REAL FEEL EXAM

Which of these best describes the timing for collection of Mark to Market margins?

Banks are typically the market makers in OTC currency options.

The settlement date for exchange-traded currency futures is:

Mr. Mayur sells 10 GBPINR lots @ 98.60, squares off 5 lots @ 99.80. What is the result?

What parameters does RBI consider for allowing banks to run USDINR option books?

For AD Category I bank to be a trading & clearing member on a currency futures exchange, it must satisfy:

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

If 10 units of gold was valued at INR 45,000 and the same was valued at USD 600. As per the gold standard methodology, what would be the value of one USD in terms of INR?

Of the below options, which one is true for Exchange Traded Derivatives?

Which term best describes JPY currency?

Sriniwas guarantees no losses to clients for shorting USD. What should he have done to avoid punishment?

A medium sized exporter of India is concerned about currency volatility. He enters a derivative contract with a bank willing to take on that risk for a fee. What economic function is being performed?

The currency futures price of USD is at a premium to INR. If the USDINR spot is 75 and a trader expects the spot to remain at 75 on expiry, what strategy is profitable?

How can the trading member recover the mark-to-market margin of a client if the client defaults?

The lot size of JPYINR futures contract is

Suresh sells GBPINR and buys EURINR for equivalent value. What view has he executed?

Mr. Balbir Singh invests USD 8000 at Rs 73 = Rs 584,000. After two years, portfolio value = USD 9000. If return =12%, what exchange rate did he get when converting back to INR?

Start of week: EURUSD =1.75 GBPUSD =1.90; End: EURUSD =1.7810 GBPUSD =1.88. What best describes the change?

USDINR expected to stay at 73. One-month futures premium =40 paise. What trade and profit per USD?

Selling a call option means having an obligation to buy the underlying asset. True or False?

Who decides the price for market order?

An Indian investor has invested 187,500 in US securities at a USDINR exchange rate of 75. One year later, his investment gains 10% in USD terms and he repatriates the money at an exchange rate of 66. What is the real return in INR?

A trader in currency markets believes EURUSD will move from 1.18 to 1.30 in two months. Which strategy using EURINR and USDINR futures supports this view?

A hedger has a grievance against a trading member and opts for arbitration. Within how many months is the decision expected from the arbitrator?

A trader executes: Buys USDINR, sells GBPINR (same notional). What view has the trader expressed?

In modern times, which asset class saw derivatives trading first?

A TM buys 9 lots of April USDINR futures and sells 9 lots of May. A client does the same. What are the open positions of the TM and the client?

When must a trading member identify if a position is proprietary or client-based?

Sumit buys 1 lot USDINR futures. Price moves by 100 ticks. What is the change in value?

An exporter hedges 20,000 USD by buying a September 2020 USDINR Put option at a strike price of ₹73.00 when the price was 0.47/0.49. The exporter received USD in his account on 20th September and decided to cancel the option on 20th September when the price for the same contract was 0.22/0.24. How much loss did the exporter make on cancelling the Put option if the latest RBI USDINR reference rate was ₹72.50?

In OTC spot markets, what is the default settlement mode?

TM buys 80 lots USDINR @ 74.50, sells 90 lots @ 74.60. Settlement = 74.30. What is MTM on open positions?

What governs brokers advertising in public media?

If volatility increases, will option premiums rise?

Higher-than-expected GDP growth in a developed country will:

Mr. Kohli invests ₹100,000 @ USDINR 60. Gains 18% in USD. Repatriates @ 62. What is real INR return?

Buys 1 USD from Bank A and sells to Bank B. Quote = ₹75.31/75.35. What is the currency loss?

Minimum net worth required for an entity to apply as an authorized exchange for currency futures?