Q1. What is a lot size for Mini NIFTY ?

[1 mark]

(a) 50

(b) 20

(c) 25

(d) 30

Q2. In India, futures contracts have an expiry period of [1 mark]

(a) One month

(b) Two months

(c) Three months

(d) All of the above

Q3. Future contract does not have Risk [1 mark]

(a) Market Risk

(b) Basis Risk

(c) Counter Party Risk

(d) All of Above

If you purchase a December call option at Rs 50 for a premium of Rs. 10. Your breakeven
Q4. is [1 mark]

(a) Rs.40

(b) Rs.50

(c) Rs.60

(d) None of the above

Q5. The lot size for NIFTY is [1 mark]

(a) 100

(b) 50

(c) 4000

(d) none of the above

Q6. Calls and Puts are types of [1 mark]

(a) Futures

(b) Options

(c) Stocks

(d) Forwards

(e)
Q7. You will , when you sell a put option [1 mark]

(a) Receive Premium

(b) Pay Premium

(c)Receive Margin

(d) None of the above

(e)
Puts give the seller the right but not the obligation to sell a given quantity of the underlying asset
at a given price on or before a future date [1 mark]

(a) False

(b) Only when you are selling an option

(c)Only in case of index options

(d) True

(e)
Number of unexpired or unclosed contracts in derivative segment is indicated by
[1 mark]

(a) Open Interest

(b) Volume

(c)Put Call Ratio

(d) Premium

(e)
Q10. Full form of SPAN [1 mark]

(a) Scripts Portfolio And Numbers

(b) Standard Portfolio Analysis

(c) Stock Performance Analysis

(d) Specially Analyzed Numbers

(e)
Q11. Which of the following does not trade in NSE's F&O segment [1 mark]

(a) Stock Options

(b) Index Futures

(c) Stock Futures

(d) Currency Options

(e)
Q12. In the Indian Derivative markets, all contracts expire on [1 mark]

(a) Last Thursday of the month

(b)Last Friday of the month

(c)Last Tuesday of the month

(d)Last day of the month

(e)
2 persons agree to exchange 300gms of gold 3 months later at RslOOO/- per gm. This is an
example of [1 mark]

(a) Call Option

(b) Put Option

(c) Future

(d) Forward

(e)
Q14. In the Indian derivative markets all trades are settled [1 mark]

(a) Delivery

(b) Cash

(c) Cash and delivery

(d) Either cash or delivery

(e)
Q15. The underlying index for S&P CNX Nifty futures will be [1 mark]

(a) Sensex

(b) S&P CNX Nifty

(c) Bank Index

(d) BSE 500

(e)
 On the last day of trading, settlement of futures contracts takes place at
[1 mark]

(a) Opening price of the underlying

(b) Closing price of the underlying

(c) Days highest price of the underlying

(d) Days lowest price of the underlying

(e)
Q17. A person who has bought index futures, can make [1 mark]

(a) Unlimited profits or loss

(b)Limited profits or loss

(c)Unlimited profits and limited loss

(d)Limited profits and unlimited loss

(e)
Q18. Stock options that trade on NSE's F&O segment are [1 mark]

(a) American Options

(b)African Options

(c)Asian Options

(d)European Options

(e)
Q19. Nifty call option can be exercised [1 mark]

(a) Only on expiry

(b)Anytime during the month

(c)Next day after expiry

(d)None of the above

(e)
American options can be exercised at any time up to the expiration date
[1 mark]

(a) True

(b)False

(c)Only in the case on Nifty Options

(d)None of the above

(e)
Q21. What is the brokerage we charge for trading in options? [1 mark]

(a) 1% of the premium subject to Rs100 per lot

(b)0.05% of Strike price plus premium x lot size

(c)1% of premium or Rs.50 per lot whichever is higher

(d)0.50% of Strike price plus premium x lot size

(e)
Q22. Futures trading commenced first on [1 mark]

(a) Chicago Board of Trade

(b)Chicago Mercantile Exchange

(c)Chicago Board Options Exchange

(d)London International Financial Futures and Options Exchange

(e)
Q23. The underlying asset for a derivative contract can be [1 mark]

(a) Equity

(b) Commodities

(c) Interest rate

(d) Any of the above

(e)
Q24. Derivatives first emerged as products [1 mark]

(a) Speculative

(b) Hedging

(c) Volatility

(d) Risky

(e)
Q25. Who are the participants in the derivatives market [1 mark]

(a) Hedgers

(b) Speculators

(c) Arbitrageurs

(d) All of the above

(e)
The first exchange traded financial derivative in India commenced with the trading of
[1 mark]

