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Question 1 of 500
1. Question
Most of the world Indices are designed on ________________________
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Question 2 of 500
2. Question
For taking a position in Futures contract, initial margin is payable by
CorrectIncorrect -
Question 3 of 500
3. Question
A trading member’s client C1 bought 10 lots of XYZ Stock March Series Futures at Rs.4400 and client C2 sold 15 lots of XYZ Stock March Series Futures at Rs.4450. Lot size is 50 for both these contracts. If the initial margin is 6%, what is the total margin to be collected by trading member from client C1 and client C2 combined?
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Question 4 of 500
4. Question
What is the expiration day for Sensex Futures Monthly contracts?
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Question 5 of 500
5. Question
Cost of Futures = Spot Price + Cost of carry. True or False?
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Question 6 of 500
6. Question
Which of the following is not an assumption of Cost of Carry model?
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Question 7 of 500
7. Question
Which of the following is not an assumption of Cost of Carry model?
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Question 8 of 500
8. Question
You bought ABC Stock Futures at Rs.400 and the lot size is 1500. What is the Profit (+) or loss (-), if you sell the futures at 420?
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Question 9 of 500
9. Question
As per ____________ option, the owner(buyer/holder) of the option can exercise his right at any time on or before expiry date/day of the contract
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Question 10 of 500
10. Question
You have bought a Call of SBI of strike price of Rs 200 of January. To close the position, you will buy a PUT of same strike price of January.
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Question 11 of 500
11. Question
You have bought 1 lot of XYZ Stock Futures April Expiry, lot size 1200. How do you square off this position?
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Question 12 of 500
12. Question
As time to expiry reduces,
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Question 13 of 500
13. Question
The seller of a call option faces ____________ , while seller of the futures faces _______________
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Question 14 of 500
14. Question
You bought put option of strike price Rs.100 at Rs.4 when spot price was Rs.99. At expiry, the spot price is Rs.102. What is your profit/loss on expiry?
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Question 15 of 500
15. Question
__________ is the measure of an option’s sensitivity to time decay
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Question 16 of 500
16. Question
In India, options are priced using which method
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Question 17 of 500
17. Question
You are an Indian exporting to USA. Export receivables are due next month and you are worried about USD price risk. What strategy will you use to reduce risk.
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Question 18 of 500
18. Question
_________ Strategy is used to generate extra income from existing holdings in the cash market.
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Question 19 of 500
19. Question
A PCR of less than one signals a _________ trend
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Question 20 of 500
20. Question
A professional clearing member can clear the trades of his associates trading member and institutional clients, however a PCM is not a trading member of the exchange.
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Question 21 of 500
21. Question
What is the net worth required for Clearing member?
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Question 22 of 500
22. Question
Which of the following is reduced from networth while computing for networth of clearing member?
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Question 23 of 500
23. Question
For FPIs, the gains and losses from derivatives on a recognized stock exchange are taxable as:
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Question 24 of 500
24. Question
Derivatives traded on a recognized stock exchange are not considered as Speculative Gains and considered as Profit and gains from Business/Profession
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Question 25 of 500
25. Question
Which Institutes comes out with guidelines for accounting for derivatives
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Question 26 of 500
26. Question
If an order does not find a match in the trading system, it is ___________
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Question 27 of 500
27. Question
The limit price is necessarily set higher than the market price irrespective of buy/sell trade
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Question 28 of 500
28. Question
The contract size for GBPINR is
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Question 29 of 500
29. Question
If USD-INR moved from 43.00 to 43.30, the USD has ______ and the INR has______
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Question 30 of 500
30. Question
Arbitrage is a strategy of taking advantage of ____between two markets.
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Question 31 of 500
31. Question
In currency future contract Daily mark to market settlement will be on a __________
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Question 32 of 500
32. Question
The best buy order in the trading system is the order with the__________
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Question 33 of 500
33. Question
If you buy a call option on EURINR, then you will have_______
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Question 34 of 500
34. Question
Proprietary positions are calculated on net basis (Buy Sell)
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Question 35 of 500
35. Question
What is SPAN
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Question 36 of 500
36. Question
Businesses use derivatives primarily for __________
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Question 37 of 500
37. Question
A speculator buys 10 USD-INR contracts @Rs.47.00 per contract and sell them @Rs.45.00 per contract. Assuming 1 contract = 1000 USD, the total profit/loss made by the speculator is Rs._____
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Question 38 of 500
38. Question
________ clear and settle trades executed by TMs
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Question 39 of 500
39. Question
The payin and payout of the mark to market settlement are affected on________________.
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Question 40 of 500
40. Question
Under normal circumstances the Futures price trades at a price______than the the spot price
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Question 41 of 500
41. Question
The Standardized USDINR shall have the following features:
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Question 42 of 500
42. Question
Short hedge means underlying position of long in the foreign currency and hedging position of short in currency futures
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Question 43 of 500
43. Question
Which of the following is not included as security by SCRA:
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Question 44 of 500
44. Question
Which of the following category of market participants can short-sell bond futures?
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Question 45 of 500
45. Question
What is an IOC order?
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Question 46 of 500
46. Question
If the 6 months rates 6%, 1 year rate is 7% and 10 year is 8.5%, the shape of the term structure is______.
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Question 47 of 500
47. Question
Which of the following is not an example of a derivative on security derivatives?
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Question 48 of 500
48. Question
_____option can be exercised at any time up to expiration
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Question 49 of 500
49. Question
For a 13-Year cash settled interest rate futures contracts, the underlying is________
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Question 50 of 500
50. Question
What is the use of Quantity Freeze?
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Question 51 of 500
51. Question
Who takes position in derivatetives markets to earn risk less profit?
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Question 52 of 500
52. Question
When an order stays unexecuted in the trading system, it is called _________
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Question 53 of 500
53. Question
The situation of BUY IN aries due to failure in settlement by ________
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Question 54 of 500
54. Question
Which of the following has higher credit risk?
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Question 55 of 500
55. Question
SEBI act 1992 was introduced for________
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Question 56 of 500
56. Question
All option contracts expire on the _______
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Question 57 of 500
57. Question
A dealer can view and perform order and trade
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Question 58 of 500
58. Question
Who takes position in derivative market to earn risk less profit?
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Question 59 of 500
59. Question
As per Macaulay Duration, for a 1% rise in interest rate, the price of 4 year zero-coupon bond will fall by roughly____
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Question 60 of 500
60. Question
What is the settlement method for bond derivatives?
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Question 61 of 500
61. Question
A professional clearing member can trade, clear and settle the trade of his own account and on behalf of his client.
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Question 62 of 500
62. Question
Counterparty credit risk is substantially reduced by ________
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Question 63 of 500
63. Question
Which of these risks is most severe for Banks and Financial institutions?
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Question 64 of 500
64. Question
The underlying for bond futures is ______
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Question 65 of 500
65. Question
The regulator for the secondary market of government securities is _____
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Question 66 of 500
66. Question
Nifty is at 4500 in May. Mr. Alex, executes a trade by buying a Rs.4300 Nifty Put for a premium of Rs. 23 and a Rs. 4700 Nifty Call for Rs 43. How much he has to pay for this transaction?
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Question 67 of 500
67. Question
What is an IOC order?
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Question 68 of 500
68. Question
The NEAT-F&O trading system supports an ______
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Question 69 of 500
69. Question
Futures contracts are contracts________
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Question 70 of 500
70. Question
______ are hybrid assets.
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Question 71 of 500
71. Question
Credit spread is the price of______
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Question 72 of 500
72. Question
What is FRA?
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Question 73 of 500
73. Question
The derivative traded in the exchange market is/are_______
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Question 74 of 500
74. Question
Hedging with stock futures means_______
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Question 75 of 500
75. Question
The ____ order requires a trigger price to be specified.
