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Question 1 of 100
1. Question
1 point(s)A client Mr P has bought March series contract and another client Mr Q has sold March series contract on Nifty futures. This has been done through the same broker. Will
this qualify as a calendar spread?CorrectIncorrect -
Question 2 of 100
2. Question
1 point(s)The adjustment factor for a stock which issues a Bonus in the ratio A: B is______.
CorrectIncorrect -
Question 3 of 100
3. Question
1 point(s)The spot price of a stock is Rs 200. A trader buys the Rs 195 strike price call option by paying a premium of Rs 10. On expiry the settlement price is Rs 220.
What is the net profit for the trader ?CorrectIncorrect -
Question 4 of 100
4. Question
1 point(s)The theoretical future price is considered for _____ is futures contract is not traded during the day.
CorrectIncorrect -
Question 5 of 100
5. Question
1 point(s)Delivery based settlement in single stock futures is provided by _______ .
CorrectIncorrect -
Question 6 of 100
6. Question
1 point(s)The Final Settlement Price in Options is the Closing price of such underlying security on the last trading day of the options contract – True or False.
CorrectIncorrect -
Question 7 of 100
7. Question
1 point(s)Nifty50 consists of securities having _______ market capitalisation stocks.
CorrectIncorrect -
Question 8 of 100
8. Question
1 point(s)A bull spread can be created only by_________.
CorrectIncorrect -
Question 9 of 100
9. Question
1 point(s)On expiry, the settlement price for Wipro Ltd. will be the__________.
CorrectIncorrect -
Question 10 of 100
10. Question
1 point(s)_________ is at the lowest level of hierarchy of a trading firm.
CorrectIncorrect -
Question 11 of 100
11. Question
1 point(s)Mr Mohit buy 3 Call options of strike price 200 when the spot price was 190 at a premium of Rs 16. Will he have to pay STT ?
CorrectIncorrect -
Question 12 of 100
12. Question
1 point(s)The open position of a Trading Member is arrived by__________.
CorrectIncorrect -
Question 13 of 100
13. Question
1 point(s)An investor has ICICI Bank shares in his portfolio. He wants to protect against the downslide in this stock as he thinks the market may go down. What should he do ?
CorrectIncorrect -
Question 14 of 100
14. Question
1 point(s)A spread that is designed to profit if the prices goes down is called______.
CorrectIncorrect -
Question 15 of 100
15. Question
1 point(s)Time value of an option is the difference between_______.
CorrectIncorrect -
Question 16 of 100
16. Question
1 point(s)In the F&O segment of NSE one can trade in the following derivative instruments except______.
CorrectIncorrect -
Question 17 of 100
17. Question
1 point(s)What will be the payoff if a stock future was bought at Rs 100 and sold at Rs 87 ? The lot size is 1000 shares.
CorrectIncorrect -
Question 18 of 100
18. Question
1 point(s)The price at which the underlying asset can be bought or sold on exercise of an option is called_________.
CorrectIncorrect -
Question 19 of 100
19. Question
1 point(s)All types of investors should allot some portion of their portfolio to derivative products in order to increase the portfolio return irrespective of their risk tolerance levels – state True or False?
CorrectIncorrect -
Question 20 of 100
20. Question
1 point(s)Speculator accepts the risks in search of profits – State True or False?
CorrectIncorrect -
Question 21 of 100
21. Question
1 point(s)In India, the clearing and settlement of derivatives trades would be through____.
CorrectIncorrect -
Question 22 of 100
22. Question
1 point(s)In a calendar spread transaction, the trader takes opposite position in two futures contract with_________.
CorrectIncorrect -
Question 23 of 100
23. Question
1 point(s)Excess of premium in an option over the intrinsic value is known as the time value – State True or False ?
CorrectIncorrect -
Question 24 of 100
24. Question
1 point(s)The simultaneous purchase and sale of two different tenors futures contracts in the same underlying is known as a _________.