(a) Index futures

(b)Index options

(c)Stock options
 (d)Interest rate futures

(e)
Q27. OTC derivatives are considered risky because [1 mark]

(a) There is no formal margining system

(b) They do not follow any formal rules or mechanisms

(c) They are not settled on a clearing house

(d) All of the above

(e)

Q28. Which of the following is not an example of a derivative on security derivative

[1 mark]

(a) Index futures

(b) Index options

(c) Stock futures

(d) Interest rate futures

(e)
Q29. Impact cost measures the [1 mark]

(a) Volatility of the stock

(b) Liquidity of the stock

(c) Return on a stock

(d) None of above

(e)
Assume that the base value of a market capitalization weighted index were 1000 and the base
Q30. market capitalization were Rs.35000 crore. If the current market capitalization is
Rs.77,000 crore, the index is at [1 mark]

(a) 2200

(b) 2250

(c) 1200

(d) 1350

The market impact cost on a trade of Rs.3 million of the full Nifty works out to be about 0.5%.
Q31. This means that if Nifty is at 2000, a buy order will go through at roughly [1
mark]

(a) 2010

(b) 2050

(c) 2500

(d) None of the above

 (e)
Q32. Index funds are managed [1 mark]

(a) Actively

(b) Passively

(c) Family

(d) None of the above

(e)
Which of the following cannot be an underlying asset for a financial derivative contract
[1 mark]

(a) Equity index

(b) Commodities

(c) Interest rate

(d) Foreign exchange

(e)
Which of the following exchanges was the fi rst to start trading fi nancial futures
[1 mark]

(a) Chicago Board of Trade

(b) Chicago Mercantile Exchange

(c) Chicago Board Options Exchange

(d) London International Financial Futures and Options Exchange

(e)
Q35. In an options contract, the option lies with the [1 mark]

(a) Buyer

(b)Seller

(c)Both

(d)Exchange

(e)
Two persons agree to exchange 100 gms of gold three months later at Rs.400/gm. This is an
example of a [1 mark]

(a) Futures contract

(b) Forward contract

(c) Spot contract

(d) None of the above

(e)
 Spot value of Nifty is 2140. An investor buys a one month nifty 2157 call option for a premium of
Rs.7. The option is [1 mark]

(a) in the money

(b) at the money

(c) out of the money

(d) None of the above

(e)
A call option at a strike of Rs.176 is selling at a premium of Rs.18. At what price will it break
even for the buyer of the option [1 mark]

(a) Rs.196

(b) Rs.204

(c) Rs.187

(d) Rs.194

(e)
Q39. Typically option premium is [1 mark]

(a) Less than the sum of intrinsic value and time value

(b) Greater than the sum of intrinsic value and

(c) Equal to the sum of intrinsic value and time value

(d) Independent of intrinsic value and time value

(e)
A stock is currently selling at Rs.70. The call option to buy the stock at Rs.65 costs Rs.9. What is
the time value of the option [1 mark]

(a) Rs.4

(b)Rs.5

(c)Rs.3

(d)Rs.2

(e)
Spot value of S&P CNX Nifty is 2200. An investor bought a one-month S&P CNX Nifty
2220 call option for a premium of Rs.10. The options is [1 mark]

(a) In-the-money

(b) At-the-money

(c) Out-of-money

(d) None of the above

(e)
 A stock currently sells at 120. The put option to sell the stock sells at Rs.134 costs Rs.18. The
time value of the option is [1 mark]

(a) Rs.18

(b) Rs.4

(c) Rs.14

(d) Rs.12

(e)
On 15th January Mr.Arvind Sethi bought a January Nifty futures contract which cost him
Q43. Rs.240,000. Each Nifty futures contract is for delivery of 100 Nifties. On 25th January, the index
closed at 2460. How much profi t/loss did he make [1 mark]

(a) +6000

(b) -4500

(c) -3000

(d) +2500

Kantaben sold a January Nifty futures contract for Rs.240,000 on 15th January. Each Nifty
Q44. futures contract is for delivery of 100 Nifties. On 25th January, the index closed at 2450. How
much profi t/loss did she make [1 mark]

(a) -7,000

(b) -5,000

(c) +5,000

(d) +7,000

On 15th January Mr.Kajaria bought a January Nifty futures contract which cost him Rs.240,000.
Q45. Each Nifty futures contract is for delivery of 100 Nifties. On 25th January, the index closed at
2360. How much profi t/loss did he make [1 mark]