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Question 76 of 500
76. Question
Margin paid by the investor at the end of the day is called MTM margin
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Question 77 of 500
77. Question
Which interest rate affect the price of Treasury Bills?
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Question 78 of 500
78. Question
The permissible maturity for underlying of Treasury Bill futures in india are_______
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Question 79 of 500
79. Question
For a 13-year cash settled interest rate futures contracts, the underlying is ______
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Question 80 of 500
80. Question
________ measures the PRICE RISK in a bond.
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Question 81 of 500
81. Question
Most consumer loans and housing loans are structured as_____
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Question 82 of 500
82. Question
The contract amount for Govt. Bond futures is______.
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Question 83 of 500
83. Question
What is the settlement method for bond derivatives?
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Question 84 of 500
84. Question
Can a member deposit Non cash collateral in exchange
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Question 85 of 500
85. Question
The regulator for the Exchange-traded interest rate derivatives is:
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Question 86 of 500
86. Question
______ is an derivatives.
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Question 87 of 500
87. Question
A stock is currently selling at Rs. 80. The put option to sell the stock at Rs. 85 costs Rs.12. What is the time value of the option?
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Question 88 of 500
88. Question
An index option is a Money Market Instrument
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Question 89 of 500
89. Question
The intrinsic value of a call option is the amount the option is_______
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Question 90 of 500
90. Question
Value-at-risk measures___________
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Question 91 of 500
91. Question
Which of these CALL options are OTM?
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Question 92 of 500
92. Question
Current Price of XYZ Stock is Rs.286. Rs. 260 strike call is quoted at Rs. 45. What is the Intrinsic Value?
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Question 93 of 500
93. Question
The value of a derivatives instrument _________
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Question 94 of 500
94. Question
If the far month futures prices are less than near month futures prices, this is known as__________
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Question 95 of 500
95. Question
If you Sell a Put option at premium of Rs 30 at the Strike Price of Rs 2000, lot is of 300 shares, then the maximum possible loss is _________
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Question 96 of 500
96. Question
A fund manager is bullish on the market. What should be his course of action?
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Question 97 of 500
97. Question
The potential returns on a long future positions are_______
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Question 98 of 500
98. Question
A call option at a strike of Rs. 176 is selling at a premium of Rs.18. At what price will it break even for buyer of the option?
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Question 99 of 500
99. Question
A buyer of Call Option?
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Question 100 of 500
100. Question
An Over The Counter option –
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Question 101 of 500
101. Question
Clients positions cannot be netted off against each other while calculating initial margin on the derivatives segment.
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Question 102 of 500
102. Question
If you buy a PUT option at premium of Rs 20 at the Strike Price of Rs 250, lot is of 2000 shares, then the maximum possible loss is___________
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Question 103 of 500
103. Question
The Money market securities have a period of more than one year – State True or False?
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Question 104 of 500
104. Question
If the base price of a security for a trading day is Rs 100 and the price range is 1%, the opening price for trading day will be_________
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Question 105 of 500
105. Question
In_____ bonds, the investor has the right to demand prepayment on specified dates before maturity
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Question 106 of 500
106. Question
The effect of reinvestment risk on a bond is _________
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Question 107 of 500
107. Question
If all the rates move in the same direction by same extent, the Term Structure of rates is called ______________
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Question 108 of 500
108. Question
Bond X and Bond Y are issued by the same issuer and have the same maturity. Bond X is priced at 98 and Bond Y at 101.50 Which of the two bonds is a better investment?
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Question 109 of 500
109. Question
Amongst the below given options, who requires a prior permission from SEBI to short sell Govt. Bond futures?
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Question 110 of 500
110. Question
The Constituent Subsidiary General Ledger(CSGL) Account can be opened by_________
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Question 111 of 500
111. Question
The role of the custodian is to settle________
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Question 112 of 500
112. Question
Which of the following is correct about the Conversion Factor?
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Question 113 of 500
113. Question
The relationship between the spot price and the future price is known as_________
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Question 114 of 500
114. Question
Identify the cost which is an added cost to the stock market traders/investor, but is not paid by them explicitly and therefore it does not appear in their contract notes?
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Question 115 of 500
115. Question
A ‘Closing buy transaction’ is a buy transaction which will have the effect of offsetting a ____________
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Question 116 of 500
116. Question
A trader has sold a ABC futures contract at 2500 and bought it back at 2700, what is the gain/loss for the trader? Lot size is 50.
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Question 117 of 500
117. Question
SCORES is _____________
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Question 118 of 500
118. Question
As per the Income Tax Act, any loss on derivatives transaction can be set-off against which income in the same year?
CorrectIncorrect -
Question 119 of 500
119. Question
Calculate the Intrinsic Value for the following Call option : Current price of the stock – Rs. 340. Call option of strike price Rs. 300 is quoted at Rs. 56
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Question 120 of 500
120. Question
Rho is linked to the __________
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Question 121 of 500
121. Question
If the share price of ABC share increases by Rs 5 and delta of its option is 0.5, then by how much will the option price rise?
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Question 122 of 500
122. Question
At a price level of Rs. 6300, what will be the value of one lot of ABC futures contract. Lot size is 50.
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Question 123 of 500
123. Question
Which are the two most important things to be considered while constructing an index?
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Question 124 of 500
124. Question
A buyer of Out-of-the-Money(OTM) Call option is ______________
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Question 125 of 500
125. Question
Speculator are those who wish to _________ risks whereas hedgers are those who wish to _________risks.
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Question 126 of 500
126. Question
The terms of the contract are decided by mutual agreement between the price in a futures contract.
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Question 127 of 500
127. Question
With regards to futures markets, BASIS is the __________
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Question 128 of 500
128. Question
If you are a seller of put option, you expect ________ of the underlying asset.
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Question 129 of 500
129. Question
The Unique Client Code, which is allotted by the broker, is linked to the ___________
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Question 130 of 500
130. Question
Mr. Ganesh thinks that the markets will go down, so he sell 10 lots of index futures at 3500. His predictions come true and the index falls and he buys back the futures contract at 3410. What is the profit he has made if one lot of index is of 50.
CorrectIncorrect -
Question 131 of 500
131. Question
A hedged portfolio will give higher returns than unhedged portfolio at all times.
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Question 132 of 500
132. Question
Initial margin to be paid in derivatives is set up taking into account the volatility of the underlying market. Generally _______
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Question 133 of 500
133. Question
The risk that cannot be controlled by diversification of portfolio is _________.
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Question 134 of 500
134. Question
________ is the ratio of change in option premium for a unit change in volatility.
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Question 135 of 500
135. Question
A trader sells a futures contract and the price rises. The trader will ___________
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Question 136 of 500
136. Question
A Forward Contract ______
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Question 137 of 500
137. Question
The Intrinsic Value is zero for out-of-the money option but always positive for the in-the-money.
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Question 138 of 500
138. Question
Shruti wants to buy a certain quantity of a share at a specified price or better. She will place a _________
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Question 139 of 500
139. Question
A put option gives the buyer a right to sell how much of the underlying to the writer of the option?
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Question 140 of 500
140. Question
What is Tick size?
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Question 141 of 500
141. Question
Mr. Subu has buy position in a stock, he can cover his long position in the stock by selling______
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Question 142 of 500
142. Question
A person has bought an option so cannot lose more than the option premium paid.
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Question 143 of 500
143. Question
For USDINR Currency Futures, previous day settlement price is 56 and Today’s settlement price is 55.50. Bunty buys 20 contracts forward from previous day. What is the the MTM settlement?
