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Question 1 of 100
1. Question
1 point(s)Can Professional Clearing members act only on behalf of institutional clients ?
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Question 2 of 100
2. Question
1 point(s)Trading members shall maintain a higher level of Book networth than the clearing members – State True or False ?
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Question 3 of 100
3. Question
1 point(s)The type of volatility which is derived from the option price and indicates the volatility expected over the life of the option is termed as ________ .
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Question 4 of 100
4. Question
1 point(s)Which of the following is a hedged position?
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Question 5 of 100
5. Question
1 point(s)Put-call parity refers to the relationship between:________
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Question 6 of 100
6. Question
1 point(s)Which of the following situations indicates a bullish trend in the underlying?
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Question 7 of 100
7. Question
1 point(s)Investor Mr. X wants to sell 11 contracts of Feb series at Rs.6300 & investor Mr. Y wants to sell 13 contracts of March series at Rs.6450. 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(sum of initial margin of X and Y) by the broker?CorrectIncorrect -
Question 8 of 100
8. Question
1 point(s)A trader has taken a short position of one contract in Sept ABC futures (contract multiplier 50) at a price of Rs.1800. When he closed this position after a few days, he realized that he has made a profit a Rs.5000. Which of the following closing actions would have enabled him to generate the profit?( Please ignore brokerage costs) .
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Question 9 of 100
9. Question
1 point(s)The option which gives the holder a right to buy the underlying asset on or before a particular date for a certain price, is called as________
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Question 10 of 100
10. Question
1 point(s)A call option gives the holder a right to buy how much of the underlying from the writer of the option?
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Question 11 of 100
11. Question
1 point(s)Which of the following is closest to the forward price of a share if cash price is Rs 425, forward contract maturity=12 months from date, market interest rate 12%
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Question 12 of 100
12. Question
1 point(s)Which of the following costs is not actually paid by the market participants but arises
due to lack of liquidity?CorrectIncorrect -
Question 13 of 100
13. Question
1 point(s)Which of the following statements about interoperability of clearing corporations is TRUE?
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Question 14 of 100
14. Question
1 point(s)Which of the following measures was introduced by SEBI to prevent brokers from allowing excessive intraday leverage to their clients?
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Question 15 of 100
15. Question
1 point(s)Profits from derivatives transactions for Indian investors are taxed as ________.
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Question 16 of 100
16. Question
1 point(s)In the KYC process, Politically Exposed Persons are termed as ________.
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Question 17 of 100
17. Question
1 point(s)Under the Anti-Money Laundering (AML) and Combating of Financial Terrorism (CFT)
regulations, suspicious transactions must be reported to. _____________.CorrectIncorrect -
Question 18 of 100
18. Question
1 point(s)Mr. Ravi purchases 10 call option on stock at Rs. 20 per call with strike price of Rs 350. If on exercise date, stock price is Rs. 310, ignoring transaction cost, Mr. Ravi will
choose. _________CorrectIncorrect -
Question 19 of 100
19. Question
1 point(s)Trading members are required to possess a higher level of Capital Adequacy (as per balane sheet) than clearing members – True or False?
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Question 20 of 100
20. Question
1 point(s)A trader sold a call option on a share of strike price Rs. 200 and received a premium of Rs. 12 from the option buyer. What can be his maximum loss on this position ?
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Question 21 of 100
21. Question
1 point(s)Securities Transaction Tax (STT) is levied on _______.
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Question 22 of 100
22. Question
1 point(s)The contract size in futures market is defined by_______
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Question 23 of 100
23. Question
1 point(s)In Options – the seller of an contract pays an upfront premium at the time of entering into the contract – State whether True or False ?
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Question 24 of 100
24. Question
1 point(s)In case of ______the gain or loss is realised on daily basis due to mark-to-market mechanism.
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Question 25 of 100
25. Question
1 point(s)A calendar spread in inde futures is treated as _________ in a far month contract when the near months contract is expired.
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Question 26 of 100
26. Question
1 point(s)The main objective of derivatives is to enable market participants to _____
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Question 27 of 100
27. Question
1 point(s)Higher the interest rate, the higher the CALL option premium – State True or False ?
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Question 28 of 100
28. Question
1 point(s)A Buyer or holder of the option is the party to the contract who has__________.
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Question 29 of 100
29. Question
1 point(s)The Trading members on the exchanges derivatives segment are not required to be registered with SEBI – State whether True or False?
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Question 30 of 100
30. Question
1 point(s)A unique principle of futures trading makes trading possible for those who do not want to make or take delivery of underlying assets. Which is that principle?
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Question 31 of 100
31. Question
1 point(s)On the National Stock Exchange, for its index futures, what would be the opening day of its April series?
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Question 32 of 100
32. Question
1 point(s)Operational risks include losses due to________
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Question 33 of 100
33. Question
1 point(s)The total number of outstanding / unsettled contracts in the market, at any point of time is known as “OPEN INTEREST” – True or False ?