(a) +6000

(b) -4000

(c) -3000

(d) +2500

Krishna Seth sold a January Nifty futures contract for Rs.240,000 on 15th January. Each Nifty
Q46. futures contract is for delivery of 100 Nifties. On 25th January, the index closed at 2350. How
much profi t/loss did she make [1 mark]

(a) -7,000

(b) -5,000

(c) +5,000

(d) +7,000
Q47. A speculator with a bullish view on a security can [1 mark]

(a) buy stock futures

(b)buy index futures

(c)sell stock futures

(d)sell index futures

(e)
Mohan owns a thousand shares of Reliance. Around budget time, he get uncomfortable with the
Q48. price movements. Which of the following will give him the hedge he desires [1
mark]

(a) Buy 10 Reliance futures contracts

(b) Sell 10 Reliance futures contracts

(c) Buy 5 Reliance futures contracts

(d) Sell 5 Reliance futures contracts

(e)
Santosh is bullish about Company XYZ and buys ten one-month XYZ futures contracts at
Q49. Rs.2,96,000. On the last Thursday of the month, XYZ closes at Rs.271. He makes a
[1 mark]

(a) profit of Rs. 15000

(b) profit of Rs.25000

(c) loss of Rs.15000

(d) loss of Rs.25000

(e)
Rajiv is bearish about Company ABC and sells twenty one-month ABC futures contracts at
Q50. Rs.3.04,000. On the last Thursday of the month, ABC closes at Rs.134. He makes a
[1 mark]

(a) profi t of Rs. 18000

(b) profit of Rs.36000

(c) loss of Rs. 18000

(d) loss of Rs.36000

(e)
Anand is bullish about the index. Spot Nifty stands at 2200. He decides to buy one three-month
Q51. Nifty call option contract with a strike of 2260 at a premium of Rs 15 per call. Three months
later, the index closes at 2295. His payoff on the position is [1 mark]

(a) Rs.4,000

(b) Rs.9,000

(c) Rs.2,000
 (d) None of the above

(e)
Chetan is bullish about the index. Spot Nifty stands at 2200. He decides to buy one three month
Q52. Nifty call option contract with a strike of 2260 at Rs.60 a call. Three months later the index
closes at 2240. His payoff on the position is [1 mark]

(a) -7,000

(b) - 12,000

(c) -4,000

(d) -6,000

Deepak is bullish about the index. Spot Nifty stands at 2250. He decides to buy one three-month
Q53. Nifty call option contract with a strike of 2290 at Rs.20 per call. Three months later the index
closes at 2330. His payoff on the position is [1 mark]

(a) Rs.7,000

(b) Rs.2,000

(c) Rs.4,000

(d) None of the above

(e)
Satish is bullish about the index. Spot Nifty stands at 2225. He decides to buy one three-month
Q54. Nifty call option contract with a strike of 2260 at Rs.20 a call. Three months later the index
closes at 2235. His payoff on the position is [1 mark]

(a) -7,000

(b) -8,000

(c) -4,000

(d) -2,000

The best buy order for a given futures contract is the order to buy the index at the
[1 mark]

(a) Highest price

(b)Average of the highest and lowest price

(c)Lowest price

(d)None of the above

(e)
 The F&O segment of NSE provides trading facilities for the following derivative instruments
[1 mark]

(a) Index based futures

(b) Index based options

(c) Individual stock options

(d) All the above

(e)
At any given time, the F&O segment of NSE provides trading facilities for Nifty
futures contracts [1 mark]

(a) Two

(b) Three

(c) Nine

(d) None of the above

(e)
Q58. The NEAT-F&O trading system supports an [1 mark]

(a) Order driven market

(b)Price driven market

(c)Demand driven market

(d)None of the above

(e)
On the NSE's NEAT-F&O system, matching of trades takes place at the [1
mark]

(a) Active order price

(b) Passive order price

(c) Market price

(d) None of the above

(e)
On 26th January, the Nifty index stands at 2250. The value of a single index futures contract is
[1 mark]

(a) Rs.225,000

(b) Rs.250,000

(c) Rs.450,000

(d) Rs.200,000
Q61. New options contracts are introduced on the [1 mark]

(a) First trading day of the month

(b) Last Thursday of the month

(c) Last Wednesday of the month

(d) On the next trading day following the expiry of near month contract

(e)
Q62. A dealer can view [1 mark]

(a) Outstanding orders, previous trades and net position of the trading member

(b) Requests entered by him

(c) Outstanding orders, previous trades and net position entered for his branch

(d) None of the above

(e)
Q63. In futures trading, profi ts are received or losses are paid [1 mark]

