

If the base rate of Overnight MIBOR futures is Rs 8, then its operating range will be

Rs 8.50 & Rs 7.50
Rs 8.10 & Rs 7.90
Rs 8.25 & Rs 7.75
Rs 8.05 & Rs 7.95

91. Question

1 point(s)

A Power of Attorney (PoA) executed by a client in favor of a stock broker is commonly used to facilitate the

transfer of securities for margin purposes.
Offsetting of securities
Pledging/repledging of securities
All of the above

92. Question

1 point(s)

Which of the following is a common option strategy that can be used to generate extra income on bond holding.

Covered calls
Butterfly spread
Protective put
All of the above

93. Question

1 point(s)

Daily Mark to market settlement of Exchange traded interest rate future contract is

Cash settled
Adjusted to liquid asset
Both Aa nd B above
None

94. Question

1 point(s)

Trading member can execute trades for

For himself
For his clients
Both of the above
none

95. Question

1 point(s)

True return can be calculated more easier and straight forwartd in which of the following instruments

5% Coupon bond
Zero coupon bond
Govt securities
mutual funds

96. Question

1 point(s)

What is the settlement method for 91-day bill futures?

Can be cash or physical
Cash
Physical
None of the above

97. Question

1 point(s)

The gross open positions of the Trading member across all contracts should not exceed______ of the total open interest

0.15
0.1875
0.21
0.248

98. Question

1 point(s)

A trading member is a member of

Stock exchange
Clearing corporation
Ministry of external affairs
Govt of India

99. Question

1 point(s)

If you expect the interest rate will go up in future, today you should

Buy GOI bond futures
Sell GOI bond futures
Buy underlying bond
None of the above

100. Question

1 point(s)

In which of the following instruments, return is often generated before its maturity date

Mutual funds
Treasury bills
Zero coupon bonds
10% coupon bond

101. Question

1 point(s)

Details of daily trade need to be sent to exchange by _______

Client
Clearing corporation
Broker
Not necessary to send

102. Question

1 point(s)

In Bullish vertical spread using put strategy, trader

Buy put option with lower strike and sell a put option with higher strike
Buy call with lower strike and sell a put option with higher strike
Buy put option with higher strike and sell a put option with lower strike
None of the above

103. Question

1 point(s)

Which of the following is a predominant risk for banks

Interest rate risk
Currency risk
Credit risk
Default risk

104. Question

1 point(s)

Participants buy a put option with strike price of 98.50 at a premium of Rs. 0.20. On Expiry the bond price is Rs. 98.50. What is his net pay-off?

Loss of Rs. 0.20
Profit of Rs. 0.20
No profit and no loss
Profit of Rs. 0.25

105. Question

1 point(s)

Which of the following is a 3 quarterly contracts of GOI futures contract

jan, feb , mar
april , may , june
June, july , august
August , sep, Oct

106. Question

1 point(s)

Which of the following future contracts are cash settled

2 year
3 Years
5 Years
All of the above

107. Question

1 point(s)

Option payoffs are

Linear
Non linear
Both of the above
All of the above

108. Question

1 point(s)

Which of the following is the last trading day for a GSEc futures contract

Last day of the trading month
Last Thursday of the month. In case the last Thursday is a trading holiday, the previous trading day shall be the expiry/last trading day
Last Thursday of the month. In case the last Thursday is a trading holiday, the next trading day shall be the expiry/last trading day
Last friday of the month.

109. Question

1 point(s)

Which of the following is an example of derivatives

Options
Futures
Both of the above
None

110. Question

1 point(s)

Total number of derivatives contracts outstanding is called

Long position
Open interest
Short position
None of the above

111. Question

1 point(s)

______is a risk management strategy that aims to reduce potential losses in an investment by taking a counterbalancing position in a related asset.