CorrectIncorrect -
Question 25 of 100
25. Question
1 point(s)Delta is the change in option price given a one percentage point change in the risk-free interest rate – State True or False ?
CorrectIncorrect -
Question 26 of 100
26. Question
1 point(s)If the volatility of the underlying stock is decreasing, the premium of call option would___.
CorrectIncorrect -
Question 27 of 100
27. Question
1 point(s)Investors who believe that the markets will fall are known as Bulls – State True or False?
CorrectIncorrect -
Question 28 of 100
28. Question
1 point(s)Options contracts have two types of settlements: _____ premium settlement and Final settlement
CorrectIncorrect -
Question 29 of 100
29. Question
1 point(s)If the clearing / trading member fails to pay the dues, the clearing corporation can disable the clearing / trading members from trading – State True or False?
CorrectIncorrect -
Question 30 of 100
30. Question
1 point(s)Losses incurred on derivative transactions on a ‘recognized stock exchange’ can be carried forward to ___ subsequent assessment year and set off against any other non-speculative business income of the subsequent year.
CorrectIncorrect -
Question 31 of 100
31. Question
1 point(s)A Forward Contract __________.
CorrectIncorrect -
Question 32 of 100
32. Question
1 point(s)Can a Clearing Member give ‘Fixed Deposits’ as part of liquid assets to the Clearing Corporation?
CorrectIncorrect -
Question 33 of 100
33. Question
1 point(s)The option premium is adjustable against the exercise price on settlement, if the option is exercised on maturity – State True or False ?
CorrectIncorrect -
Question 34 of 100
34. Question
1 point(s)A Clearing Member has to deposit_____ to clearing corporation which forms part of the security deposit.
CorrectIncorrect -
Question 35 of 100
35. Question
1 point(s)When a seller SHORT SELLS a stock, it means__________.
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Question 36 of 100
36. Question
1 point(s)The strategy of buying a put option on a stock you are owning is known as_____.
CorrectIncorrect -
Question 37 of 100
37. Question
1 point(s)State True or False – Scarcity of underlying commodity will generally cause a rise in its futures price.
CorrectIncorrect -
Question 38 of 100
38. Question
1 point(s)At which price can a trader place a bid or offer for a scrip?
CorrectIncorrect -
Question 39 of 100
39. Question
1 point(s)A decrease in the interest rates will lead to ________.
CorrectIncorrect -
Question 40 of 100
40. Question
1 point(s)What will be the value of one lot of ABC futures contract if the price is Rs. 3200 and the contract size is 150 ?
CorrectIncorrect -
Question 41 of 100
41. Question
1 point(s)A Professional Clearing member of derivatives segment ___________.
CorrectIncorrect -
Question 42 of 100
42. Question
1 point(s)When the price of a future contract increases, the margin account _______.
CorrectIncorrect -
Question 43 of 100
43. Question
1 point(s)Theta is a measure of the sensitivity of an option price to changes in market volatility. – State True or False?
CorrectIncorrect -
Question 44 of 100
44. Question
1 point(s)Higher the strike price, the premium on call option will decrease – State True or False?
CorrectIncorrect -
Question 45 of 100
45. Question
1 point(s)You sold one ABC stock futures contract at Rs.268 and the lot size is 1,500. What is your profit (+) or loss (-), if you purchase the contract back at Rs.274?
CorrectIncorrect -
Question 46 of 100
46. Question
1 point(s)The Intrinsic Value is zero for out-of-the money options but always positive for in-the-money options – State True or False?
CorrectIncorrect -
Question 47 of 100
47. Question
1 point(s)A stock index like Nifty
CorrectIncorrect -
Question 48 of 100
48. Question
1 point(s)When a call option on an index is exercised, the option holder will receive from the option writer, cash amount equal to excess of spot price (at the time of exercise) over
the strike price of the call option – State True or False?CorrectIncorrect -
Question 49 of 100
49. Question
1 point(s)There is higher flexibility in fixing forward contract specification as compared to futures contract specifications – State True or False?