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Question 34 of 100
34. Question
1 point(s)The clearing corporation may utilize the client account margins deposited with it for fulfilling the dues which a clearing member may owe to the clearing corporation for
the trades on the clearing members own account. State True or False ?CorrectIncorrect -
Question 35 of 100
35. Question
1 point(s)A clearing member has deposited eligible liquid assets of Rs.75 lacs. The exchange has minimum liquid net worth requirement of Rs. 50 lakhs. The member has not
entered into any transactions so far. What is the margin available for trading. (in lakhs)CorrectIncorrect -
Question 36 of 100
36. Question
1 point(s)is it true that an efficient cash market is required for an efficient futures market ? Yes or No ?
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Question 37 of 100
37. Question
1 point(s)If the price of a future contract increases, the mark to market margin account of the holder of the short position in that contract is credited for the gain. State whether True or False?
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Question 38 of 100
38. Question
1 point(s)The absolute amount of minimum capital adequacy requirement for derivative brokers is same as that for cash market – True or False ?
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Question 39 of 100
39. Question
1 point(s)Change in option premium for a unit change in________ is known as Rho.
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Question 40 of 100
40. Question
1 point(s)The ask price is the price at which______
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Question 41 of 100
41. Question
1 point(s)In India, futures and options on individual stocks are allowed on _______.
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Question 42 of 100
42. Question
1 point(s)Higher the price volatility, higher would be the initial margin requirement – State True or False ?
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Question 43 of 100
43. Question
1 point(s)In a derivative exchange, the net worth requirement for a clearing member is higher than that of an ‘ing (ie. a who only clears his trades).
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Question 44 of 100
44. Question
1 point(s)Money and securities deposited by clients with the trading members should be kept by them in a separate clients account – True or False ?
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Question 45 of 100
45. Question
1 point(s)All active members of the Exchange are required to make initial contribution towards Trade Guarantee Fund of the Exchange – State True or False ?
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Question 46 of 100
46. Question
1 point(s)An increase in the interest rates will lead to _______
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Question 47 of 100
47. Question
1 point(s)In a forward contract, the party that’s agrees to sell the underlying asset on a certain specified date for a certain specified price is said to have assumed. ____
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Question 48 of 100
48. Question
1 point(s)Mr. Hitesh is a trading member. One of his clients has purchased 12 contracts of March series index futures and another client as has sold 10 contracts of March series
index futures. The exposure of Mr. Hitesh as trading member is _______.CorrectIncorrect -
Question 49 of 100
49. Question
1 point(s)In case of Call options, if the market price is less than the exercise (strike) price, the option will______.
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Question 50 of 100
50. Question
1 point(s)Does the difference between exercise price of the option and spot price affects option premium ? State Yes or No.
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Question 51 of 100
51. Question
1 point(s)Ahigh initial margin level improves solvency & financial capability of the clearing corporation – True or False ?
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Question 52 of 100
52. Question
1 point(s)An American put option gives the buyer the right but not the obligations to sell to the writer an underlying asset at a specified price on or before the expiry date – State
whether True or False ?CorrectIncorrect -
Question 53 of 100
53. Question
1 point(s)State True or False – A futures contract is usually referred to by its delivery month.
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Question 54 of 100
54. Question
1 point(s)Mr. A sold a put option of strike Rs.400 on PQR stock for a premium of Rs.32. The lot size is 500. On the expiry day, PQR stock closed at Rs. 350. What is his net profit or loss?
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Question 55 of 100
55. Question
1 point(s)In an Index Futures contract, the tick size is 0.2 of an index point & the index multiple is Rs 50, then ‘a tick’ is valued at ____
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Question 56 of 100
56. Question
1 point(s)The securities which are placed by clearing members with the clearing corporation as a part of liquid assets are
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Question 57 of 100
57. Question
1 point(s)Contract month means_____
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Question 58 of 100
58. Question
1 point(s)Initial margin is calculated based on __
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Question 59 of 100
59. Question
1 point(s)Daily ‘Trading Price Limits’ define the maximum percentage by which the price of a future contract can rise above or fall below the previous days settlement price – State whether True or False ?
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Question 60 of 100
60. Question
1 point(s)For portfolio hedging by institutions and mutual funds, index based derivatives are more suitable and are much more cost effective than derivative based on individual
stocks – State True or False ?CorrectIncorrect -
Question 61 of 100
61. Question
1 point(s)A Trading cum Clearing Member is responsible to the exchange for his transactions & also for the position of his trading members under him – True or False ?
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Question 62 of 100
62. Question
1 point(s)A default by a member in the derivatives segment will be not be treated as default in the cash segments of that exchange – State True or False ?
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Question 63 of 100
63. Question
1 point(s)Does trading in derivaties become expensive due to high margins? State Yes or No.
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Question 64 of 100
64. Question
1 point(s)_______risk is the component of price risk that is unique to particular events of the company and/or industry and this risk could be reduced to a certain extent by diversifying the portfolio.