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Question 144 of 500
144. Question
Initial margin requirements are based on the _____ value at risk over a one-day time horizon
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Question 145 of 500
145. Question
Daily settlement price for mark to market settlement of futures contracts shall be based on the last 30 minutes volume weighted average price of such contract across Exchange.
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Question 146 of 500
146. Question
A member has two clients C1 and C2. C1 has purchased 800 contracts and C2 has 900 contracts in August XYZ futures series. What is the outstanding liability of the member towards clearing corporation in number of contracts?
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Question 147 of 500
147. Question
A Call option is said to be In the money when ______ whereas a Put option is said to be In the money when_____________
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Question 148 of 500
148. Question
An active trader in currency options market wants to execute his view on change in volatility over a period of time and wants to be insulated from changes in other factors impacting option pricing. What option strategy is he likely to use?
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Question 149 of 500
149. Question
Formula for computation of Option premium is ________
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Question 150 of 500
150. Question
Where all other factors affecting an option’s price remain same, the time value portion of an option’s premium will decrease with the passage of time. This is known as____________
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Question 151 of 500
151. Question
The Breakeven point (BEP) for a short call position will also be equal to _____________
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Question 152 of 500
152. Question
If you are a seller in the American option or short on American option you____________
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Question 153 of 500
153. Question
The five key determinants of a currency option’s price other than the currency price and the strike price is/are ____________
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Question 154 of 500
154. Question
What are the basic accounting heads to be maintained by any market participant for maintaining currency futures accounts?
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Question 155 of 500
155. Question
The maximum net NPA% which an AD Category 1 bank can have for it to became a Trading and Clearing member of any recognized currency futures exchange is __________
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Question 156 of 500
156. Question
What is the process of Actual Pay-in/Pay-out of Mark to Market margin or profit/loss on cancelled or on maturity of futures contract called?
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Question 157 of 500
157. Question
Due to various risks involved in derivatives market, participants who wish to trade in derivatives products are advised by their broker to carefully read the document, given to them at the time of signing the agreement. The document is known as ___________
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Question 158 of 500
158. Question
If the difference between long term rates and short term rates falls or narrows than the term structure of rates is called
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Question 159 of 500
159. Question
The value of derivatives in the balance sheet is its ‘fair value’, which is its___________
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Question 160 of 500
160. Question
Basis Risk’ refers to the differential price changes in___________
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Question 161 of 500
161. Question
Mr A has purchased a par bond for a total sum of Rs 10 lakhs. Later the Yield to Maturity(YTM) falls by one basis point(0.01%). The modified duration is 5.80. Calculate the market value of Mr. A invesments after the change in YTM.
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Question 162 of 500
162. Question
An action which may result in either profit or loss in future is known as ____________
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Question 163 of 500
163. Question
The contract Amount for Treasury Bills and Government Bond futures is ________and __________respectively.
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Question 164 of 500
164. Question
Initially, the exchange of good and service was made between parties through a mechanism known as the barter system.
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Question 165 of 500
165. Question
In __________ process, Central banks issue paper currency and hold equivalent amount of Gold in their reserve. The value of each currency against another currency is derived from Gold exchange rate.
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Question 166 of 500
166. Question
CAD and CHF stand for ____________
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Question 167 of 500
167. Question
The US Dollar is by far the most widely traded currency worldwide and is also known as__________
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Question 168 of 500
168. Question
Use of USD as a vehicle currency greatly _____ the number of exchange rates that must be dealt with in a multilateral system.
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Question 169 of 500
169. Question
In a system of 100 currencies with no vehicle currencies, potentially there would be _______ currency pair or exchange rates.
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Question 170 of 500
170. Question
Every trade in the FX market is a currency pair where one currency is bought with or sold for another currency. Therefore the two currencies are called___________
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Question 171 of 500
171. Question
________is the market between Banks where dealers quote prices at the same time for both buying and selling the currency.
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Question 172 of 500
172. Question
______ is a product whose value cannot be derived from its own value but is dependent on the value of some another product.
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Question 173 of 500
173. Question
______are customized OTC contracts between two parties, where settlement takes place on a specific date in the future at today’s pre-agreed price.
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Question 174 of 500
174. Question
In the case of a futures contract, the buyers and sellers do not enter into an agreement with one another rather both of them enter into an agreement with the exchange. This in turn eliminates the couterparty risk faced in forward.
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Question 175 of 500
175. Question
Swaps are agreements between two parties to exchange cash flows in the futures according to a prearranged formula.
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Question 176 of 500
176. Question
The value of a Derivatives contract are derived from its underlying asset but after a certain date they become completely worthless, hence it must be utilized within a given time period. This date is known as _________
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Question 177 of 500
177. Question
Assume you buy a USDINR contract at Rs 74.50, one tick move on this contract will translate to __________depending on the direction of market movement.
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Question 178 of 500
178. Question
In absence of interest rate parity, arbitrage opportunity_________
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Question 179 of 500
179. Question
Suppose the interest rate in india is 10% p.a. and in the USA is 2% pa. The current USDINR spot rate is Rs 90. What is the likely 6-month USD INR futures price?
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Question 180 of 500
180. Question
If Domestic currency depreciates against the foreign currency the exposure would result in _____________
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Question 181 of 500
181. Question
Speculators are those market participants who ______________
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Question 182 of 500
182. Question
When an HNI in india is keen to invest in gold via ETF he is faced with________
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Question 183 of 500
183. Question
The objective of hedgers is to reduce the volatility in uncertain future cash flows by locking in the future currency rates.
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Question 184 of 500
184. Question
The Daily settlement price is _________
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Question 185 of 500
185. Question
The Final settlement price is the RBI reference rate.
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Question 186 of 500
186. Question
TWS stands for __________
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Question 187 of 500
187. Question
A trader has a view that the INR may appreciate in next 6 months from current level of 66 to 64. To execute the view, he shorts 100 contracts at a price of 67.5. As expected INR appreciated. At the expiry of the contract, the settelement price was 64.5. How much profit/loss did the trader make on his transaction?
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Question 188 of 500
188. Question
What will be the Delta for far Out-of-the-money option?
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Question 189 of 500
189. Question
At price level of 6900, what will be the value of one lot of ABC futures contract? Lot size is 50
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Question 190 of 500
190. Question
Trader A wants to sell 20 contracts of August series at Rs 4500 and Trader B wants to sell 17 contract 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 by the broker?
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Question 191 of 500
191. Question
Mr. Sunil places a stop loss sell order on ABC stock with a trigger price of Rs. 450. The current market price of ABC stock is Rs 470. The order will be released for execution________.
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Question 192 of 500
192. Question
In case of Bonus shares, the new option strike price is arrived at by _________the old strike price by the adjustment factor.
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Question 193 of 500
193. Question
Mr. Hitesh is a trading member. One of his clients has purchased 12 contracts of March series index futures and another clients has sold 10 contracts of March series index futures. The exposure of Mr. Hitesh as trading member is ___________
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Question 194 of 500
194. Question
A person sells a put option of strike price 265, market lot 1000, at a premium of Rs 40, the maximum profit he can make is _________
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Question 195 of 500
195. Question
When a person sells a put option, he has a ______
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Question 196 of 500
196. Question
Rho is _______
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Question 197 of 500
197. Question
Operational risks include losses due to_____________
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Question 198 of 500
198. Question
Underlying assets can be categorized in the following categories
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Question 199 of 500
199. Question
Impact cost is low when
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Question 200 of 500
200. Question
In ______ method of calculation, each stock is given weight according to the market value of the company. The higher the market capitalization, the higher is its weight in the index.
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Question 201 of 500
201. Question
ABC company is having 500000 shares outstanding and the current share price is Rs 120 per shares. The Market Value of the Company will be____________
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Question 202 of 500
202. Question
Diversification helps in reducing the risk of the portfolio under an uncertain market scenario. Therefore, a portfolio of 50-100 stocks will give a sharp reduction in risk than a portfolio of 30 stocks.