CorrectIncorrect -
Question 50 of 100
50. Question
1 point(s)What is Tick size?
CorrectIncorrect -
Question 51 of 100
51. Question
1 point(s)Functions of a Derivative Market include
CorrectIncorrect -
Question 52 of 100
52. Question
1 point(s)Trade Guarantee Fund (TGF) is maintained for:
CorrectIncorrect -
Question 53 of 100
53. Question
1 point(s)The expiry day for June series Index Futures on NSE would be__________.
CorrectIncorrect -
Question 54 of 100
54. Question
1 point(s)A call option gives its holder the right to buy ‘any quantity’ of the underlying asset from the writer of the call option at a pre-specified price – State True or False ?
CorrectIncorrect -
Question 55 of 100
55. Question
1 point(s)Institutional investors pay lower margins than the individual investors for derivatives trading – State True or False ?
CorrectIncorrect -
Question 56 of 100
56. Question
1 point(s)Generally, other things remaining the same – American options value is lower than that of European options – True or False?
CorrectIncorrect -
Question 57 of 100
57. Question
1 point(s)A short position in a PUT option can be closed out by taking a long position in a same PUT option – State True or False?
CorrectIncorrect -
Question 58 of 100
58. Question
1 point(s)The initial margin in derivatives market depends on the volatility of the underlying market. Usually____________.
CorrectIncorrect -
Question 59 of 100
59. Question
1 point(s)In normal market, a forward contract having a longer time to maturity trades at a higher price – State True or False?
CorrectIncorrect -
Question 60 of 100
60. Question
1 point(s)Put-call parity refers to the relationship between:
CorrectIncorrect -
Question 61 of 100
61. Question
1 point(s)A Trading Member on derivatives exchange does not have Clearing rights – State True or False?
CorrectIncorrect -
Question 62 of 100
62. Question
1 point(s)Exposure levels of Clearing Members are____correlated with the Liquid Assets maintained with the Clearing Corporation.
CorrectIncorrect -
Question 63 of 100
63. Question
1 point(s)Vega measures change in delta with respect to change in price of the underlying asset – State True or False?
CorrectIncorrect -
Question 64 of 100
64. Question
1 point(s)A fall in the price of Wipro stock increases the value of the Wipro call option – State True or False?
CorrectIncorrect -
Question 65 of 100
65. Question
1 point(s)In general terms, if the number of participants in a market are more, the liquidity will be low- State True or False?
CorrectIncorrect -
Question 66 of 100
66. Question
1 point(s)The holder of a long position in a PUT option will gain if the price of the underlying asset___.
CorrectIncorrect -
Question 67 of 100
67. Question
1 point(s)Which of the below statement(s) hold true for Futures Contract?
CorrectIncorrect -
Question 68 of 100
68. Question
1 point(s)Which one of these complaints against a trading member can an Exchange take up for redressal?
CorrectIncorrect -
Question 69 of 100
69. Question
1 point(s)The securities or money deposited by clients______ .
CorrectIncorrect -
Question 70 of 100
70. Question
1 point(s)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_____ .
CorrectIncorrect -
Question 71 of 100
71. Question
1 point(s)In Index futures, an open position can be settled by_______.
CorrectIncorrect -
Question 72 of 100
72. Question
1 point(s)As per news, the Government can lose a vote of confidence and this can affect the stock markets pretty badly. If you are an active trader, what is the ideal step you w take?
CorrectIncorrect -
Question 73 of 100
73. Question
1 point(s)When ordinary cash dividends are declared, Call Option values will decrease – State True or False ?
CorrectIncorrect -
Question 74 of 100
74. Question
1 point(s)When SEBI has approved the approves bye-laws of a derivative exchange, the exchange is free to introduce futures contracts on any number of stocks and it does not require to go to SEBI every time State True or False?
CorrectIncorrect -
Question 75 of 100
75. Question
1 point(s)In the derivatives market, the mark to market margin is equal to the initial margin – State True or False?