Hedging
Speculation
Arbitration
Investment

112. Question

1 point(s)

In case of Gsec options, minimum quantity freeze is allowable for the orders having quantity upto

500 lots
1000 lots
1250 lots
1750 lots

113. Question

1 point(s)

Which of the following is the last working day of the MIBOR’s future contract

Last working day of the month. In case the last working day is a trading holiday, the previous trading day shall be the last trading day.
Last working day of the month. In case the last working day is a trading holiday, the next trading day shall be the last trading day.
Last Thursday of the month. In case the last Thursday is a trading holiday, the next trading day shall be the expiry/last trading day
Last Thursday of the month. In case the last Thursday is a trading holiday, the previous trading day shall be the expiry/last trading day

114. Question

1 point(s)

If Volatility of underlying asset incereases _________ of the option will be in a profitable position

Seller
Writer
Buyer
Both of the above

115. Question

1 point(s)

Other things remaining constant, If the spot price of an option decreases, put option premium

Increases
Remains same
Decreases
Become zero

116. Question

1 point(s)

The difference between option premium and intrinsic value is

Expiry value
strike price
time value
Option value

117. Question

1 point(s)

Person goes short in a futures contract at Rs.100 and on expiry underlying price is Rs. 101, he will

Make profit of Rs. 1
Make loss of Rs. 1
No profit no loss
None of the above

118. Question

1 point(s)

Other things remaining constant, If the strike price of an option increases, call option premium

Increases
Remains same
Decreases
Become zero

119. Question

1 point(s)

Option buyer faces _______risk and option seller faces _________risk.

Limited; unlimited
Unlimited ; limited
Limited; limited
Unlimited; unlimited

120. Question

1 point(s)

Which of the followng is not a factor leading to huge growth in derivatives market

Underdeveloped markets for underlying instruments
Product innovation
Financial market liberalization
Lack of market transparency

121. Question

1 point(s)

What Is the minimum networth requirement for a stock exchange to start currency futures trading for a self clearing member

1 CRORE
5 crore
10 CRORE
20 CRORE

122. Question

1 point(s)

What is the maximum NPA for category 1 bank to start currency futures trading

not exceeding 3%
0.02
0.01
0.05

123. Question

1 point(s)

Currency option value is determined on the basis of

Spot price and strike price only
spot rate; strike price ; time to expiry; interest rate differentials
Trading member
Trading member and broker compatibility

124. Question

1 point(s)

Speculative loss can be set off against

Speculative profit transactions
Non speculative transaction s
another business or profession
Income from other sources

125. Question

1 point(s)

Which style of options are only traded on Indian exchanges?

American options
Japanese option
European options
Swiss options

126. Question

1 point(s)

Which model uses forward rate instead of spot prices to calculate theoretical price of the underlying asset

Cost of carry model
Markowitz model
Porter's five forces theory
None of the above

127. Question

1 point(s)

World over the financial regulators and Government are encouraging what kind of change in dealing with financial derivatives?

Move to exchange traded derivatives
Decentralized clearing
Moving to OTC markets
Decentralized settlement

128. Question

1 point(s)

Lot size of USD INR currency futures is

1000 USD
10000 USD
10 USD
100 USD

129. Question

1 point(s)

An Immediate Or Cancel (IOC) order__________.

gets executed at the best price during the day
is valid for one hour after it is entered in the trading system
gets exercised on the last day
is either executed or cancelled as soon as it is entered in the trading system

130. Question

1 point(s)

Indentify the Act which is mainly responsible for governing the trading of securities in India.

IRDA Act
SEBI Act
FEMA 1999
SCRA 1956

131. Question

1 point(s)

As There is a news of rise in consumer price index in USA suddenly, it will lead to

Appreciation of INR in comparison to USD
Appreciation in USD in comparison to INR
Both of the above
None of the above

132. Question

1 point(s)

Settlement date of exchange traded futures

T + 1
T day
5 Hours
T +2

133. Question

1 point(s)

Who becomes counter party in exchange traded futures

Clearing corpporation
SEBI
Broker
Clearing member

134. Question

1 point(s)

A broker should issue without delay to his client a contract note for all transactions in the form specified by the____.

Finance ministry
RBI
Exchanges
SEBI

135. Question

1 point(s)

An order in futures with automated execution logic

Stop loss order
Limit order
Volume order
Algorithmic order

136. Question

1 point(s)

Which of the following is correct regarding SEBI turnover fee

.0001% of turnover
0.01% of turnover
0.05% of turnover
0.0002% of turnover

137. Question

1 point(s)

Guidelines of ETF are given by

SEBI
Govt of INDIA
RBI
National stoick exchange

138. Question

1 point(s)

Price freeze arises

Price reaches lower or upper circuit limit
crosses Specified price range in a day
Both of the aboive
None of the above

139. Question

1 point(s)

Broker advertisement Is legal for

giving service for more than 8 years
Until permitted by stock exchange
Use of highly influential people in the advertisement
Can be permitted if trade guarantees 100% profit

