Quiz Instructions – How to Make the Most of It
To help you prepare and revise better, here are the key features available in the quiz section:
1. Question Navigation Made Easy
- Once the quiz starts, all question numbers will appear on your screen.
- Selected options are highlighted with color below each question number so you can track your choices at a glance.
2. Use the “CHECK” Button for Instant Feedback
- Want to know if your answer is right?
- Click on “CHECK” to view the correct answer along with a clear explanation to enhance your understanding.
3. Toggle Between Questions Anytime
- You’re free to move back and forth between questions.
- No need to worry about losing your progress — your selected answers will be saved automatically.
4. View the Entire Question Set at Once
- Want to review all questions and answers in one go?
- Just skip to the last question, click “Finish Quiz”, and then choose “View Questions.”
- This enables you to scroll through all questions and their answers together, making it easier to revise.
Pro Tip:
Use the quiz multiple times to test your memory, analyze explanations, and strengthen concepts!
Quiz Summary
0 of 100 Questions completed
Questions:
Information
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading…
You must sign in or sign up to start the quiz.
You must first complete the following:
Results
Results
0 of 100 Questions answered correctly
Your time:
Time has elapsed
You have reached 0 of 0 point(s), (0)
Earned Point(s): 0 of 0, (0)
0 Essay(s) Pending (Possible Point(s): 0)
Categories
- Not categorized 0%
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- 11
- 12
- 13
- 14
- 15
- 16
- 17
- 18
- 19
- 20
- 21
- 22
- 23
- 24
- 25
- 26
- 27
- 28
- 29
- 30
- 31
- 32
- 33
- 34
- 35
- 36
- 37
- 38
- 39
- 40
- 41
- 42
- 43
- 44
- 45
- 46
- 47
- 48
- 49
- 50
- 51
- 52
- 53
- 54
- 55
- 56
- 57
- 58
- 59
- 60
- 61
- 62
- 63
- 64
- 65
- 66
- 67
- 68
- 69
- 70
- 71
- 72
- 73
- 74
- 75
- 76
- 77
- 78
- 79
- 80
- 81
- 82
- 83
- 84
- 85
- 86
- 87
- 88
- 89
- 90
- 91
- 92
- 93
- 94
- 95
- 96
- 97
- 98
- 99
- 100
- Current
- Review / Skip
- Answered
- Correct
- Incorrect
-
Question 1 of 100
1. Question
1 point(s)In case of a member’s default, the Clearing Corporation cannot transfer clients positions to another member or close out all open positions of defaulting member, without prior approval from SEBI – State True or False?
CorrectIncorrect -
Question 2 of 100
2. Question
1 point(s)There are many products in the market which give high returns in risk-free manner – State whether True or False?
CorrectIncorrect -
Question 3 of 100
3. Question
1 point(s)A long or short position in a futures contract can be closed by initiating a reverse trade – State True or False?
CorrectIncorrect -
Question 4 of 100
4. Question
1 point(s)Its common to have derivatives contract without any expiration date-State whether True or False ?
CorrectIncorrect -
Question 5 of 100
5. Question
1 point(s)Fixed deposits and Bank guarantees are NOT permitted to be offered by Clearing Members to the Clearing corpn as part of liquid assets – State whether True or False?
CorrectIncorrect -
Question 6 of 100
6. Question
1 point(s)The term mark-to-market means
CorrectIncorrect -
Question 7 of 100
7. Question
1 point(s)_____ means the maximum exposures in terms of number of options and futures contracts that an investor can hold on one side of the market.
CorrectIncorrect -
Question 8 of 100
8. Question
1 point(s)The mark-to-market margin debits for stock futures are done on a daily basis but the mark-to-market margin credits are done on a weekly basis – State whether True or False ?
CorrectIncorrect -
Question 9 of 100
9. Question
1 point(s)The initial margin is always equal to the mark-to-market margin – State True or False?
CorrectIncorrect -
Question 10 of 100
10. Question
1 point(s)Mr. Arvind is very bullish on the market. How ever he feels some specific companies which he has in his portfolio will not perform well in future. What strategy should he adopt?
CorrectIncorrect -
Question 11 of 100
11. Question
1 point(s)Even if you do not own the underlying stock, you can sell the stock option for that stock – State whether True or False?
CorrectIncorrect -
Question 12 of 100
12. Question
1 point(s)Longer the time to maturity of the PUT option, higher will be the time value – State whether True or False?
CorrectIncorrect -
Question 13 of 100
13. Question
1 point(s)A trader sells a futures contract and the price rises. The trader will ______.
