REAL FEEL EXAM

Calculate the Intrinsic Value for the following Call option: Current price = Rs. 340, Strike price = Rs. 300, Call premium = Rs. 56

SCORES is:

Everest Mutual Fund had floated a new fund offer and received Rs. 500 crores from the investors. The fund manager of this fund is planning to invest this amount over the next one month in buying 25 high growth stocks. He can hedge the risk in this planned purchase of stock by executing

When there is high volatility in the stock markets, the Bid-Ask spreads will generally

If all other features are same, an American Call Option will have a higher value than that of European option. State whether True or False?

The equity shares which have been given by the clearing members to the clearing corporation as a part of liquid assets are generally NOT marked to market on a regular basis – State True or False?

In the Indian derivatives exchange, the matching of bids and offers takes place

_ gives the right to sell an asset for a certain price on or before a specified date.

Identify the CORRECT statement from the given options

As per the Income Tax Act, any loss on derivatives transaction can be set-off against which income in the same year?

Mr. Jones buys a put option with higher strike price and at the same time sells another put option with lower strike price, both on the same underlying share and same expiration date. This strategy is known as

A member has two clients M and N. M has bought 300 contracts and N has sold 250 contracts in October ABC futures series. Calculate the outstanding liability (open position) of the member towards Clearing Corporation in number of contracts?

In the books of account of the client, the balance in the Initial Margin account on the Balance Sheet date must be shown under the head

As the strike price of a put option is reduced, its intrinsic value

To confirm whether a futures transaction is for hedging or for speculation is centered on

Who decides the daily settlement price for equity derivatives contracts?

If there is a debit balance in the _ it represents anticipated loss on a futures contract.

Which of these strategy has the same pay-off profile as that of Covered Call strategy?

Value-at-risk measures the

Arbitrageurs are considered to be critical link between

The MTM (Mark-to-Market) margin is always equal to the Initial margin – True or False?

What is the lot size for contracts on individual stock futures/options?

Rho is linked to the

An investor, who is anticipating a broad stock market fall, but is not willing to sell his entire portfolio of stocks, can offset his potential losses by shorting a certain number of Index futures.

If the share price of ABC share increases by Rs 5 and the delta of its option is 0.5, then by how much will the option price rise?

Initial Margin can be paid by

Longer the time to maturity of a PUT option, higher will be its

The price of Stock P and Stock Q is Rs. 500. If Stock P is more volatile than Stock Q, the call option on _ will be priced higher.

Identify the correct statement with respect to a short position in a PUT option.

Which of these is not included in the Indian equity derivatives market?

The last Thursday is usually the last trading day of a futures series. If it’s a holiday, then which will be the last trading day?

Which tax is applicable on the transactions done on a recognised Indian stock exchange?

Option premium is the price which is paid by the

A ‘Closing buy transaction’ offsets a

Which of these is an order with a time condition?

Mr. Subu has a buy position in a stock. He can square it off by selling

For extraordinary dividends above 2% of the market value, the dividend amount is _ the strike price of options.

The relationship between the spot price and the future price is known as

Which of these is true for an ‘In-the-money’ option?

A CALL OPTION gives the buyer the

Networth requirement for a clearing member is less than that of a non-clearing member. True or False?

The DJIA is a _ index; the S&P 500 is a _ index.

Identify the CORRECT statement for ‘In-the-money’ Call Option?

A Clearing member’s liquid assets cannot entirely comprise of

A trader sold an ABC futures contract (multiplier 50) at 2500, bought it back at 2700. What is the gain/loss?

Identify the CORRECT statement:

If futures price declines but open interest rises, it indicates a

Intraday trading can be done in the case of

Everest Ltd. enters a deal to receive 7.5% and pay MIBOR on Rs. 25 crore for 3 years. This is a