140. Question

1 point(s)

Which of the following is true about position limits

Position limits are designed to prevent individuals or groups from accumulating excessive positions that could be used to artificially manipulate prices.
They ensure that no single entity can exert undue influence over the market, promoting a more equitable trading environment.
Exchanges and regulators use position limits as a tool to manage systemic risk by limiting the potential for large, concentrated positions.
All of the above

141. Question

1 point(s)

___not be permitted to participate in currency futures market.

Individuals
Societies
NRI's
Corporate's not having exposure to foreign currencies

142. Question

1 point(s)

Mr A promises to buy sugar at a specified price after 2 months but afre 2 months Mr B refuses to sell as sugar prices touch sky. This is an example of

Credit risk
Default risk
Counter party risk
Competitor risk

143. Question

1 point(s)

Guidelinesof PRO ACCOUNT given by

Institutions offreing it
SEBI
SBI
Govt of india

144. Question

1 point(s)

Marked to market margin settlemet is done on

T day
t+ 1
t+ 2
t+ 3

145. Question

1 point(s)

Base and quote currency in USD INR

USD base INR quote
USD quote; INR base
USD quote; JPY base
None of the above

146. Question

1 point(s)

Are buy call and sell put option same

Yes
No
can be any of the above
None of the above

147. Question

1 point(s)

Option premium is paid by

Call option buyer only
Any option buyer
Option seller
Butterfly option buyer only

148. Question

1 point(s)

Option premium _______ with _________ in volatility In underlying stocks

Increases, decreases
Remains same, decrease
Remains same, increase
becomes zero; increases

149. Question

1 point(s)

If the interest rates _____ option premium___

No relation with interest rates
Increases; Increases
Increases; decreases
Decreases; increases

150. Question

1 point(s)

Mr Raunak believes that there is a very strong bullish trend in USDINR. He also believes that there will be a decrease in volatility. So which option strategy is he most likely to use ?

Long Call
Long Put
Short Call
Bull call spread

151. Question

1 point(s)

Interoperability of clearing corporation framework is allowed all the products in the indian securities market except

Commodity derivatives
Currency derivatives
Interest rate derivatives
Cash market

152. Question

1 point(s)

Other things keeping constant, if spot prices increases, option value in call option ….______

Increases
Decreases
Remains zero
None of the above

153. Question

1 point(s)

Powers of SEBI does not include

Making regulations related to listing requirements, insider trading, and disclosure obligations
Adjudicating disputes between market participants and investors, conducting hearings, examine evidence, and issue orders to resolve disputes and enforce regulations.
Power to inspect financial statements and other documents.
None of the above

154. Question

1 point(s)

Which of the following cyurency pair is not permitted in indian stock exchanges

GBP/JPY
USD/INR
EUR/INR
GBP/INR

155. Question

1 point(s)

A person sells a USD Put option at strike of 60.50 and receives a premium of INR 0.40. What would be the breakeven point for the transaction?

60.1
60.5
60.9
60.3

156. Question

1 point(s)

Stock exchange provide as a

Clearing corpporation
Trading platform
Trading member
None of the above

157. Question

1 point(s)

FEMA deals with

Foreign exchange
Derivaticves market
Stock market
Govt securities and treasury bills

158. Question

1 point(s)

Loss on derivative transactions which are carried out in a recognised stock exchange can be carried for ________ period assessment years

6
7
5
8

159. Question

1 point(s)

Assume USD/JPY futures 115.08/115.09 and USD/INR futures is 75.64/75.65 . Then cross JPY /INR (100JPY) bid rate will be

65.72
178.56
123.86
200

160. Question

1 point(s)

A trader sells 10 lots of USD /INR at 093.60/93.85 and after a week squares off 5 lots of USD/INR at 95.80/95.95 . Find out his profit and loss

Loss of 11,750
Loss of 10,000
loss of 11,989
Loss of 12,500

161. Question

1 point(s)

A trading member buys 10 lots of USD / INR and sells 2 lots in his proprietary book. His client also buys 10 lots of USD/INR and sells 2 lots similarly. Find out the open position for both trading member and his client.

16000 self ; 8000 client
10,000 self ; 8000 client
8000 self ; 10000 client
2000 self ; 2000 client

162. Question

1 point(s)

A trading member bearish on USD/INR sells a call option at Rs. 85.60. Premium received is Rs. 0.40. At the maturity, settlement price turns out to be 89. Find the loss incurred.