CorrectIncorrect -
Question 76 of 100
76. Question
1 point(s)On final settlement, the buyer/holder of the option will recognise the favourable difference received from the seller/writer as in the profit and loss account.
CorrectIncorrect -
Question 77 of 100
77. Question
1 point(s)Mr. A sold a put option of strike Rs.300 on ABC stock for a premium of Rs.20. The lot size is 1000. On the expiry day, ABC stock closed at Rs. 250. What is his net profit or loss?
CorrectIncorrect -
Question 78 of 100
78. Question
1 point(s)The exercise date and expiration date of an European option is _________.
CorrectIncorrect -
Question 79 of 100
79. Question
1 point(s)In Opening Buy Transaction’ the effect will be that of creating or increasing ___.
CorrectIncorrect -
Question 80 of 100
80. Question
1 point(s)What advantage does the screen based trading has over floor trading?
CorrectIncorrect -
Question 81 of 100
81. Question
1 point(s)The speculators play an important role in the futures market because –
CorrectIncorrect -
Question 82 of 100
82. Question
1 point(s)What does Value-at-risk measures?
CorrectIncorrect -
Question 83 of 100
83. Question
1 point(s)A member has two clients Rohit and Mohit. Rohit has purchased 100 contracts and Mohit has sold 300 contracts in March Tata Steel futures series. What is the outstanding liability (open Position) of the member towards Clearing Corporation in number of contracts?
CorrectIncorrect -
Question 84 of 100
84. Question
1 point(s)Are Broker-Members allowed on the Clearing Council of the Clearing Corporation of the derivatives segment ?
CorrectIncorrect -
Question 85 of 100
85. Question
1 point(s)One of the important duties of a trading member is to assess the financial soundness, genuineness and background of a new client – True or False ?
CorrectIncorrect -
Question 86 of 100
86. Question
1 point(s)Mr. Kailash has bought 200 shares of ABC Industries Ltd. at Rs.850 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. 4000 on this long position. What should the he do?
CorrectIncorrect -
Question 87 of 100
87. Question
1 point(s)Of the below mentioned options, in which option is the strike price better than the market price and therefore it is profitable to exercise the option ?
CorrectIncorrect -
Question 88 of 100
88. Question
1 point(s)What does selling short a stock means ?
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Question 89 of 100
89. Question
1 point(s)All the trades and open positions on a derivative exchange are guaranteed by the Clearing Corporation and it becomes a legal counter party.
CorrectIncorrect -
Question 90 of 100
90. Question
1 point(s)Mark-to-Market margins are collected on a _____ basis.
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Question 91 of 100
91. Question
1 point(s)STT means
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Question 92 of 100
92. Question
1 point(s)Of the below options, when will the April index future contract be introduced on NSE?
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Question 93 of 100
93. Question
1 point(s)Main objectives of Trade Guarantee Fund (TGF) are :
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Question 94 of 100
94. Question
1 point(s)A defaulting members clients positions could be transferred to _______by the Clearing Corporation.
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Question 95 of 100
95. Question
1 point(s)In India, the derivatives product can be traded by_____.
CorrectIncorrect -
Question 96 of 100
96. Question
1 point(s)Mr. Banerjee sells a put option of a higher strike price and buys a put option of a lower strike price, both on the same share and same expiration. This strategy is called _____.
CorrectIncorrect -
Question 97 of 100
97. Question
1 point(s)Generally the Future prices converge to Spot prices on expiry day – True or False?
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Question 98 of 100
98. Question
1 point(s)Beta is a measure of systematic risk of a security that cannot be avoided through diversification.
CorrectIncorrect -
Question 99 of 100
99. Question
1 point(s)You have bought a CALL of Ambuja Cements of Strike price of Rs 500 of January. To close the position, you will Sell a CALL of same strike price of January. True or False ?
CorrectIncorrect -
Question 100 of 100
100. Question
1 point(s)A long position in a PUT option can be closed by taking a short position in CALL option
CorrectIncorrect