(a) In the delivery month

(b) On daily settlement

(c) On the day of expiry of the contract

(d) On a weekly settlement basis

(e)
Which of the following prices is used to compute MTM of a futures contract in case it is not traded
on a given day [1 mark]

(a) Closing price of the underlying

(b) Closing price of the futures contract

(c) Theoretical price

(d) MTM is not levied in such cases

(e)
Q65. In the case of options, final exercise setdement is [1 mark]

(a) Sequential

(b) Random

(c) Automatic

(d) Voluntary

(e)
 Which of the following option contracts are compulsorily settled on exercise date [1
mark]

(a) In the money options contracts

(b)At the money options contracts

(c)Out of the money options contracts

(d)Deep out of the money options contracts

(e)
Q67. The market-wide position limit for stock futures/options is [1 mark]

(a) higher of 10% of non-promoter holding or 30 times the average traded quantity

(b) lower of 10% of non-promoter holding or 30 times the average traded quantity

(c) higher of 1% of non-promoter holding or 5% of open interest in the market

(d) lower of 1% of non-promoter holding or 5% of open interest in the market

(e)
Q68. Assignment margin is charged at [1 mark]

(a) Client level

(b) Trading member level

(c) Clearing member level

(d) Institution level

(e)
A Trading member Manojbhai took proprietary positions in a November expiry contract. He
bought 3000 trading units at 1210 and sold 2400 at 1220. The end-of-day settlement price for
November expiry contract is 1220. If the initial margin per unit for the November contract is Rs
100 per unit, then the total initial margin payable by Manojbhai would be [1 mark]

(a) Rs.60,000

(b) Rs.30,000

(c) Rs.3,00,000

(d) Rs.5,40,000

Q70. Initial margin is collected to [1 mark]

(a) Make good losses on the outstanding position

(b) Make good daily losses

(c) Safeguard against potential losses on outstanding positions

(d) None of the above

(e)
 The initial margin amount is large enough to cover a one-day loss that can be encountered on
[1 mark]

(a) 99% of the days

(b)90% of the days.

(c)95% of the days

(d)None of the above

(e)
Q72. On expiry of a derivatives contract, the settlement price is the [1 mark]

(a) Spot price of underlying asset

(b)Futures close price

(c)Spot price plus cost-of-carry

(d)None of the above

(e)
The following are the details of trading member Ratanlal's proprietary and client position:
Proprietary : he buys 600 units @ 1020 and sells 1800 units @ 1025. Client A: he buys 2000
units @ 1015 Client B: he buys 1600 units @ 1016 and sells 800 units @ 1022. The settlement
price of the day is 1023. What is MTM profi t/loss for Ratanlal [1 mark]

(a) Rs.31,800

(b) Rs.28,400

(c) Rs.26,600

(d) Rs.31,200

What is the outstanding position on which initial margin will be calculated if Mr.Madanlal buys
800 which @ 1060 and sells 400 units @1055 [1 mark]

(a) 1250 units

(b) 800 units

(c) 450 units

(d) 400 units

(e)
What will be MTM profi t/loss of Mr. Ramesh if he buys 800 @ 1040 and sells 600 @ 1045? The
settlement price of the day was 1035 [1 mark]

(a) -4000

(b) -6000

(c) +6000

(d) +2000
 Mr. Amar buys 600 units @ 1040 and sells 400 units @ 1030. The settlement price is 1030. What
is his MTM profi t/loss [1 mark]

(a) +Rs.7,200

(b) +Rs.8,000

(c) -Rs.6,000

(d) +Rs.6,000

Trading member Shantilal took proprietary purchase in a March contract. He bought 1600 units
Q77. @ 1200 and sold 1200 @1220. The end of day settlement price was 1221. What is the
outstanding position on which initial margin will be calculated? [1 mark]

(a) 2700 units

(b) 1200 units

(c) 1500 units

(d) 400 units

(e)
What is the outstanding position on which initial margin will be charged if no proprietary trading
Q78. is done and the details of client trading are: one client buys 800 units @ 1260. The second client
buys 1000 units @ 1255 and sells 1200 units @ 1260. [1 mark]

(a) 900 units

(b) 1000 units

(c) 800 units

(d) 2700 units

(e)
The May futures contract on XYZ Ltd. closed at Rs.3940 yesterday. It closes today at Rs.3898.60.
The spot closes at Rs.3800. Raju has a short position of 3000 in the May futures contract. He
Q79. sells 2000 units of May expiring put options on XYZ with a strike price of Rs.3900 for a premium
of Rs.110 per unit. What is his net obligation to/from the clearing corporation today
[1 mark]