Rs. 5457.62 loss
Rs. 3672 loss
Rs.3000 loss
Rs. 2500 loss

163. Question

1 point(s)

A person invested Rs. 140000 in US securities with the exchange rate of 65. After 2 years he got 25% return on his investment in USD terms. He repatriated all his earnings to India at Rs. 75. Find his holding period return

0.2378
0.4423
0.2896
0.5

164. Question

1 point(s)

A person invested Rs. 250000 in US securities with the exchange rate of 45. After 5 years he got 15% return on his investment in USD terms. He repatriated all his earnings to india at Rs. 56. Find his holding period return

0.4311
0.3487
0.4456
0.5345

165. Question

1 point(s)

Suppose the 6-month interest rate in India is 3.5% (or 7% per annum) and in the USA it is 2.5% (5% per annum). The current USDINR spot rate is 83. What is the likely 6-month USDINR futures price?

Rs. 81.67
Rs. 83.81
Rs. 84.78
Rs. 88

166. Question

1 point(s)

Broker Mr. A charges a brokerage of Rs 20 per lot of USDINR futures on only one leg of the transaction if its squared off the same day. Broker Mr B charges Rs 15 per lot of USDINR futures on both the legs even if its squared up on the same day. A client buys 15 lots of USDINR futures and sells of 10 lots the same day and the balance 5 lots after 4 days. What will be the brokerage charged by broker Mr A and Mr B respectively?

400 and 450
350 and 375
525 and 470
390 and 410

167. Question

1 point(s)

Non-deposit taking applicable NBFCs with asset size of _________ or above, are allowed
to participate in the designated currency options exchanges recognized by SEBI, as clients,

Rs. 200 crores
Rs. 350 crores
Rs. 1000 crores
Rs. 600 crores

168. Question

1 point(s)

What is the SEBI turnover fees for per crore turnover foe currency derivatives segment

Rs. 10
Rs. 12
Rs. 15
Rs. 18

169. Question

1 point(s)

What is the liquid networth required for a trading member to maintain at all points of time excluodng all margins

Rs. 20 lakhs
Rs. 25 lakhs
Rs. 50 lakhs
Rs. 90 lakhs

170. Question

1 point(s)

Minimum networth required for AD category 1 bank in order to become Trading member and clearing members is __________. They should also maintain a minimum capital adequacy ratio of _______

Rs. 300 crores; 10%
Rs. 500 crores; 10%
Rs. 550 crores; 15%
Rs. 600 crores; 20%

171. Question

1 point(s)

Basis risk arises because of

The relationship between the underlying asset and the hedging instrument is often imperfect, meaning they don't always move in the same direction or by the same magnitude
If the hedged asset is of a different quality or grade than the hedging instrument,
If the delivery date of the hedged asset and the expiration date of the futures contract don't align perfectly
All of the above

172. Question

1 point(s)

A person has invested INR 100,000 in an indian corporate bond for a year giving a return of 16% in one year. The person plans to use the proceeds from the maturity of corporate bond to fund his sons’ education in US. At the time of investing in the corporate bond, USDINR spot rate was 70and one year premium was 4%. The person decides to hedge currency risk using USDINR one year futures. At the end of one year, how many USD can this person remit to his son ?

1320
1417
1083
1593

173. Question

1 point(s)

When does spot price equals to strike price

For an in the money option
For an at the money option
For an out of the money option
At the time of the maturity

174. Question

1 point(s)

In the OTC contracts, settlement is done______

the process is done bilaterally between the two counterparties involved in the trade, without the involvement of a central clearing house
the process is done unilaterally between the two counterparties involved in the trade, with the involvement of a central clearing house
With the involvement of stock exchange
Settlement may or may not be done

175. Question

1 point(s)

Which of the following statements is correct with reference to relation between limit price and trigger price in buy stop loss order

In a buy stop-loss order, the limit price is always set lower than or equal to the trigger price.
In a buy stop-loss order, the limit price is always set higher than or equal to the trigger price.
In a buy stop-loss order, the limit price is always set 1
None of the above

176. Question

1 point(s)

Tick can be said as

Largest possible price movement of a trading instrument, often a stock or a futures contract.
Smallest possible price movement of a trading instrument, often a stock or a futures contract.
The highest price a buyer is willing to pay for a contract
The lowest price a buyer is willing to pay for a contract