CorrectIncorrect -
Question 14 of 100
14. Question
1 point(s)Before you take a position in a futures contract, the Exchange calls for___to conver any loss that your position may incur.
CorrectIncorrect -
Question 15 of 100
15. Question
1 point(s)What happens to the unmatched portion of the order in an Immediate or cancel (IOC) order ?
CorrectIncorrect -
Question 16 of 100
16. Question
1 point(s)The option premium is affected by the difference in the exercise price and the spot price – State True or False ?
CorrectIncorrect -
Question 17 of 100
17. Question
1 point(s)In stock markets, Beta is a statistical measure of the sensitivity of the movement of a share price to the movement of prevailing interest rates – State True or False?
CorrectIncorrect -
Question 18 of 100
18. Question
1 point(s)When we trade in Commodities in a future exchange, it involves buying and selling______.
CorrectIncorrect -
Question 19 of 100
19. Question
1 point(s)When you sell a PUT option, you expect _____.
CorrectIncorrect -
Question 20 of 100
20. Question
1 point(s)Each investor who wishes to trade in the derivatives segment is required to satisfy minimum net worth conditions – State True or False ?
CorrectIncorrect -
Question 21 of 100
21. Question
1 point(s)What does an Call Option gives the buyer ?
CorrectIncorrect -
Question 22 of 100
22. Question
1 point(s)As the strike price goes higher, the premium on Call Options will decrease. – State True or False?
CorrectIncorrect -
Question 23 of 100
23. Question
1 point(s)If the Trading Member reaches his position limit, he will______.
CorrectIncorrect -
Question 24 of 100
24. Question
1 point(s)What is the role of speculators in the market ?
CorrectIncorrect -
Question 25 of 100
25. Question
1 point(s)Which of the following options will result in the creation of a BEAR SPREAD?
CorrectIncorrect -
Question 26 of 100
26. Question
1 point(s)Is it true that a buyer of a CALL OPTION cannot lose more than the option premium paid ?
CorrectIncorrect -
Question 27 of 100
27. Question
1 point(s)What is the difference between Spot Price and Future Price known as ?
CorrectIncorrect -
Question 28 of 100
28. Question
1 point(s)What is the intrinsic value of a call option if the spot price is Rs 300 and the strike price is Rs 250 ?
CorrectIncorrect -
Question 29 of 100
29. Question
1 point(s)Which exchange first started trading in financial futures ?
CorrectIncorrect -
Question 30 of 100
30. Question
1 point(s)You have created a Short Position on futures contract. This can be squared up by________.
CorrectIncorrect -
Question 31 of 100
31. Question
1 point(s)Writing a covered callis_________.
CorrectIncorrect -
Question 32 of 100
32. Question
1 point(s)What happens when the price of the underlying rises after a future contract is initiated?
CorrectIncorrect -
Question 33 of 100
33. Question
1 point(s)The Clearing Corporation can transfer client positions from one broker member to another broker member in the event of a default by the first broker member. No SEBI approval is required for this action – State True or False ?
CorrectIncorrect -
Question 34 of 100
34. Question
1 point(s)A writer / seller of a deep out of the money CALL option is ________.
CorrectIncorrect -
Question 35 of 100
35. Question
1 point(s)The Risk Return profile for a Future contract is symmetric while that of an Option contract is asymmetric – State True or False ?
CorrectIncorrect -
Question 36 of 100
36. Question
1 point(s)A portfolio with 200 stocks is only half as risky as another portfolio with 100 stocks – State True or False ?
CorrectIncorrect -
Question 37 of 100
37. Question
1 point(s)Mr. A is a risk averse Investor. He would prefer secure investments like fixed deposits and other debt instruments and not market oriented investments – State True or False?
CorrectIncorrect -
Question 38 of 100
38. Question
1 point(s)One can use Index Futures for hedging to eliminate or reduce the___________.
CorrectIncorrect -
Question 39 of 100
39. Question
1 point(s)________________is not an application of indices.
CorrectIncorrect -
Question 40 of 100
40. Question
1 point(s)The strategy in which an trader buys a call option of lower strike price and sells another call option with a higher strike price of the same share and same expiry date is called__________
CorrectIncorrect -
Question 41 of 100
41. Question
1 point(s)In equity scheme, the Mutual Fund can hedge its equity exposure by selling index futures – True or False?
CorrectIncorrect -
Question 42 of 100
42. Question
1 point(s)Who monitors the collection of Initial margin and allows exposure to members based on that ?