(a) Payin of Rs.344200

(b) Payout of Rs.640000

(c) Payout of Rs.344200

(d) Payin of Rs.95800

(e)
00
On April 1, Ms.Shetty has sold 400 calls on ABC Ltd. at a strike price of Rs.200 for a premium of
Q80. Rs.20/call. On the cash market, ABC closes at Rs.240 on that day. If the call option is assigned
to her on that day, what is her net obligation on April1 [1 mark]

(a) Payin of Rs. 16000

(b) Payin of Rs.8000

 (c) Payout of Rs.8000

(d) Payout of Rs.16000

(e)
Which of the following persons are eligible to become trading members in the F&O segment
of NSE [1 mark]

(a) Individuals

(b) Registered fi rms

(c) Companies

(d) Any of the above

(e)
The dealer/broker and sales persons in the F&O segment shall be required to pass which of
the following examinations [1 mark]

(a) MBA (Finance)

(b) Chartered Accountancy

(c) Certifi ed Financial Analyst

(d) NCFM

(e)
Q83. Which of the following Acts governs trading of derivatives in India [1 mark]

(a) Securities Contracts (Regulation) Act, 1956

(b)SEBI Act, 1992

(c)Capital Issues (Control) Act, 1947

(d)Depositories Act, 1956

(e)
Q84. Mark to Market margin is collected on a [1 mark]

(a) Weekly basis

(b) Every 2 days

(c) Every 3 days

(d) Daily basis

(e)
Q85. Margins in Futures trading are to be paid by [1 mark]

(a) Only the buyer

(b) Only the seller

(c) Both the buyer and seller

(d) The clearing corporation

(e)
 The Options which can be exercised anytime between the day of purchase and the day of expiry
are defined as [1 mark]

(a) American

(b)European

(c)Indian

(d)None of the above

(e)
Q87. When should one buy futures [1 mark]

(a) When you are bearish

(b) When you are bullish

(c) When you want to take no risk

(d) None of the above

(e)
Q88. When should one sell futures [1 mark]

(a) When you are bearish

(b)When you are bullish

(c)When you want to take no risk

(d)None of the above

(e)
Q89. In a derivatives market who pays margins in options [1 mark]

(a) Buyer

(b) Seller

(c) Both buyer and seller

(d) Neither the buyer nor the seller

(e)
Q90. The Black Scholes model is used to price which instrument [1 mark]

(a) Futures

(b) Options

(c) Forwards

(d) All the above

(e)
Q91. What is brokerage for buying a future? [1 mark]

(a) 0.02%

(b) 0.05%

(c) 1%
 (d) Rs. 50 per lot

(e)
Q92. Swaps are [1 mark]

(a) Private agreement between two parties

(b) For exchange cash flow in future

(c) According & pre arrange formula of forward contracting

(d) All of the above

(e)
When a client default in making payment in respect of daily settlement, the contract is
Q93.mark] [1

(a) Not closed out

(b) waiting for sometime

(c) Closed out

(d) none of the above

(e)
When a client default in making payment then amount not paid by client is adjusted
Q94.against he [1 mark]

(a) M.T.M. Margin

(b) Assignment Margin

(c) from Broker Commission

(d) Initial Margin

(e)
Q95. In an options contract, the option lies with the [1 mark]

(a) Buyer

(b)Both

(c)Seller

(d)Exchange

(e)
A clearing member of F & 0 segment of NSEIL is required to have a networth of Rs.
crore and keep collateral security deposit of Rs lakh [1 mark]

(a) 5, 10

(b) 5, 50

(c) 3, 100

(d) 3, 50
Q97. Which of the following international exchanges does NOT trade derivatives? [1 mark]

(a) LIFFE

(b) SGX

(c) JNYSE

(d) DTB

(e)
Q98. Which of the following is true about NCFM (NSE's Certification in Financial Markets) [1 mark]

(a) NSE launched NCFM to certify personnel with a view to improve quality of intermediation.

(b) NSE launched NCFM to test practice at knowledge & skills that are
required to operate financial markets.

(c) NCFM is an online testing system.