177. Question

1 point(s)

Which of the following is correct regarding regulations for broker in the context of trade executed

The Broker should inform the clients about the trades executed at sharp 12 noon daily.
The Broker should inform the clients about the trades after every 2 hours
The Broker should inform the clients about the trades executed at the end of the day
The Broker has no legal obligation to inform about the trades

178. Question

1 point(s)

Foreign exchange market in India is regulated by

RBI under the powers conferred by FEMA
SEBI
IRDA
Ministry of external affairs

179. Question

1 point(s)

Which of the following is true about selling a call option ?

also known as "writing" or "shorting" a call
A strategy where an investor sells the right to buy an underlying asset at a specific price (the strike price) within a certain timeframe. T
The seller receives a premium upfront and hopes the price of the underlying asset will not increase above the strike price by the expiration date.
All of the above

180. Question

1 point(s)

An exporter hedges 20000 USD by buying September 2020 USDINR Put option at a strike price of Rs 73.00 when the price was Rs 0.47/0.49 . The exporter received USD in his account on 20th September. He decided to cancel the option on 20th September when the price for the same contract was Rs 0.22/0.24. How much loss did the exporter make on cancelling the Put option if the latest available RBI USDINR reference rate was Rs 72.50.

Loss of Rs 5000
Loss of Rs 5200
Loss of Rs 5400
Loss of Rs 5600

181. Question

1 point(s)

A trading member (TM) buys 9 lots of April USDINR futures and also sells 9 lots of May futures in his proprietary book. On the same day, a client of the TM buys 9 lots of April futures and sells 9 lots of May futures. What would be the open position (in USD) of TM and his client at the end of the day?

Zero and Zero
18000 and 18000
36000 and 18000
Zero and 18000

182. Question

1 point(s)

Assume you are an exporter, and you want to sell USD that you have received as export remittance. The bank quotes a price of 75.10 / 75.12 for USDINR. At what price can you sell one unit of USD?

75.18
76.11
75.01
75.1

183. Question

1 point(s)

A student going abroad for higher studies gets a loan of Rs 10,00,000 sanctioned from his bank He has to make the payment to the University after one month and he is concerned about foreign exchange (FX) rate fluctuation. To hedge the FX risk, he wants to buy an exchange-traded call option with a strike price of Rs.50.00 . How many lots of call options should he buy?

20
22
26
29

184. Question

1 point(s)

A trading member buys 80 lots of USDINR at 74.50 and sells 90 lots the same day at 74.60. The settlement price for the day was 74.30. What would be his mark to market margin (MTM) on the open positions ?

3000
6000
-3000
-6000

185. Question

1 point(s)

Assume that the risk-free interest rate for one year in JPY is 0.25% and in EUR is 1%. The current EURJPY spot rate is What is the FV of EURJPY

124.33
128.87
127.95
134.7

186. Question

1 point(s)

An exporter hedged 20,000 USD by buying USDINR put options at a strike of Rs 83 when the available price was Rs 0.35/0.37. Later he received USD earlier than the maturity of the contract, and decided to unwind the long put position. The available price at the time of unwinding was Rs 0.48/0.49 and the latest available FBIL USDINR reference rate was Rs 82.50. At the time of converting USD into INR, the exporter’s bank quoted him a price of Rs 82.45/75. What was the net price received per USD?

Rs. 83.76
Rs. 82.56
Rs. 86.45
Rs. 87.7

187. Question

1 point(s)

A person is required to pay the education fee for his son in USDafter 6 months. The current USDINR is trading at 82 and the premium for 6 months is 2%. The person invested Rs. 200,000 in Indian fixed income securities for 6 months @ rate of 6% p.a. The person hedges his currency risk using USDINR 6-month futures. How many dollars can this person remit to his son for education fee at the end of 6 months?

USD 2462.94
USD 3000
USD 3452.65
USD 3785.56

188. Question

1 point(s)

Person goes short in a GBPINR futures contract at Rs.99.75 and on expiry GBPINR reference rate is Rs. 100.75, he will ________?

Make profit of Rs. 1000
Make loss of Rs. 1000
No profit no loss
None of the above

189. Question

1 point(s)

A client buys a USD call option at strike of 75.5 and pays a premium of INR 0.3. What would be the breakeven point for the transaction?

