Top 10 NISM Series VIII - Equity Derivatives Demo Questions

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Top 10 NISM Series VIII - Equity

Derivatives Demo Questions

Are you looking for NISM Series VIII - Equity


Derivatives demo questions? If yes, then you are at
the right place. Just move to the next page for
demo questions of NISM Series VIII - Equity
Derivatives Certification Exam.
Q.1. A ____________ is created by shorting a call and a
put option of same strike and same expiry.

A. Long Straddle
B. Short Straddle
C. Bullish spread
D. None of the above
Q.2. A buyer of Call Option –.

A. Has the obligation to take delivery of asset


B. Has the obligation to give delivery of asset
C. Has the right to buy the underlying asset
D. Has the right to sell the underlying asset
Q.3. A calendar spread will attract ____margin.

A. Zero
B. Higher
C. Lower
D. None of the above
Q.4. 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?

A. 100
B. 300
C. 400
D. 200
Q.5. A portfolio of Rs 25 lacs has a beta of 1.20. A complete
hedge is obtained by ______ .

A. by selling Nifty futures of Rs 25 lacs


B. by selling Nifty futures of Rs 28 lacs
C. by selling Nifty futures of Rs 30 lacs
D. by buying Nifty futures of Rs 28 lacs
Q.6. A trader buys a call and a put option of same strike
price and same expiry. This is called as _________ .

A. Butterfly
B. Short Straddle
C. Long Straddle
D. Calendar Spread
Q.7. A trader Mr. Raj wants to sell 10 contracts of June series at Rs.5200
and a trader Mr. Rahul wants to buy 5 contracts of July series at Rs. 5250.
Lot size is 50 for both these contracts. The Initial Margin is fixed at 10%.
They both have their accounts with the same broker. How much Initial
Margin is required to be collected from both these investors by the broker?

A. Rs 2,60,000
B. Rs 1,31,250
C. Rs 3,91,250
D. Rs 1,28,750
Q.8. A trader sells a lower strike price CALL option and buys a higher strike price CALL
option, both of the same scrip and same expiry date. This strategy is called _______ .

A. Bearish Spread
B. Bullish Spread
C. Long term Investment
D. Butterfly
Q.9. A Trading Member can also be a Clearing Member
– True or False ?

A. True
B. False
Q.10. All the orders entered on the Trading System of a
Derivative Exchange are at Prices exclusive of brokerage. True or
False ?

A. False
B. True
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