CorrectIncorrect -
Question 43 of 100
43. Question
1 point(s)Losses due to Operational risks include losses due to._________
CorrectIncorrect -
Question 44 of 100
44. Question
1 point(s)Value-at-risk is calculated____________.
CorrectIncorrect -
Question 45 of 100
45. Question
1 point(s)Trade Guarantee Fund (TGF) is maintained for –
CorrectIncorrect -
Question 46 of 100
46. Question
1 point(s)As per the recommendations of the L.C.Gupta Committee, CROSS MARGINING ( which takes into account the combined position in the cash and derivative market) is not permitted.
CorrectIncorrect -
Question 47 of 100
47. Question
1 point(s)An option buyer pays the option premium to the option seller. State True or False?
CorrectIncorrect -
Question 48 of 100
48. Question
1 point(s)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. True or False ?
CorrectIncorrect -
Question 49 of 100
49. Question
1 point(s)The spot price of Grasim Industries Ltd share is Rs 900, the call option of Strike Price Rs 850 is_________.
CorrectIncorrect -
Question 50 of 100
50. Question
1 point(s)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 shared, the maximum possible Profit is_______.
CorrectIncorrect -
Question 51 of 100
51. Question
1 point(s)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 Mr. Ganesh buys back the futures contract at 3410. What is the profit Mr. Ganesh has made if one lot of index is of 50.
CorrectIncorrect -
Question 52 of 100
52. Question
1 point(s)_________is not a derivatives market product.
CorrectIncorrect -
Question 53 of 100
53. Question
1 point(s)For which type of options is it profitable to exercise the options ?
CorrectIncorrect -
Question 54 of 100
54. Question
1 point(s)Counterparty risk can also be called as__________.
CorrectIncorrect -
Question 55 of 100
55. Question
1 point(s)To whom is a high impact cost beneficial ?
CorrectIncorrect -
Question 56 of 100
56. Question
1 point(s)A call option gives the buyer the right to buy the underlying at market price – State True or False ?
CorrectIncorrect -
Question 57 of 100
57. Question
1 point(s)When it is said that there is cash settlement of an index futures contract, it means that the contract is settled in cash with no delivery of the underlying – State whether True or False?
CorrectIncorrect -
Question 58 of 100
58. Question
1 point(s)When the margins are kept on the lower side, it will attract more players to join the derivatives market – State True or False?
CorrectIncorrect -
Question 59 of 100
59. Question
1 point(s)___________is a deal that produces profit by exploiting a price difference in a product in two different markets.
CorrectIncorrect -
Question 60 of 100
60. Question
1 point(s)How can you close a short position in a futures market?
CorrectIncorrect -
Question 61 of 100
61. Question
1 point(s)Arbitrage is basically earning a risk-free profit by simultaneous buying and selling replicating assets in two or more different markets – State True or False?
CorrectIncorrect -
Question 62 of 100
62. Question
1 point(s)An Index Option is ________.
CorrectIncorrect -
Question 63 of 100
63. Question
1 point(s)Clearing Member Mr. Prabhu focuses mainly on proprietary trading, while Clearing Member Mr. Mehta does not do any proprietary trades and does trades only for clients. If both have deposited the same amount of assets with Clearing Corporation, which of the foll statement is true?
CorrectIncorrect -
Question 64 of 100
64. Question
1 point(s)After the initiation of the futures contract, the price of the underlying asset has risen. In this situation,_______.
CorrectIncorrect -
Question 65 of 100
65. Question
1 point(s)If the price volatility of the underlying stock is high then the Put option will______.
CorrectIncorrect -
Question 66 of 100
66. Question
1 point(s)Why are margins collected in the derivative segment ?
CorrectIncorrect -
Question 67 of 100
67. Question
1 point(s)What is an Index Option ?
CorrectIncorrect -
Question 68 of 100
68. Question
1 point(s)Can a broker take any amount of exposure once he has satisfied the minimum net worth and minimum deposit with the exchange in the form of liquid assets?
CorrectIncorrect -
Question 69 of 100
69. Question
1 point(s)A person who provides two way quotes for various stocks is known as ____.
CorrectIncorrect -
Question 70 of 100
70. Question
1 point(s)A mutual fund manager is bearish on the market and wishes to reduce its exposure to equities from 50% to 40%, without selling any of his equity holdings. Can he sell index futures for it ?
CorrectIncorrect -
Question 71 of 100
71. Question
1 point(s)the derivative segment, once initial margin requirement is fixed, it cannot be changed by the exchange, during the lifetime of the futures contract – State True or False ?
CorrectIncorrect -
Question 72 of 100
72. Question
1 point(s)When a PUT option on an index is exercised, the option holder receives from the option writer ________.