75.2
75.6
76.1
75.8

190. Question

1 point(s)

Mr Kohli invested Rs 1,00,000 in US Stock Markets when the USDINR rate was 60. After one year his investment appreciated by 18% in USD terms. He sold of his investments and repatriated the money to India at the then existing rate of 62. What is his real returns in INR ?

0.2078
0.1942
0.2193
0.1766

191. Question

1 point(s)

A person has a requirement to buy one unit USD and also to sell one unit of USD in OTC spot market at the same time but in different banks. Both the banks quoted same price as 75.31/75.35. In this transaction, how much currency conversion profit/loss hs the person made as compared to a situation where he had export and import transaction in the same bank and import payment could be made from export receivables?

Profit of 3 paisa
Profit of 7 paisa
Loss of 6 paisa
Loss of 4 paisa

192. Question

1 point(s)

The minimum net worth requirement for a company to be eligible for applying to become an authorized exchange for currency futures is Rs _____

Rs 150 crore
Rs 300 crore
100 crore
Rs 200 crore

193. Question

1 point(s)

Mr. Mayur sells 10 lots of GBPINR 1 month futures when the price was 98.60/98.90 and squares off 5 lots after a week when price was 99.60/99.80.How much money did he make/lose on the part of the transaction that was squared off?

Loss of Rs 4500
Loss of Rs 6000
Loss of Rs 7850
Profit of Rs 4500

194. Question

1 point(s)

A trading member (TM) has two clients “X” and “Y” and he also does proprietary trading in currency futures. On day 1, TM buys 20 lots of USDINR one month futures and also sells 2 lots of the same contract on the same day in his proprietary book. On the same day, client “x” buys 12 lots of USDINR one month futures and also sells 2 lots of the same contract while client “Y” buys 12 lots and sells 2 lots of USDINR one month futures. What would be the open position (in USD) of the trading member, client “X” and client “Y” respectively at the end of day 1?

18000, 10000, 10000
38000, 10000, 10000
ZERO, 10000, 10000
18000, ZERO, ZERO

195. Question

1 point(s)

If 10 units of gold was valued at INR 45000 and the same was valued at USD 600. As per the gold standard methodology, what would be the value of one USD in terms of INR?

13.33
750
75
70

196. Question

1 point(s)

Mr. Balbir Singh has invested USD 8,000 in US equities and get an exchange price of 73 from its bank for converting INR into USD. In next two years his investments in US equities appreciated in value to USD 9,000. He sold off his portfolio and repatriated the capital and profits to India . His effective return after considering currency risk, on the investment turned out to be 12%. What exchange price Mr. Balbir would have received at the time of converting his profits from USD into INR?

69.0050
75.8840
72.59
78.6755

197. Question

1 point(s)

If one year interest rate is 2% in UK and 7 % in India. If current GBPINR spot rate is 98, which of the following could be closest to the six month future rate of GBPINR?

99.75
102.50
100.40
98.90

198. Question

1 point(s)

Mr. Patil in India expects international gold prices to rise by 20% from USD 1700 per ounce to USD 1900 in next six months. To benefit from the view, he buys 300 grams of gold at Rupees 5000 per gram and also sold 10 lots of 6 month USDINR futures at 73. After six months, the trader sold gold at Rs 5200 per gram and unwinds currency futures at 74.5. Assuming 1 ounce is equal to 30 grams , which of the foll best describes the return for investor and the hedging strategy that Mr. Patil may have used?

Net profit of Rs. 27000, long USDINR futures
Net profit of Rs. 45000, short USDINR futures
Negative returns, short USDINR futures
Negative returns, long USDINR futures

199. Question

1 point(s)

Broker Mr. Mehta charges a brokerage of Rs 40 per lot of USDINR futures on only one leg of the transaction if its squared off the same day. Broker Mr Shah charges Rs 25 per lot of USDINR futures on both the legs even if its squared up on the same day. A client buys 20 lots of USDINR futures and sells of 10 lots the same day and the balance 10 lots after 10 days. What will be the brokerage charged by broker Mr Mehta and Mr Shah respectively ?