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Question 203 of 500
203. Question
Some of the few popular indices in india are___________
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Question 204 of 500
204. Question
Matching the following with their appropriate meaning
1. Index Maintenance i. Choosing right Index stocks and deciding the calculation
2. Index Construction ii.Replacing/Changing the composition of Index
3. Index Revision iii. Adjusting the index for Corporate actionsCorrectIncorrect -
Question 205 of 500
205. Question
Futures contracts can be differentiated from a Forward contract on the basis of _________
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Question 206 of 500
206. Question
The Option premium is affected by the price movements in the underlying instrument. Therefore if the price of the underlying asset goes up the __________
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Question 207 of 500
207. Question
The term Delta positive means that the value of the contract increases as the share price falls whereas if Delta is negative it means that the value of the contract decreasesas the share price rises.
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Question 208 of 500
208. Question
The sensitivities in the market can be tracked by _______ represented by Delta, Gamma, Theta,Vega and Rho.
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Question 209 of 500
209. Question
High-interest rates will result in a decrease in the value of a call option and an increase in the value of a put option.
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Question 210 of 500
210. Question
Suppose an investor buys a stock in the cash market at Rs. 1590 and also sells a call option with a strike price of 1600, thereby earning Rs. 10 as a premium. If the stock price moves below the 1590 level he loses in the cash market but gets to keep the premium as income. This is an example of _______
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Question 211 of 500
211. Question
Investor, long in the cash market, always runs the risk of a fall in price and thereby reduction of portfolio value and MTM losses. Therefore he can either sell his entire portfolio or short futures to hedge his position. Which strategy would give him an edge in the above problem.
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Question 212 of 500
212. Question
A trader thinks that the price of the underlying asset would not move much/remain stable. So, he sells a Call and a Put option of same strike so that he can profit from the premiums. Which strategy is the trader using here?
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Question 213 of 500
213. Question
In the cash market, the price of a stock is 6100 and a 6200 strike call is available at 150 and 6000 put is trading at a premium of 140. If on expiry the spot price falls to Rs 5700
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Question 214 of 500
214. Question
Suppose a stock is trading at Rs 6000 and premiums for ATM Call and Put options are 250 and 135 resprctively. If a person buys both a call and a put at these prices, then his maximum loss will be_________
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Question 215 of 500
215. Question
The Stop-loss order which gets activated when the trigger price is reached/crossed and enters the market as a market order or as a limit order, as defined at the time of placing this stop-loss order.
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Question 216 of 500
216. Question
The total traded value is the total no. of contracts on which business took place during the day whereas the total traded volume is the total monetary value of the business which took place on the contract during the day.
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Question 217 of 500
217. Question
In the trading system, trading members are allowed to enter orders with various conditions attached which include
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Question 218 of 500
218. Question
For the unexpired futures contracts which are not traded during the last half an hour of a day, the theoretical daily settlement price is computed as F = S*ert.
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Question 219 of 500
219. Question
Non-allowable assets include__________
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Question 220 of 500
220. Question
Reports that a derivatives segment of a stock Exchange has to provide to SEBI are_______
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Question 221 of 500
221. Question
The Derivatives Exchange/segment should have a separate governing council and representation of trading/clearing members shall be limited to maximum of 40% of the total members of the governing council.
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Question 222 of 500
222. Question
‘Derivatives” is defined as a security derived from a debt instrument, share, loan whether secured or unsecured, risk instrument or contract for differences or derived from any other form of security.
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Question 223 of 500
223. Question
When a forward contract is used for hedging, the premium/discount should be amortized___________
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Question 224 of 500
224. Question
The number of futures contracts not settled
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Question 225 of 500
225. Question
The seller/writer of the option is required to pay the initial margin at the time of entering into the option contract. Such amount is shown in the balance sheet as__________
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Question 226 of 500
226. Question
The function of a financial institution is ____________
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Question 227 of 500
227. Question
Conduct of ongoing due diligence and scrutiny means________
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Question 228 of 500
228. Question
SEBI has a Centralized Grievance Management system with trcking mechanism to know the latest updates and time taken for resolution. This web-based complaints redressal system is called____________
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Question 229 of 500
229. Question
Which of the following specific parameters are related to the overall client due Diligence Process
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Question 230 of 500
230. Question
Arbitration is a quasi-judicial process of settlement of disputes between Trading Members, Investors, Clearing Members and also between Investor and Issuers Companies.
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Question 231 of 500
231. Question
If you sell option with a strike of Rs 245 at a premium of Rs 40, how much is the maximum gain that you may have on the expiry of this position?
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Question 232 of 500
232. Question
On the derivatives exchanges, all the orders entered on the Trading system are at prices exclusive of brokerage.
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Question 233 of 500
233. Question
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 Rs 1000 on this long position in XYZ. What should the trader do?
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Question 234 of 500
234. Question
You sold a put option on a share. The strike price of the put was Rs 245 and you received a premium of Rs 49 from the option buyer. Theorectically what can be the maximum loss on this position?
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Question 235 of 500
235. Question
Current price of XYZ stock is Rs 286. Rs 260 strike call is quoted at Rs 45. What is the instrinsic value?
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Question 236 of 500
236. Question
A European call option gives the buyer the right but not the obligation to buy from the seller an underlying at the prevailing market price ‘on or before’ the expiry date.
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Question 237 of 500
237. Question
An option with a delta of 0.5 will increase in value approximately by how much if the underlying share price increases by Rs 2?
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Question 238 of 500
238. Question
In which option is the strike price better than the market price
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Question 239 of 500
239. Question
Mr. X purchases 100 put options on stock S at Rs 30 with a strike price of Rs 280. If on the exercise date, the stock price reaches Rs 350, ignoring transaction cost, Mr. X will choose__________
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Question 240 of 500
240. Question
Three call series of XYZ stock-January, February and March are quoted. Which will have the lowest option premium?
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Question 241 of 500
241. Question
Client A has purchased 10 contract of the December series and sold 7 contracts of the January series of the NSE Nifty futures. How many lots will get categorized as regular open positions?
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Question 242 of 500
242. Question
Selling short a stock means ___________
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Question 243 of 500
243. Question
On the derivtives exchange, a trading cum clearing member has a client who has purchsed and sold 600 and 350 contracts respectively in the August series of PQR futures (contract multiplier 50). The trading cum clearing member has purchased and sold 300 and 850 contracts respectively on his own account in the same August series of PQR futures. What is the outstanding liability of the member towards clearing corporation in the number of contracts?
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Question 244 of 500
244. Question
In the stock markets, Beta is a statistical measure of the sensitivity of the movement of a share price to the movement of the _______
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Question 245 of 500
245. Question
You sold one Zee Ent Ltd. Futures contract at Rs. 260 and the lot size is 1000. what is your profit or loss, if you purchase the contarct back at Rs. 251?
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Question 246 of 500
246. Question
If you have sold a ITC futures contract(contract multiplier 500)at 300 and bought it back at 328, what is your gain/loss?
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Question 247 of 500
247. Question
In the Option segment, if you sell a CALL at a premium of Rs 45 at the strike price of Rs 400, lot is of 200 shares, then the maximum possible profit is_______
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Question 248 of 500
248. Question
Suppose you are a trading member and have bought 14 contracts of April series index futures and sold 7 contracts of April series index futures on your own account. What will be your exposure on these transactions?
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Question 249 of 500
249. Question
What is the intrinsic value of a call option if the spot price is Rs 300 and the strike price is Rs 250?
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Question 250 of 500
250. Question
The beta of a stock is 0.7 and you have a buy position of Rs 300000 in it. Which of the below options will give you a complete hedge?