(d) All the above

(e)
Q99. Final settlement f futures contracts Takes place at closing price of the [1 mark]

(a) Futures contract

(b) Expiring contract

(c) Underlying

(d) Near month contract

(e)
Q100. Buying put Options is Insurance [1 mark]

(a) Buying

(b) Selling

(c)Buying & Selling

(d) Selling & Buying

(e)
Q101. Buying call option is Insurance [1 mark]

(a) Buying

(b) Selling

(c) Buying & Selling

(d) Selling & Buying

(e)
Q102. Which of the following is TRUE and the S & amp; P CNX Nifty? [1 mark]

(a) Impact cost cannot be calculated

(b) Impact cost of the 50 constituent securities is very high

(c) Impact cost of the 50 constituent securities is very low

(d) All the 50 constituent securities have same impact cost

(e)
A put option gives the
Q103.specified The right but not the obligation to the Underlying asset a
price. [1 mark]

(a) Seller, Buy

(b) Seller, Sell

(c) Owner, Buy

(d) Owner, Sell

(e)
Q104. Which of the following is a customized contract [1 mark]

(a) Forward

(b) Warrants

(c)Swaptions

(d) All of the Above

(e)
With elections around the corner, Babbanseth expects the markets to go through a period of
high volatility in the coming three months and would like to take a bet on this volatility, He
Q105. decides to buy one market lot of calls and one market lot of puts at a strike of 1250. The call
trades at Rs. 48.00 and the put trades at Rs. 38.30. If three months later, the Nifty closes at
1380, his profit net of costs from the combination will be Rs [1 mark]

(a) 26000

(b) 16000

(c) 13000

(d) 4370

VAR methodology seeks to measure the amount of value that a portfolio may stand to lose
within a certain time horizon due to potential changes in [1 mark]

(a) Underlying stock volatility

(b) Underlying index volatility

(c) Underlying asset spot price

(d) Underlying exposures

(e)
 The open position of a client in futures and options on an underlying security cannot exceed
Q107. higher of % of free float market capitalization or % of open interest, whichever is
higher. [1 mark]

(a) 10, 50

(b) 10, 5

(c) 1, 50

(d) 1, 5

Q108. Margins are computed on . [1 mark]

(a) Net Position of futures contracts

(b) The portfolio of futures and option contracts

(c) Futures and option contracts on each security separately

(d) Net sell positions

(e)
The Short Option minimum margin equal to % of the value of all short index options is
levied. [1 mark]

(a) 3

(b) 5

(c)8

(d) 2

(e)
Q110. Which of the following factor affect the value of option. [1 mark]

(a) Underlying Market price

(b) Strike Price

(c) Volatility

(d) All of the above

(e)
The future market is a sum game i.e. the total number of long in any contract always
the total number of short in any contract [1 mark]

(a) Zero, Equal

(b) Equal, Zero

(c)Zero, Unequal

(d) None of the Above

(e)
 A stock can be eligible for derivatives trading, if the non-promoter holding in the company is at
least [1 mark]

(a) 50%

(b) 75%

(c) 30%

(d) 20%

Q113. Options are [1 mark]

(a) Contract that can be settled in cash or settled by delivery depending on the
choice of the seller of the options

(b) Contracts that can be settled in cash or settled by delivery depending on the
choice of the buyer of the options

(c) Contracts that can be settled in cash or settled by delivery depending on

the terms of the contract as decided by the exchange

(d) None of the above.

(e)
Q114. Clearing and settlement process comprise the following activities. [1 mark]

(a) Clearing

(b) Settlement

(c) Risk Management

(d) All of the above

(e)
Q115. The clearing mechanism essentially involves [1 mark]

(a) Working out open positions

(b) Obligation of clearing members

(c) Both A & H

(d) None of the above

(e)
Q116. Swapation can be regarded as portfolios of [1 mark]

(a) Future Contracts

(b) Option Contracts

(c) Call Options

(d) Forward Contract

(e)
 A stock is currently selling at Rs.165.The Put option at Rs. 163 stirke price costs Rs. 3 what is
the time value of money of the option? [1 mark]

(a) 3

(b) 2

(c) 1

(d) 1.5

Q118. LEAPS have a maturilty of upto [1 mark]

(a) One Year

(b) Three Years

(c) Ten Years

(d) Three Months

(e)
What is the outstanding position on which intial margin will be levide if No porprietary tradinng
Q119. is done and the details of clien trading are : One Client buys 500 Units @ 1260. The second
clien buys 900Units @1255 & Sells1000Units@1260? [1 mark]

(a) 1900 Units

(b) 2400 Units

(c) 500 Units

(d) 600 Units

(e)
Q120. A payer swapton is an option to pay and receive [1 mark]

(a) Floting , Fixed

(b) Interest , Interest

(c) Fixed , Floting

(d) Opton , Future

(e)
Q121. Forward contracts are contracts [1 mark]

