PRACTICE QUESTIONS-1 – 50 Ques
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Question 1 of 42
1. Question
1 point(s)In case there is a Stock Split of a company which is a part of an Index, what will its impact be on the index value?
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Question 2 of 42
2. Question
1 point(s)On final settlement, the buyer/holder of the option will recognize the favorable difference received from the seller/writer as ______ in the profit and loss account.
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Question 3 of 42
3. Question
1 point(s)Higher the strike price, the premium on call option will decrease – True or False?
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Question 4 of 42
4. Question
1 point(s)Trading is allowed in Indian equity markets in which of the following?
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Question 5 of 42
5. Question
1 point(s)Can the exercise price be more than or equal to or less than the cash spot price?
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Question 6 of 42
6. Question
1 point(s)Can one sell assets in futures market even if he does not own any such assets?
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Question 7 of 42
7. Question
1 point(s)On the derivatives futures market, if there are three series of one, two and three months open at a
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Question 8 of 42
8. Question
1 point(s)All the 50 stocks of NSE Nifty index are equally weighed while calculating the index – State True or False?
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Question 9 of 42
9. Question
1 point(s)What does a Call Option give the buyer?
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Question 10 of 42
10. Question
1 point(s)Speculators are those who take risk whereas hedgers are those who wish to reduce risk – State True or False?
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Question 11 of 42
11. Question
1 point(s)The money and securities which are deposited in a client’s account.
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Question 12 of 42
12. Question
1 point(s)A short position in a PUT option can be closed out by taking a long position in the same PUT option – True or False?
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Question 13 of 42
13. Question
1 point(s)Time Decay’ is beneficial to the.
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Question 14 of 42
14. Question
1 point(s)Identify the TRUE statement with respect to a Put option.
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Question 15 of 42
15. Question
1 point(s)Mr. Menon has bought a futures contract and the price rises. In this case, Mr. Menon will
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Question 16 of 42
16. Question
1 point(s)How is the forward contract, which is for hedging purpose, accounted for in books of accounts?
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Question 17 of 42
17. Question
1 point(s)A Derivative market helps in transferring the risk from.
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Question 18 of 42
18. Question
1 point(s)Which of these options is an example of a Calendar Spread?
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Question 19 of 42
19. Question
1 point(s)Ms. Kavita wants to ‘Sell’ on a futures market. For this, she .
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Question 20 of 42
20. Question
1 point(s)The Derivatives market helps in.
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Question 21 of 42
21. Question
1 point(s)Identify the FALSE statement with respect to Options.
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Question 22 of 42
22. Question
1 point(s)Mr. Ashu has bought 100 shares of ABC at Rs 980 per share and doesn’t want to lose more than Rs 1000. What should he do?
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Question 23 of 42
23. Question
1 point(s)Initial margin to be paid in derivatives is set up taking into account the volatility of the underlying market. Generally ___
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Question 24 of 42
24. Question
1 point(s)______ is the ratio of change in option premium for a unit change in volatility.
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Question 25 of 42
25. Question
1 point(s)In a derivatives exchange, the networth requirement for a clearing member is higher than that of a non-clearing member – State whether True or False?
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Question 26 of 42
26. Question
1 point(s)The risk that cannot be controlled by diversification of portfolio is _____ .
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Question 27 of 42
27. Question
1 point(s)Can a long position in a Put option be closed out by taking a short position in a call option with identical exercise date and exercise price?
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Question 28 of 42
28. Question
1 point(s)After the initiation of the futures contract, the price of the underlying asset has risen. In this situation, ______ .
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Question 29 of 42
29. Question
1 point(s)There are many products in the market which give high returns in a risk-free manner – True or False?
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Question 30 of 42
30. Question
1 point(s)What will be the Delta for a Far Out-of-the-money option?
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Question 31 of 42
31. Question
1 point(s)The term mark-to-market means ________.
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Question 32 of 42
32. Question
1 point(s)The margining system for index futures is based on _______ .
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Question 33 of 42
33. Question
1 point(s)To whom is a high impact cost beneficial?
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Question 34 of 42
34. Question
1 point(s)A call option gives the buyer the right to buy the underlying at market price – True or False?
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Question 35 of 42
35. Question
1 point(s)A trader buys a Jan ABC futures contract at Rs 768 (lot size 1200) and squares off at Rs 778. What is the profit/loss?
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Question 36 of 42
36. Question
1 point(s)A Professional Clearing Member of the derivatives segment ____________ .
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Question 37 of 42
37. Question
1 point(s)Theta is a measure of the sensitivity of an option price to changes in market volatility – True or False?
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Question 38 of 42
38. Question
1 point(s)Which of these complaints against a trading member can an Exchange redress?
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Question 39 of 42
39. Question
1 point(s)In India, the clearing and settlement of derivatives trades is done through:
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Question 40 of 42
40. Question
1 point(s)Delta is the change in option price given a one percentage point change in the risk-free interest rate – True or False?
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Question 41 of 42
41. Question
1 point(s)Can a Clearing Member give ‘Fixed Deposits’ as part of liquid assets to the Clearing Corporation?
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Question 42 of 42
42. Question
1 point(s)Vega measures change in delta with respect to change in price of the underlying asset – True or False?
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