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Question 251 of 500
251. Question
Most of the world Indices are designed on ________________________
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Question 252 of 500
252. Question
For taking a position in Futures contract, initial margin is payable by
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Question 253 of 500
253. Question
A trading member’s client C1 bought 10 lots of XYZ Stock March Series Futures at Rs.4400 and client C2 sold 15 lots of XYZ Stock March Series Futures at Rs.4450. Lot size is 50 for both these contracts. If the initial margin is 6%, what is the total margin to be collected by trading member from client C1 and client C2 combined?
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Question 254 of 500
254. Question
What is the expiration day for Sensex Futures Monthly contracts?
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Question 255 of 500
255. Question
Cost of Futures = Spot Price + Cost of carry. True or False?
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Question 256 of 500
256. Question
Which of the following is not an assumption of Cost of Carry model?
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Question 257 of 500
257. Question
Which of the following is not an assumption of Cost of Carry model?
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Question 258 of 500
258. Question
You bought ABC Stock Futures at Rs.400 and the lot size is 1500. What is the Profit (+) or loss (-), if you sell the futures at 420?
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Question 259 of 500
259. Question
As per ____________ option, the owner(buyer/holder) of the option can exercise his right at any time on or before expiry date/day of the contract
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Question 260 of 500
260. Question
You have bought a Call of SBI of strike price of Rs 200 of January. To close the position, you will buy a PUT of same strike price of January.
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Question 261 of 500
261. Question
You have bought 1 lot of XYZ Stock Futures April Expiry, lot size 1200. How do you square off this position?
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Question 262 of 500
262. Question
As time to expiry reduces,
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Question 263 of 500
263. Question
The seller of a call option faces ____________ , while seller of the futures faces _______________
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Question 264 of 500
264. Question
You bought put option of strike price Rs.100 at Rs.4 when spot price was Rs.99. At expiry, the spot price is Rs.102. What is your profit/loss on expiry?
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Question 265 of 500
265. Question
__________ is the measure of an option’s sensitivity to time decay
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Question 266 of 500
266. Question
In India, options are priced using which method
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Question 267 of 500
267. Question
You are an Indian exporting to USA. Export receivables are due next month and you are worried about USD price risk. What strategy will you use to reduce risk.
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Question 268 of 500
268. Question
_________ Strategy is used to generate extra income from existing holdings in the cash market.
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Question 269 of 500
269. Question
A PCR of less than one signals a _________ trend
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Question 270 of 500
270. Question
A professional clearing member can clear the trades of his associates trading member and institutional clients, however a PCM is not a trading member of the exchange.
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Question 271 of 500
271. Question
What is the net worth required for Clearing member?
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Question 272 of 500
272. Question
Which of the following is reduced from networth while computing for networth of clearing member?
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Question 273 of 500
273. Question
For FPIs, the gains and losses from derivatives on a recognized stock exchange are taxable as:
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Question 274 of 500
274. Question
Derivatives traded on a recognized stock exchange are not considered as Speculative Gains and considered as Profit and gains from Business/Profession
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Question 275 of 500
275. Question
Which Institutes comes out with guidelines for accounting for derivatives
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Question 276 of 500
276. Question
If an order does not find a match in the trading system, it is ___________
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Question 277 of 500
277. Question
The limit price is necessarily set higher than the market price irrespective of buy/sell trade
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Question 278 of 500
278. Question
The contract size for GBPINR is
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Question 279 of 500
279. Question
If USD-INR moved from 43.00 to 43.30, the USD has ______ and the INR has______
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Question 280 of 500
280. Question
Arbitrage is a strategy of taking advantage of ____between two markets.
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Question 281 of 500
281. Question
In currency future contract Daily mark to market settlement will be on a __________
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Question 282 of 500
282. Question
The best buy order in the trading system is the order with the__________
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Question 283 of 500
283. Question
If you buy a call option on EURINR, then you will have_______
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Question 284 of 500
284. Question
Proprietary positions are calculated on net basis (Buy Sell)
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Question 285 of 500
285. Question
What is SPAN
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Question 286 of 500
286. Question
Businesses use derivatives primarily for __________
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Question 287 of 500
287. Question
A speculator buys 10 USD-INR contracts @Rs.47.00 per contract and sell them @Rs.45.00 per contract. Assuming 1 contract = 1000 USD, the total profit/loss made by the speculator is Rs._____
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Question 288 of 500
288. Question
________ clear and settle trades executed by TMs
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Question 289 of 500
289. Question
The payin and payout of the mark to market settlement are affected on________________.
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Question 290 of 500
290. Question
Under normal circumstances the Futures price trades at a price______than the the spot price
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Question 291 of 500
291. Question
The Standardized USDINR shall have the following features:
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Question 292 of 500
292. Question
Short hedge means underlying position of long in the foreign currency and hedging position of short in currency futures
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Question 293 of 500
293. Question
Which of the following is not included as security by SCRA:
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Question 294 of 500
294. Question
Which of the following category of market participants can short-sell bond futures?
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Question 295 of 500
295. Question
What is an IOC order?
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Question 296 of 500
296. Question
If the 6 months rates 6%, 1 year rate is 7% and 10 year is 8.5%, the shape of the term structure is______.
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Question 297 of 500
297. Question
Which of the following is not an example of a derivative on security derivatives?
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Question 298 of 500
298. Question
_____option can be exercised at any time up to expiration
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Question 299 of 500
299. Question
For a 13-Year cash settled interest rate futures contracts, the underlying is________
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Question 300 of 500
300. Question
What is the use of Quantity Freeze?
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Question 301 of 500
301. Question
Who takes position in derivatetives markets to earn risk less profit?
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Question 302 of 500
302. Question
When an order stays unexecuted in the trading system, it is called _________
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Question 303 of 500
303. Question
The situation of BUY IN aries due to failure in settlement by ________
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Question 304 of 500
304. Question
Which of the following has higher credit risk?
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Question 305 of 500
305. Question
SEBI act 1992 was introduced for________
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Question 306 of 500
306. Question
All option contracts expire on the _______
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Question 307 of 500
307. Question
A dealer can view and perform order and trade
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Question 308 of 500
308. Question
Who takes position in derivative market to earn risk less profit?
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Question 309 of 500
309. Question
As per Macaulay Duration, for a 1% rise in interest rate, the price of 4 year zero-coupon bond will fall by roughly____
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Question 310 of 500
310. Question
What is the settlement method for bond derivatives?
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Question 311 of 500
311. Question
A professional clearing member can trade, clear and settle the trade of his own account and on behalf of his client.
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Question 312 of 500
312. Question
Counterparty credit risk is substantially reduced by ________
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Question 313 of 500
313. Question
Which of these risks is most severe for Banks and Financial institutions?
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Question 314 of 500
314. Question
The underlying for bond futures is ______
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Question 315 of 500
315. Question
The regulator for the secondary market of government securities is _____
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Question 316 of 500
316. Question
Nifty is at 4500 in May. Mr. Alex, executes a trade by buying a Rs.4300 Nifty Put for a premium of Rs. 23 and a Rs. 4700 Nifty Call for Rs 43. How much he has to pay for this transaction?
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Question 317 of 500
317. Question
What is an IOC order?
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Question 318 of 500
318. Question
The NEAT-F&O trading system supports an ______
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Question 319 of 500
319. Question
Futures contracts are contracts________
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Question 320 of 500
320. Question
______ are hybrid assets.
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Question 321 of 500
321. Question
Credit spread is the price of______
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Question 322 of 500
322. Question
What is FRA?
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Question 323 of 500
323. Question
The derivative traded in the exchange market is/are_______
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Question 324 of 500
324. Question
Hedging with stock futures means_______
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Question 325 of 500
325. Question
The ____ order requires a trigger price to be specified.