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Question 65 of 100
65. Question
1 point(s)The Clearing of trades on a stock exchange can be done by___________
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Question 66 of 100
66. Question
1 point(s)In an In the money PUT option _______
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Question 67 of 100
67. Question
1 point(s)Delta measures the expected change in the option premium for a unit change in__________.
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Question 68 of 100
68. Question
1 point(s)In an Out-of-the Money (OTM) Put option____
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Question 69 of 100
69. Question
1 point(s)Diversification is used to control Systematic Risks – True or False ?
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Question 70 of 100
70. Question
1 point(s)A trader sold on ABC Stock Futures Contract at Rs. 354 & the lot size is 900. What is the traders profit or loss if he purchases the contract back at Rs.341?
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Question 71 of 100
71. Question
1 point(s)When would a trader make a profit on a short position of September futures?
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Question 72 of 100
72. Question
1 point(s)Which of the following is not an application of indices?
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Question 73 of 100
73. Question
1 point(s)Options contracts are not symmetrical with respect to rights & obligations of the parties involved – State True or False ?
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Question 74 of 100
74. Question
1 point(s)Time value and intrinsic value of a call option are always either positive or zero- True or False ?
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Question 75 of 100
75. Question
1 point(s)The gain or loss is realized on daily basis due to mark to market mechanism in which of the following contracts?
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Question 76 of 100
76. Question
1 point(s)The market price of a share is Rs 120 and the 110 Call is quoted at Rs 24, what is the intrinsic value of this Call option ?
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Question 77 of 100
77. Question
1 point(s)The main logic behind Position limits is to_______.
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Question 78 of 100
78. Question
1 point(s)The seller of the put option gains if price of underlying asset_______
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Question 79 of 100
79. Question
1 point(s)A portfolio with 50 different stocks is twice as risky as another portfolio with 100 stocks in it – State whether True or False ?
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Question 80 of 100
80. Question
1 point(s)Mr A buys a call option with lower strike price and sells another call option with higher strike price both on the same underlying share and same expiration date, the
strategy is called ______CorrectIncorrect -
Question 81 of 100
81. Question
1 point(s)Futures trading is considered more risky than equity trading due to_______.
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Question 82 of 100
82. Question
1 point(s)Institutional investors pay higher margins than the individual investors for derivatives trading – State True or False ?
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Question 83 of 100
83. Question
1 point(s)The derivatives segment of a Stock Exchange is under the same governing council as the cash segment – State True or False ?
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Question 84 of 100
84. Question
1 point(s)You have bought a futures contract and the price drops, you will________ if you squared up the contract.
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Question 85 of 100
85. Question
1 point(s)Stock price is ________.
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Question 86 of 100
86. Question
1 point(s)A naked call option strategy means that the writer does not currently owns the underlying – State True or False ?
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Question 87 of 100
87. Question
1 point(s)Factor(s) influencing option pricing include which of the following ?
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Question 88 of 100
88. Question
1 point(s)When ordinary cash dividends are declared, put option values will decrease – State True or False ?
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Question 89 of 100
89. Question
1 point(s)A Writer of an option ________.
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Question 90 of 100
90. Question
1 point(s)The daily settlement prices of equity derivatives are decided by______
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Question 91 of 100
91. Question
1 point(s)The maximum possible loss for the option buyer is the premium paid , but the profits can be higher depending on the underlying price movement. This is true for which type of options ?
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Question 92 of 100
92. Question
1 point(s)If a Clearing members defaults, the margin paid on his own account only is allowed to be used by the clearing corporation for realizing its dues from the member. The
clients margin remain unaffected – State True or False?CorrectIncorrect -
Question 93 of 100
93. Question
1 point(s)A future contract is a very standardized contract that leaves very little (except the price) open to negotiation – State True or False ?
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Question 94 of 100
94. Question
1 point(s)Shorter the time to maturity of the call option, higher will be the time value – State whether True or False ?
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Question 95 of 100
95. Question
1 point(s)Mr. Anand asks his broker to buy certain number of contracts at the market price, this instruction is called_______
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Question 96 of 100
96. Question
1 point(s)A Client Registration form contains client’s_________
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Question 97 of 100
97. Question
1 point(s)Any person who wishes to open a Trading Account must be given the following documents by his trading member –
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Question 98 of 100
98. Question
1 point(s)The ‘ASK’ price is always ______.
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Question 99 of 100
99. Question
1 point(s)Mr. Mohan entered into a contract with Mr. Soham to buy 500 bags of Cotton at a price of Rs 800 per bag. Delivery of goods and payment of money will take place 4 months from now. Both Mr. Mohan and Mr. Soham have a right as well as an obligation under this contract. What type of contract is this?
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Question 100 of 100
100. Question
1 point(s)The process by which a futures contract is terminated by a transaction that is equal and opposite to the original transaction is called _______
CorrectIncorrect