(a) Multilateral

(b) Tri-lateral

(c) Future

(d) Bialetra

(e)
 You are the owner of a 5 million portfolio with a beta 1.0. You would like to insure your portfolio
against a fall in the index of magnitude higher than 10%.Spot Nifty stands at 4000.Put options
Q122. on the nifty are availableat three stirke price. Which strike will give you the insurance you
want? [1 mark]

(a) 3870

(b) 3840

(c) 3600

(d) None of the above

A receiver swapton is an option to receive and pay [1

Q123. mark]

(a) Fixed , Floating

(b) Floating , fixed

(c) Interest , Interest

(d) Option , future

The market impact cost on a trade of Rs. 4 million of the S&P CNX Nifty works out to be about
Q124. 0.06%.This means that if S&P CNX Nifty is at 4000, a sell order of that value will go through at
a price of Rs. [1 mark]

(a) 3997.6

(b) 3996

(c) 3999.5

(d) 3995.5

Ms. Shetty has sold 1000 calls on ABC Ltd. At a strike price of Rs. 885 for a premium of Rs. 227
Q125. per call on April 1. The closing price of equity shares of ABC Ltd. Is Rs.890 on that day. IF the
call option is assigned against her on that day, what is her net obligaion on April 01? [1 mark]

(a) Pay-out of Rs.22300

(b) Pay-in of Rs. 22000

(c) Pay-in of 25000

(d) Pay-out of Rs 22000

In an index fund, trading in the stocks comprising the fund, is required in response
Q126. to Doubt the answer [1 mark]

(a) Favorable company specific news

(b) Poor company specific news

(c) Mergers
(d) Government Policies
 The market impact cost on a trade of Rs. 3 million of the S&P CNX Nifty works out to be about
Q127. 0.04%. This means that if S&P CNX Nifty is at 4100, a sell order of tha value will go through
at a price of Rs. [1 mark]

(a) 4098.35

(b) 4096

(c) 4093

(d) 4099.5

Q128. The following is an example of an order with time condition [1 mark]

(a) Day Order

(b) Stop Loss

(c)Limit

(d) All of the above

(e)
What is the outstanding position on which initial margin will be levied of No properietary trading
Q129. is done and the details of the client trading are: One client buys 1000 Units @ 1260. The
second Client buys 1000 Units @ 1255 and sells 1000 Units @ 1260 ? [1 mark]

(a) 2000 Units

(b) 3000 Units

(c) 1000 Units

(d) 4000 Units

(e)
The beta of TELCO is 0.8. A person has long TELCO position of Rs. 8,00,000 coupled with a
short Nifty Position of Rs. 6,00,000. Which of the following is true? [1 mark]

(a) He is bearish on Nifty as well as on TELCO

(b) He has a complete hedge against fluctuations of Nifty

(c) He has a partial hedge against fluctuations of Nifty

(d) He is bullish on Nifty as well as on TELCO

(e)
Q131. Nifty consist of securities having market capitalizaition stocks. [1 mark]

(a) Large

(b) Small

(c)Medium

(d) Large and Small

(e)
 The beta of ICICI Bank is 1.5. A person has a long position of Rs. 4,00,000 of ICICI Bank.
Which of the following give a complete hedge? [1 mark]

(a) Sell Rs. 6,00,000 of Nifty Futures

(b) Sell Rs. 6,50,000 of Nifty Futures

(c)Sell Rs. 7,00.000 of Nifty Futures

(d) None Of the above

(e)
Q133. Future hava a payoff [1 mark]

(a) Non-Linear

(b) Linear

(c) Vertical

(d) Horizontal

(e)
Mr. A Buys a futures contract of M/s. XYZ Ltd.(Lot Size:1000) expiring on 29th Sep for a Rs.
Q134. 300. The spot price of the share is Rs. 290. Does he have to pay Securities transacton tax? [1
mark]

(a) Yes, Only if he buys more than 1 contract

(b) Yes

(c) No, Only if he sells of the contract immediately

(d) No

(e)
Ms. Shetty has sold 5000calls on ABC Ltd. At a strike price of Rs.500 for a premium of Rs. 25
Q135. per call on April 1. The closing price of Equity shares of ABC Ltd. is Rs. 505 on that day. If the
call option is assigned against on that day, What is her net obligation on April 01? [1 mark]

(a) Pay-out of 1,22,300

(b) Pay-in of 1,22,000

(c) Pay-in of 1,25,000

(d) Pay-out of 1,00,000

(e)
An Index put option at at strike of Rs. 4200 is selling at a premium of Rs. 30. At what Index
level will it break even for the buyer of the option? [1 mark]

(a) 4175

(b) 4176

(c) 4170

(d) 4162
Q137. Which of the following is the duty of the trading member? [1 mark]