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Question 326 of 500
326. Question
Margin paid by the investor at the end of the day is called MTM margin
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Question 327 of 500
327. Question
Which interest rate affect the price of Treasury Bills?
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Question 328 of 500
328. Question
The permissible maturity for underlying of Treasury Bill futures in india are_______
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Question 329 of 500
329. Question
For a 13-year cash settled interest rate futures contracts, the underlying is ______
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Question 330 of 500
330. Question
________ measures the PRICE RISK in a bond.
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Question 331 of 500
331. Question
Most consumer loans and housing loans are structured as_____
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Question 332 of 500
332. Question
The contract amount for Govt. Bond futures is______.
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Question 333 of 500
333. Question
What is the settlement method for bond derivatives?
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Question 334 of 500
334. Question
Can a member deposit Non cash collateral in exchange
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Question 335 of 500
335. Question
The regulator for the Exchange-traded interest rate derivatives is:
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Question 336 of 500
336. Question
______ is an derivatives.
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Question 337 of 500
337. Question
A stock is currently selling at Rs. 80. The put option to sell the stock at Rs. 85 costs Rs.12. What is the time value of the option?
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Question 338 of 500
338. Question
An index option is a Money Market Instrument
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Question 339 of 500
339. Question
The intrinsic value of a call option is the amount the option is_______
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Question 340 of 500
340. Question
Value-at-risk measures___________
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Question 341 of 500
341. Question
Which of these CALL options are OTM?
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Question 342 of 500
342. Question
Current Price of XYZ Stock is Rs.286. Rs. 260 strike call is quoted at Rs. 45. What is the Intrinsic Value?
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Question 343 of 500
343. Question
The value of a derivatives instrument _________
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Question 344 of 500
344. Question
If the far month futures prices are less than near month futures prices, this is known as__________
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Question 345 of 500
345. Question
If you Sell a Put option at premium of Rs 30 at the Strike Price of Rs 2000, lot is of 300 shares, then the maximum possible loss is _________
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Question 346 of 500
346. Question
A fund manager is bullish on the market. What should be his course of action?
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Question 347 of 500
347. Question
The potential returns on a long future positions are_______
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Question 348 of 500
348. Question
A call option at a strike of Rs. 176 is selling at a premium of Rs.18. At what price will it break even for buyer of the option?
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Question 349 of 500
349. Question
A buyer of Call Option?
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Question 350 of 500
350. Question
An Over The Counter option –
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Question 351 of 500
351. Question
Clients positions cannot be netted off against each other while calculating initial margin on the derivatives segment.
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Question 352 of 500
352. Question
If you buy a PUT option at premium of Rs 20 at the Strike Price of Rs 250, lot is of 2000 shares, then the maximum possible loss is___________
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Question 353 of 500
353. Question
The Money market securities have a period of more than one year – State True or False?
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Question 354 of 500
354. Question
If the base price of a security for a trading day is Rs 100 and the price range is 1%, the opening price for trading day will be_________
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Question 355 of 500
355. Question
In_____ bonds, the investor has the right to demand prepayment on specified dates before maturity
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Question 356 of 500
356. Question
The effect of reinvestment risk on a bond is _________
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Question 357 of 500
357. Question
If all the rates move in the same direction by same extent, the Term Structure of rates is called ______________
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Question 358 of 500
358. Question
Bond X and Bond Y are issued by the same issuer and have the same maturity. Bond X is priced at 98 and Bond Y at 101.50 Which of the two bonds is a better investment?
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Question 359 of 500
359. Question
Amongst the below given options, who requires a prior permission from SEBI to short sell Govt. Bond futures?
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Question 360 of 500
360. Question
The Constituent Subsidiary General Ledger(CSGL) Account can be opened by_________
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Question 361 of 500
361. Question
The role of the custodian is to settle________
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Question 362 of 500
362. Question
Which of the following is correct about the Conversion Factor?
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Question 363 of 500
363. Question
The relationship between the spot price and the future price is known as_________
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Question 364 of 500
364. Question
Identify the cost which is an added cost to the stock market traders/investor, but is not paid by them explicitly and therefore it does not appear in their contract notes?
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Question 365 of 500
365. Question
A ‘Closing buy transaction’ is a buy transaction which will have the effect of offsetting a ____________
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Question 366 of 500
366. Question
A trader has sold a ABC futures contract at 2500 and bought it back at 2700, what is the gain/loss for the trader? Lot size is 50.
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Question 367 of 500
367. Question
SCORES is _____________
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Question 368 of 500
368. Question
As per the Income Tax Act, any loss on derivatives transaction can be set-off against which income in the same year?
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Question 369 of 500
369. Question
Calculate the Intrinsic Value for the following Call option : Current price of the stock – Rs. 340. Call option of strike price Rs. 300 is quoted at Rs. 56
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Question 370 of 500
370. Question
Rho is linked to the __________
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Question 371 of 500
371. Question
If the share price of ABC share increases by Rs 5 and delta of its option is 0.5, then by how much will the option price rise?
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Question 372 of 500
372. Question
At a price level of Rs. 6300, what will be the value of one lot of ABC futures contract. Lot size is 50.
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Question 373 of 500
373. Question
Which are the two most important things to be considered while constructing an index?
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Question 374 of 500
374. Question
A buyer of Out-of-the-Money(OTM) Call option is ______________
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Question 375 of 500
375. Question
Speculator are those who wish to _________ risks whereas hedgers are those who wish to _________risks.
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Question 376 of 500
376. Question
The terms of the contract are decided by mutual agreement between the price in a futures contract.
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Question 377 of 500
377. Question
With regards to futures markets, BASIS is the __________
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Question 378 of 500
378. Question
If you are a seller of put option, you expect ________ of the underlying asset.
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Question 379 of 500
379. Question
The Unique Client Code, which is allotted by the broker, is linked to the ___________
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Question 380 of 500
380. Question
Mr. Ganesh thinks that the markets will go down, so he sell 10 lots of index futures at 3500. His predictions come true and the index falls and he buys back the futures contract at 3410. What is the profit he has made if one lot of index is of 50.
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Question 381 of 500
381. Question
A hedged portfolio will give higher returns than unhedged portfolio at all times.
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Question 382 of 500
382. Question
Initial margin to be paid in derivatives is set up taking into account the volatility of the underlying market. Generally _______
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Question 383 of 500
383. Question
The risk that cannot be controlled by diversification of portfolio is _________.
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Question 384 of 500
384. Question
________ is the ratio of change in option premium for a unit change in volatility.
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Question 385 of 500
385. Question
A trader sells a futures contract and the price rises. The trader will ___________
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Question 386 of 500
386. Question
A Forward Contract ______
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Question 387 of 500
387. Question
The Intrinsic Value is zero for out-of-the money option but always positive for the in-the-money.
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Question 388 of 500
388. Question
Shruti wants to buy a certain quantity of a share at a specified price or better. She will place a _________
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Question 389 of 500
389. Question
A put option gives the buyer a right to sell how much of the underlying to the writer of the option?
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Question 390 of 500
390. Question
What is Tick size?
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Question 391 of 500
391. Question
Mr. Subu has buy position in a stock, he can cover his long position in the stock by selling______
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Question 392 of 500
392. Question
A person has bought an option so cannot lose more than the option premium paid.
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Question 393 of 500
393. Question
For USDINR Currency Futures, previous day settlement price is 56 and Today’s settlement price is 55.50. Bunty buys 20 contracts forward from previous day. What is the the MTM settlement?
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Question 394 of 500
394. Question
Initial margin requirements are based on the _____ value at risk over a one-day time horizon
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Question 395 of 500
395. Question
Daily settlement price for mark to market settlement of futures contracts shall be based on the last 30 minutes volume weighted average price of such contract across Exchange.