CorrectIncorrect -
Question 73 of 100
73. Question
1 point(s)‘Netting’ is the process by which a future contract is terminated by a transaction that is equal and opposite to the original transaction – State True or False?
CorrectIncorrect -
Question 74 of 100
74. Question
1 point(s)What is an Index Future ?
CorrectIncorrect -
Question 75 of 100
75. Question
1 point(s)What does Beta of 1 mean ?
CorrectIncorrect -
Question 76 of 100
76. Question
1 point(s)Loss on derivative transactions can be set off against any other income during the year. In case the same cannot be set off, it can be carried forward to subsequent assessment year and set off against any other income of the subsequent year. Such losses can be carried forward for a period of_____assessment years.
CorrectIncorrect -
Question 77 of 100
77. Question
1 point(s)Which tax is applicable for equity transactions done on a recognized stock exchange?
CorrectIncorrect -
Question 78 of 100
78. Question
1 point(s)Among the following options, in which future contract, the contract cannot be used as a means to acquire the underlying asset?
CorrectIncorrect -
Question 79 of 100
79. Question
1 point(s)The daily Mark to Market gain or loss is realised________.
CorrectIncorrect -
Question 80 of 100
80. Question
1 point(s)The features of Futures are quiet similar to _______.
CorrectIncorrect -
Question 81 of 100
81. Question
1 point(s)If the far month futures prices are less than near month futures prices, this is known as ________.
CorrectIncorrect -
Question 82 of 100
82. Question
1 point(s)Cross margining between cash and derivative segments of an exchange helps reduce the overall margin level applicable to investors and traders – State True or False ?
CorrectIncorrect -
Question 83 of 100
83. Question
1 point(s)The net worth requirements of Clearing Members and Trading Members is the same for the derivatives exchange – State True or False ?
CorrectIncorrect -
Question 84 of 100
84. Question
1 point(s)When a call option on an index is exercised, the call option holder receives from the option writer an amount equal to excess of spot price over the strike price of that call option – State True or False ?
CorrectIncorrect -
Question 85 of 100
85. Question
1 point(s)Margins in the derivative segment has to be collected from all clients, including Financial Institutions and Fils – State True or False?
CorrectIncorrect -
Question 86 of 100
86. Question
1 point(s)When a new client opens a trading account with a trading member, which of the following documents have to be compulsorily given to him ?
CorrectIncorrect -
Question 87 of 100
87. Question
1 point(s)If the share price of XYZ share increases by Rs 2 and the delta of its option is 0.5, then by how much will the option price rise ?
CorrectIncorrect -
Question 88 of 100
88. Question
1 point(s)Liquid stocks in a market have low impact cost when compared to illiquid stocks – State True or False?
CorrectIncorrect -
Question 89 of 100
89. Question
1 point(s)If one does a calendar spread contract in index futures, then it attracts. _______
CorrectIncorrect -
Question 90 of 100
90. Question
1 point(s)_________ measure of the sensitivity of an option price to changes in market volatility.
CorrectIncorrect -
Question 91 of 100
91. Question
1 point(s)A stock exchange has ON LINE SURVEILLANCE capability to monitor the _______.
CorrectIncorrect -
Question 92 of 100
92. Question
1 point(s)The options which are traded on a exchange are standardised.
CorrectIncorrect -
Question 93 of 100
93. Question
1 point(s)The basic test of whether a trade done in the future market is for hedging or speculation is centered on the premise that there already exist a related commercial position which is exposed to the risk due to price fluctuations.
CorrectIncorrect -
Question 94 of 100
94. Question
1 point(s)You are long in ICICI Bank Ltd futures at price Rs 500. The prices rises to Rs 520 next day. The Mark to Market margin will be credited to your account. True or False ?
CorrectIncorrect -
Question 95 of 100
95. Question
1 point(s)If you sell a put option with strike of Rs. 375 at a premium of Rs.50, how much is the maximum gain that you may have on expiry of this position ?
CorrectIncorrect -
Question 96 of 100
96. Question
1 point(s)An option with zero intrinsic value is called_________.
CorrectIncorrect -
Question 97 of 100
97. Question
1 point(s)An exchange traded option after maturity____________.
CorrectIncorrect -
Question 98 of 100
98. Question
1 point(s)Tick size depends on —
CorrectIncorrect -
Question 99 of 100
99. Question
1 point(s)If you are a seller of put option, you expect___________.
CorrectIncorrect -
Question 100 of 100
100. Question
1 point(s)The Option which gives its holder a positive cash flow Is called a__
CorrectIncorrect