Rs 750 and 980
Rs 1200 and 1000
Rs 950 and 820
Rs 1000 and 1100

200. Question

1 point(s)

If the treasury bills future contract changes by 100 ticks, what will be the change in one unit of future contract

Rs. 100
Rs. 125
Rs. 150
Rs. 500

201. Question

1 point(s)

Let us suppose a person buys a bond at Rs. 101 clean price and 101.50 dirty price. After a period of 3 days, he sells its ay 101.70 clean price and 101.85 dirty price. What is the capital appreciation on the bond.

0.70 per unit of Face value
0.50 per unit of face value
0.10 per unit of face value
0.80 per unit of face value

202. Question

1 point(s)

CCP clearing transactions takes place between

Buyer of the transaction and seller of the transaction
Buyer and central counterparty
Seller and central counterparty
Central counterparty and the members of the exchange

203. Question

1 point(s)

Which of the following measures option sensitivity to time decay

Theta
Beta
Gamma
Alpha

204. Question

1 point(s)

Under modern regulations, derivatives are commonly recognised and measured at

Fair value in the balance sheet
Book value in the balance sheet
Both of the above
None of the above

205. Question

1 point(s)

If the difference between longer term interest rate and shorter term interest rate moves from a poositive number to more positive number, the term structure of interest rates will

Flattening
Perpendicular
Shift upwards
Shift downwards

206. Question

1 point(s)

Brokers collect _________ margin on upfront basis. This is required to open a position in the market typically calculated as a percentage of the total traded value

Value at risk
Extreme loss margin
Initial margin
Daily mark to market margin

207. Question

1 point(s)

IPF ( Investor protection fund) is developed for the benefit of

Investors
Brokers
Clearing members
All of the above

208. Question

1 point(s)

A type of order in which two prices are entered is

Stop loss order
Stop limit order
Limit order
Market order

209. Question

1 point(s)

The trades yet to offset or in the outstanding position is known as

Open position
Long position
short position
Close position

210. Question

1 point(s)

Quanity of Face value that can be bought or sold for GOI bond futures

Rs. 200000
Rs. 500000
Rs. 800000
Rs. 10,00000

211. Question

1 point(s)

Offsetting long and short position in a same contracts Is allowed at

Only client level
Only broker level
Only clearing corporation
At all levels

212. Question

1 point(s)

A member who borrows under forward rate agreement (FRA) is in which position

Open position
Long position
short position
Close position

213. Question

1 point(s)

The initial price band for bond futures contracts is set by the Government of India (GOI) at_________ of the previous closing price or base price.

Plus/minus 5%
Plus /minus 8%
Plus/minus 10%
Plus/minus 12%

214. Question

1 point(s)

If a trader Buys OTM put and Sells OTM put with different strike prices it is known as

Bear put spread strategy
Calendar strategy
Butterfly strategy
Bull put spread strategy

215. Question

1 point(s)

If there is an excess volatillity in the underlying asset prices, it is beneficial for the

Option Buyer
Option writer
Broker
Clearing member

216. Question

1 point(s)

If the bonus ratio announced is A:B , then its adjustment factor will be

A/B
A*B
(A+B)/B
A+B

217. Question

1 point(s)

_______________ is the central, national agency responsible for receiving, processing, analyzing and disseminating information relating to suspect financial transactions to enforcement agencies and foreign FIUs.

Securities and exchange board of India (SEBI)
Financial intelligence unit (FIU)
Reserve bank of India (RBI)
Govt of India

218. Question

1 point(s)

Single FPI ( Foreign portfolio investor ) can transact upto long position limit of ____________

20 billions in Indian rupees
50 billions in Indian rupees
80 bilions in Indian rupees
100 Billions in Indian rupees

219. Question

1 point(s)

Market value/ lot of GOI bond futures

1 lot is Rs. 1 lakhs face value
1 lot is Rs. 2 lakhs face value
1 lot is Rs. 5 lakhs face value
1 lot is Rs. 10 lakhs value

220. Question

1 point(s)

Which of the following is true about clearing bank account

Clearing accounts are crucial for processing and settling transactions between different banks, such as checks, electronic transfers, and other payment methods.
The account temporarily holds funds until the transaction is fully processed and the funds are transferred to the final destination.
It helps ensure that interbank transactions are processed accurately and efficiently, reducing the risk of errors and delays.
All of the above

221. Question

1 point(s)

On which day generally, RBI conducts auctions for treasury bills

Every Friday of the week
Every Thursday of the week
on 15th of every month
On last working day of every month

222. Question

1 point(s)