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Question 396 of 500
396. Question
A member has two clients C1 and C2. C1 has purchased 800 contracts and C2 has 900 contracts in August XYZ futures series. What is the outstanding liability of the member towards clearing corporation in number of contracts?
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Question 397 of 500
397. Question
A Call option is said to be In the money when ______ whereas a Put option is said to be In the money when_____________
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Question 398 of 500
398. Question
An active trader in currency options market wants to execute his view on change in volatility over a period of time and wants to be insulated from changes in other factors impacting option pricing. What option strategy is he likely to use?
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Question 399 of 500
399. Question
Formula for computation of Option premium is ________
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Question 400 of 500
400. Question
Where all other factors affecting an option’s price remain same, the time value portion of an option’s premium will decrease with the passage of time. This is known as____________
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Question 401 of 500
401. Question
The Breakeven point (BEP) for a short call position will also be equal to _____________
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Question 402 of 500
402. Question
If you are a seller in the American option or short on American option you____________
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Question 403 of 500
403. Question
The five key determinants of a currency option’s price other than the currency price and the strike price is/are ____________
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Question 404 of 500
404. Question
What are the basic accounting heads to be maintained by any market participant for maintaining currency futures accounts?
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Question 405 of 500
405. Question
The maximum net NPA% which an AD Category 1 bank can have for it to became a Trading and Clearing member of any recognized currency futures exchange is __________
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Question 406 of 500
406. Question
What is the process of Actual Pay-in/Pay-out of Mark to Market margin or profit/loss on cancelled or on maturity of futures contract called?
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Question 407 of 500
407. Question
Due to various risks involved in derivatives market, participants who wish to trade in derivatives products are advised by their broker to carefully read the document, given to them at the time of signing the agreement. The document is known as ___________
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Question 408 of 500
408. Question
If the difference between long term rates and short term rates falls or narrows than the term structure of rates is called
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Question 409 of 500
409. Question
The value of derivatives in the balance sheet is its ‘fair value’, which is its___________
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Question 410 of 500
410. Question
Basis Risk’ refers to the differential price changes in___________
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Question 411 of 500
411. Question
Mr A has purchased a par bond for a total sum of Rs 10 lakhs. Later the Yield to Maturity(YTM) falls by one basis point(0.01%). The modified duration is 5.80. Calculate the market value of Mr. A invesments after the change in YTM.
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Question 412 of 500
412. Question
An action which may result in either profit or loss in future is known as ____________
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Question 413 of 500
413. Question
The contract Amount for Treasury Bills and Government Bond futures is ________and __________respectively.
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Question 414 of 500
414. Question
Initially, the exchange of good and service was made between parties through a mechanism known as the barter system.
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Question 415 of 500
415. Question
In __________ process, Central banks issue paper currency and hold equivalent amount of Gold in their reserve. The value of each currency against another currency is derived from Gold exchange rate.
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Question 416 of 500
416. Question
CAD and CHF stand for ____________
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Question 417 of 500
417. Question
The US Dollar is by far the most widely traded currency worldwide and is also known as__________
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Question 418 of 500
418. Question
Use of USD as a vehicle currency greatly _____ the number of exchange rates that must be dealt with in a multilateral system.
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Question 419 of 500
419. Question
In a system of 100 currencies with no vehicle currencies, potentially there would be _______ currency pair or exchange rates.
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Question 420 of 500
420. Question
Every trade in the FX market is a currency pair where one currency is bought with or sold for another currency. Therefore the two currencies are called___________
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Question 421 of 500
421. Question
________is the market between Banks where dealers quote prices at the same time for both buying and selling the currency.
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Question 422 of 500
422. Question
______ is a product whose value cannot be derived from its own value but is dependent on the value of some another product.
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Question 423 of 500
423. Question
______are customized OTC contracts between two parties, where settlement takes place on a specific date in the future at today’s pre-agreed price.
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Question 424 of 500
424. Question
In the case of a futures contract, the buyers and sellers do not enter into an agreement with one another rather both of them enter into an agreement with the exchange. This in turn eliminates the couterparty risk faced in forward.
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Question 425 of 500
425. Question
Swaps are agreements between two parties to exchange cash flows in the futures according to a prearranged formula.
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Question 426 of 500
426. Question
The value of a Derivatives contract are derived from its underlying asset but after a certain date they become completely worthless, hence it must be utilized within a given time period. This date is known as _________
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Question 427 of 500
427. Question
Assume you buy a USDINR contract at Rs 74.50, one tick move on this contract will translate to __________depending on the direction of market movement.
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Question 428 of 500
428. Question
In absence of interest rate parity, arbitrage opportunity_________
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Question 429 of 500
429. Question
Suppose the interest rate in india is 10% p.a. and in the USA is 2% pa. The current USDINR spot rate is Rs 90. What is the likely 6-month USD INR futures price?
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Question 430 of 500
430. Question
If Domestic currency depreciates against the foreign currency the exposure would result in _____________
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Question 431 of 500
431. Question
Speculators are those market participants who ______________
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Question 432 of 500
432. Question
When an HNI in india is keen to invest in gold via ETF he is faced with________
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Question 433 of 500
433. Question
The objective of hedgers is to reduce the volatility in uncertain future cash flows by locking in the future currency rates.
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Question 434 of 500
434. Question
The Daily settlement price is _________
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Question 435 of 500
435. Question
The Final settlement price is the RBI reference rate.
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Question 436 of 500
436. Question
TWS stands for __________
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Question 437 of 500
437. Question
A trader has a view that the INR may appreciate in next 6 months from current level of 66 to 64. To execute the view, he shorts 100 contracts at a price of 67.5. As expected INR appreciated. At the expiry of the contract, the settelement price was 64.5. How much profit/loss did the trader make on his transaction?
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Question 438 of 500
438. Question
What will be the Delta for far Out-of-the-money option?
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Question 439 of 500
439. Question
At price level of 6900, what will be the value of one lot of ABC futures contract? Lot size is 50
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Question 440 of 500
440. Question
Trader A wants to sell 20 contracts of August series at Rs 4500 and Trader B wants to sell 17 contract 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 by the broker?
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Question 441 of 500
441. Question
Mr. Sunil places a stop loss sell order on ABC stock with a trigger price of Rs. 450. The current market price of ABC stock is Rs 470. The order will be released for execution________.
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Question 442 of 500
442. Question
In case of Bonus shares, the new option strike price is arrived at by _________the old strike price by the adjustment factor.
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Question 443 of 500
443. Question
Mr. Hitesh is a trading member. One of his clients has purchased 12 contracts of March series index futures and another clients has sold 10 contracts of March series index futures. The exposure of Mr. Hitesh as trading member is ___________
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Question 444 of 500
444. Question
A person sells a put option of strike price 265, market lot 1000, at a premium of Rs 40, the maximum profit he can make is _________
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Question 445 of 500
445. Question
When a person sells a put option, he has a ______
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Question 446 of 500
446. Question
Rho is _______
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Question 447 of 500
447. Question
Operational risks include losses due to_____________
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Question 448 of 500
448. Question
Underlying assets can be categorized in the following categories
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Question 449 of 500
449. Question
Impact cost is low when
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Question 450 of 500
450. Question
In ______ method of calculation, each stock is given weight according to the market value of the company. The higher the market capitalization, the higher is its weight in the index.
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Question 451 of 500
451. Question
ABC company is having 500000 shares outstanding and the current share price is Rs 120 per shares. The Market Value of the Company will be____________
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Question 452 of 500
452. Question
Diversification helps in reducing the risk of the portfolio under an uncertain market scenario. Therefore, a portfolio of 50-100 stocks will give a sharp reduction in risk than a portfolio of 30 stocks.
