Equity Derivatives- Quiz

Question 1 of 10

1. Question

1 point(s)

If you buy a PUT option at premium of Rs 20 at the Strike Price of Rs 250, lot is of 400 shares, then the maximum possible loss is ____

Rs 5000
Rs 8000
Rs 20,00,000
Unlimited

Question 2 of 10

2. Question

1 point(s)

The Indian Stock Future Markets deals in ____________.

Swaps
Equity Cash
Equity Derivative
All of the above

Question 3 of 10

3. Question

1 point(s)

You have sold one lot of JSW Steel futures for Rs 300 (lot size 2000) expecting that this share price will go down. But you also wants to protect yourself against any loss of
more than Rs 10,000. What should you do ?

Place a limit order to buy at Rs 305
Place a stop loss buy order at Rs 295
Place a stop loss buy order at Rs 305
Place a limit sell order at Rs 305

Question 4 of 10

4. 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 200 shares, then the maximum possible loss is ____

Rs 9000
Rs 20,000
Rs 80,000
Unlimited

Question 5 of 10

5. Question

1 point(s)

Option which gives buyer a right to sell the underlying asset, is called____ option

Call
Put
American
European

Question 6 of 10

6. Question

1 point(s)

Aperson sells a put option of Strike Price 265, market lot 1000, at a premium of Rs 40, the maximum profit he can make is _______.

Rs 25,000
Rs 2,65,000
Rs 40,000
Unlimited

Question 7 of 10

7. Question

1 point(s)

In the accounting system of open options as on Balance Sheet day, the “Provision for Loss on Equity Index/ stock Option Account” is shown as deduction from “Equity
Index/ stock Option Premium” which is shown under ______________.

Current Assets
Current Liabilities
Short term Debts
None of the above

Question 8 of 10

8. Question

1 point(s)

Operational risks include losses due to _______________.

Inadequate disaster planning
Too much of management control
Government policies
Income tax regulations

Question 9 of 10

9. Question

1 point(s)

A tax which is clearly mentioned in the Contract Note is _____.

Long Term Capital Gain Tax
Short Term Capital Gain Tax
Both 1 and 2
Securities Transaction Tax (STT)

Question 10 of 10

10. Question

1 point(s)

______________refers to when securities professionals making unnecessary and excessive trades in customer accounts for the sole purpose of generating commissions.