Maturities for GOI bond futures on national stock exchange (NSE) include

1yr, 3 yr, 5 yrs
1 yr, 2 yrs, 10 yrs
6yrs, 10 yrs, 13 yrs
5 yrs, 10 yrs 15 yrs

223. Question

1 point(s)

Which of the following is true about protection put option strategy

Protective puts offer unlimited potential for gains since the put buyer also owns shares of the underlying asset.
When a protective put covers the entire long position of the underlying, it is called a married put.
A protective put is a risk-management strategy using options contracts that investors employ to guard against a loss in a stock or other asset.
All of the above

224. Question

1 point(s)

Calculate the 1-year forward rate implied by a 1-year spot rate of 5% and a 3-year spot rate of 6%.

0.065
0.0687
0.0723
0.0835

225. Question

1 point(s)

Which of the following options pricing model relys on iteration

Binomial options pricing model
Black scholes model
Monte carlo simulation
Markowitz model

226. Question

1 point(s)

Which of the following is true about discounting in option pricing

This process reflects the time value of money, as a dollar today is worth more than a dollar in the future.
Discounting acknowledges that money available today is worth more than the same amount of money in the future due to its potential earning capacity (interest).
The discount rate used in option pricing is typically the risk-free interest rate.
All of the above

227. Question

1 point(s)

The DSP is the volume weighted average Futures Price (VWAP) of the trades in the last ________- of trading.

1 hour
30 minutes
2 hours
10 minutes

228. Question

1 point(s)

In Government of India (GOI) futures contracts, the underlying asset is

Actual value
Notional value
Both of the above
None of the above

229. Question

1 point(s)

Which of the following liquid assets is not considered as cash equivalent

Cash
Bank accounts
Investment in bonds
Moneyt market instruments

230. Question

1 point(s)

In the case of interest rate futures, the underlying asset is often Treasury bills, which may have their interest calculated using the _________ method.

Actual /30
Actual/365
Actual/ 360
None

231. Question

1 point(s)

Which of the following is not considered as security under SCRA Contract act

Mutual funds
Stocks
Debentures
Fixed deposit with banks

232. Question

1 point(s)

If participant buy 10 lot of single bond futures at Rs. 99, then contract value

20,000,00
1999000
1980000
None of the above

233. Question

1 point(s)

_________seeks to offset the risk of changes in the fair value of an existing asset
or liability or an unrecognised firm commitment that may give rise to a gain or loss being
recognised in the statement of profit and loss.

Fair value hedge accounting model
Cash flow hedge accounting model
Net investment hedging model
None of the above

234. Question

1 point(s)

An investor has a Rs. 26 Crores portfolio of GOI bonds with portfolio duration of
6.1. The bond futures have duration of 4.7. The one-month GOI bond futures price is Rs.
98.50. What is the number of futures contracts to fully hedge the portfolio?

1713 Approx
1500 Approx
1643 approx
1852.56 Approx

235. Question

1 point(s)

Base minimum capital required for proprietary trading and trading on behalf of client without Algo

Rs. 10 lakhs
Rs. 15 lakhs
Rs. 25 lakhs
Rs. 50 lakhs

236. Question

1 point(s)

As a Risk Reduction Measure, all unexecuted orders shall be cancelled once stock
broker breaches ________ collateral utilization level.

90 percent
70- percent
75 [percent
85 percent

237. Question

1 point(s)

If the base rate of Overnight MIBOR futures is 3, then its operating range will be

Rs. 3.03 ; Rs. 2.97
Rs. 3.10 ; Rs. 2.90
Rs. 3.25 ; Rs. 2.75
Rs. 3.50 ; Rs. 2.50

238. Question

1 point(s)

A trader is bullish on bond (assumes interest rate will go down), so he
decides to go long on 98.75 strike call option by paying a premium of 0.45 and he expects
market to not go above 99.50, so he shorts a 99.50 call option and receives a premium of
0.20. What is the maximum profit , maximum loss and BEP in this scenario

Rs. 0.50 ; Rs. 0.25; Rs. 99.00
Rs. 0 ; 0.50 ; Rs. 50
Rs. 0.50 ; 0.30; Rs. 90
Rs. 0.50 ; Rs. 0 ; Rs. 99

239. Question

1 point(s)

Currently for Interest Rate Derivatives the SEBI turnover fees is _______per crore of turnover2

Rs. 2
Rs. 5
Rs. 7.5
Rs. 10