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Question 453 of 500
453. Question
Some of the few popular indices in india are___________
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Question 454 of 500
454. Question
Matching the following with their appropriate meaning
1. Index Maintenance i. Choosing right Index stocks and deciding the calculation
2. Index Construction ii.Replacing/Changing the composition of Index
3. Index Revision iii. Adjusting the index for Corporate actionsCorrectIncorrect -
Question 455 of 500
455. Question
Futures contracts can be differentiated from a Forward contract on the basis of _________
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Question 456 of 500
456. Question
The Option premium is affected by the price movements in the underlying instrument. Therefore if the price of the underlying asset goes up the __________
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Question 457 of 500
457. Question
The term Delta positive means that the value of the contract increases as the share price falls whereas if Delta is negative it means that the value of the contract decreasesas the share price rises.
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Question 458 of 500
458. Question
The sensitivities in the market can be tracked by _______ represented by Delta, Gamma, Theta,Vega and Rho.
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Question 459 of 500
459. Question
High-interest rates will result in a decrease in the value of a call option and an increase in the value of a put option.
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Question 460 of 500
460. Question
Suppose an investor buys a stock in the cash market at Rs. 1590 and also sells a call option with a strike price of 1600, thereby earning Rs. 10 as a premium. If the stock price moves below the 1590 level he loses in the cash market but gets to keep the premium as income. This is an example of _______
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Question 461 of 500
461. Question
Investor, long in the cash market, always runs the risk of a fall in price and thereby reduction of portfolio value and MTM losses. Therefore he can either sell his entire portfolio or short futures to hedge his position. Which strategy would give him an edge in the above problem.
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Question 462 of 500
462. Question
A trader thinks that the price of the underlying asset would not move much/remain stable. So, he sells a Call and a Put option of same strike so that he can profit from the premiums. Which strategy is the trader using here?
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Question 463 of 500
463. Question
In the cash market, the price of a stock is 6100 and a 6200 strike call is available at 150 and 6000 put is trading at a premium of 140. If on expiry the spot price falls to Rs 5700
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Question 464 of 500
464. Question
Suppose a stock is trading at Rs 6000 and premiums for ATM Call and Put options are 250 and 135 resprctively. If a person buys both a call and a put at these prices, then his maximum loss will be_________
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Question 465 of 500
465. Question
The Stop-loss order which gets activated when the trigger price is reached/crossed and enters the market as a market order or as a limit order, as defined at the time of placing this stop-loss order.
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Question 466 of 500
466. Question
The total traded value is the total no. of contracts on which business took place during the day whereas the total traded volume is the total monetary value of the business which took place on the contract during the day.
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Question 467 of 500
467. Question
In the trading system, trading members are allowed to enter orders with various conditions attached which include
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Question 468 of 500
468. Question
For the unexpired futures contracts which are not traded during the last half an hour of a day, the theoretical daily settlement price is computed as F = S*ert.
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Question 469 of 500
469. Question
Non-allowable assets include__________
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Question 470 of 500
470. Question
Reports that a derivatives segment of a stock Exchange has to provide to SEBI are_______
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Question 471 of 500
471. Question
The Derivatives Exchange/segment should have a separate governing council and representation of trading/clearing members shall be limited to maximum of 40% of the total members of the governing council.
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Question 472 of 500
472. Question
Derivatives” is defined as a security derived from a debt instrument, share, loan whether secured or unsecured, risk instrument or contract for differences or derived from any other form of security.
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Question 473 of 500
473. Question
When a forward contract is used for hedging, the premium/discount should be amortized___________
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Question 474 of 500
474. Question
The number of futures contracts not settled
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Question 475 of 500
475. Question
The seller/writer of the option is required to pay the initial margin at the time of entering into the option contract. Such amount is shown in the balance sheet as__________
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Question 476 of 500
476. Question
The function of a financial institution is ____________
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Question 477 of 500
477. Question
Conduct of ongoing due diligence and scrutiny means________
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Question 478 of 500
478. Question
SEBI has a Centralized Grievance Management system with trcking mechanism to know the latest updates and time taken for resolution. This web-based complaints redressal system is called____________
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Question 479 of 500
479. Question
Which of the following specific parameters are related to the overall client due Diligence Process
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Question 480 of 500
480. Question
Arbitration is a quasi-judicial process of settlement of disputes between Trading Members, Investors, Clearing Members and also between Investor and Issuers Companies.
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Question 481 of 500
481. Question
If you sell option with a strike of Rs 245 at a premium of Rs 40, how much is the maximum gain that you may have on the expiry of this position?
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Question 482 of 500
482. Question
On the derivatives exchanges, all the orders entered on the Trading system are at prices exclusive of brokerage.
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Question 483 of 500
483. Question
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 Rs 1000 on this long position in XYZ. What should the trader do?
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Question 484 of 500
484. Question
You sold a put option on a share. The strike price of the put was Rs 245 and you received a premium of Rs 49 from the option buyer. Theorectically what can be the maximum loss on this position?
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Question 485 of 500
485. Question
Current price of XYZ stock is Rs 286. Rs 260 strike call is quoted at Rs 45. What is the instrinsic value?
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Question 486 of 500
486. Question
A European call option gives the buyer the right but not the obligation to buy from the seller an underlying at the prevailing market price ‘on or before’ the expiry date.
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Question 487 of 500
487. Question
An option with a delta of 0.5 will increase in value approximately by how much if the underlying share price increases by Rs 2?
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Question 488 of 500
488. Question
In which option is the strike price better than the market price
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Question 489 of 500
489. Question
Mr. X purchases 100 put options on stock S at Rs 30 with a strike price of Rs 280. If on the exercise date, the stock price reaches Rs 350, ignoring transaction cost, Mr. X will choose__________
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Question 490 of 500
490. Question
Three call series of XYZ stock-January, February and March are quoted. Which will have the lowest option premium?
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Question 491 of 500
491. Question
Client A has purchased 10 contract of the December series and sold 7 contracts of the January series of the NSE Nifty futures. How many lots will get categorized as regular open positions?
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Question 492 of 500
492. Question
Selling short a stock means ___________
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Question 493 of 500
493. Question
On the derivtives exchange, a trading cum clearing member has a client who has purchsed and sold 600 and 350 contracts respectively in the August series of PQR futures (contract multiplier 50). The trading cum clearing member has purchased and sold 300 and 850 contracts respectively on his own account in the same August series of PQR futures. What is the outstanding liability of the member towards clearing corporation in the number of contracts?
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Question 494 of 500
494. Question
In the stock markets, Beta is a statistical measure of the sensitivity of the movement of a share price to the movement of the _______
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Question 495 of 500
495. Question
You sold one Zee Ent Ltd. Futures contract at Rs. 260 and the lot size is 1000. what is your profit or loss, if you purchase the contarct back at Rs. 251?
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Question 496 of 500
496. Question
If you have sold a ITC futures contract(contract multiplier 500)at 300 and bought it back at 328, what is your gain/loss?
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Question 497 of 500
497. Question
In the Option segment, if you sell a CALL at a premium of Rs 45 at the strike price of Rs 400, lot is of 200 shares, then the maximum possible profit is_______
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Question 498 of 500
498. Question
Suppose you are a trading member and have bought 14 contracts of April series index futures and sold 7 contracts of April series index futures on your own account. What will be your exposure on these transactions?
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Question 499 of 500
499. Question
What is the intrinsic value of a call option if the spot price is Rs 300 and the strike price is Rs 250?
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Question 500 of 500
500. Question
The beta of a stock is 0.7 and you have a buy position of Rs 300000 in it. Which of the below options will give you a complete hedge?
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