(a) Giving tips to clients to buy and sell

(b) Funding losses of the clients

(c) Collection of adequate maregins from the client

(d) All of the above

(e)
Q138. The only way an investor can manage risks in the underlying cash market is by? [1 mark]

(a) Hedging in the future market

(b) Speculating in the future market

(c)Speculating in the options market

(d) All of the above

(e)
Q139. Nifty is a Index [1 mark]

(a) Well Diversified

(b) Poorly Diversified

(c)Balanced

(d) Volatlle

(e)
You have bought a stock on exchange. To eliminate the risk arising out of the stock price, you
should [1 mark]

(a) Buy Index Futures

(b) Buy Stock Futures

(c) Sell the stock futures

(d) None of the above

(e)
The spot price of ABC Ltd. Rs. 2000 and the cost of financing is 10%. Whtat is the fair price of a
one month futures contract on ABC Ltd. [1 mark]

(a) 2015

(b) 2016.75

(c) 2018.75

(d) 2019

Assume that the base value of a market capitalization weighted index were 1000 and the base
Q142. market capitalizaiton were Rs. 70,000 crore. If the current market capitalization is Rs. 1,40,000
crore, the index is at Rs. [1 mark]

(a) 2110
 (b) 2350

(c) 2250

(d) 2000

The beta of ACC is 1.5. A person has a long TELCO position of Rs. 9,00,000 coupled with a
Q143.
short nifty position of Rs. 8,00,000. which of the following is True? [1 mark]

(a) He is bearish on Nifty as well as on ACC

(b) He has complete hedge against fluctuation of Nifty

(c) He has partial hedge against fluctuations of Nifty

(d) He is bullish on Nifty as well as on ACC

Q144. Hedging with stock futures means [1 mark]

(a) Shorting Stocks

(b) Shorting Index futures

(c) Shorting Stock futures

(d) Long Index futures

Q145. is the duty of the trading member? [1 mark]

(a) Employing large numbers of research analysis

(b) Executing his own orders prior to client or

(c) Bringing risk factores to the knowledge of client

(d) None of the above

On expirty, the settlement price of a Reliance Industires Ltd future contrac is [1

Q146. mark]

(a) Opening price of Reliance Industries Ltd

(b) Closing price of Reliance Industries Ltd

(c) Closing price of Reliance Industries Ltd futures contract

(d) Last traded price of Reliance Industries Ltd

Q147. The NEAT F&O trading system-Doubt in answer [1 mark]

(a) allows spread trades

(b) allows combinatoin trades

(c) allows only a single order placement at a time

(d) (a) and (b) above

 Santosh is bearish about ABC Ltd and sells twenty one-month ABC Ltd futures contracts at Rs.
Q148. 3,96,000. On the last Thursday of the month , ABC Ltd closes at Rs. 410 He makes a
[1 mark]

(a) Profit of Rs. 14,000

(b) Loss of Rs. 14,000

(c) Profit of Rs. 28,000

(d) Loss of Rs. 28,000

(e)
You are the owner of a 4 million portfolio with a beta 1.0. You would like to insure your portfolio
against a fall in the Index of megnitude higher than 12%. SPOT Nifty stands at 4200. Put
options of Nifty are available at three strike prices, which strike will give you the insurance you
want? [1 mark]

(a) 3870

(b) 3840

(c) 3696

(d) None of the above

(e)
A stock is currently selling at Rs.50. The call option to buy the stock at Rs. 45 costs Rs.9. What
is the time value of the option? [1 mark]

(a) Rs. 9

(b) Rs. 7

(c) Rs. 4

(d) Rs. 2

(e)
Q151. An Option contract which will not be exercised on the expiry date is [1 mark]

(a) An in-the-money option

(b) a deep in-the-money option

(c) an out-of-the-money option

(d) None of the above

(e)
Q152. The theoretical futures price is based on the [1 mark]

(a) Strike Price

(b) Underlying spot price

(c) the price at which a futures contract trades in the market

(d) the price set by the exchange

(e)
Q153. Stock option on HDFC Bank Ltd. Can be exercised [1 mark]

(a) any time on or before maturity

(b) Upon maturity

(c) any time upto maturity

(d) on a date pre-specified by the trading member

(e)
Ms. Shetty has sold 1400 calls on HLL at a strike price of Rs. 297 for a premium of Rs.11 per
Q154. call on April 1. The closing price of equity shares of HLL is Rs. 300 on that day. If the call option
is assigned against her on that day, what is her net obligation on April 1. [1 mark]

(a) Pay-out of Rs. 12,300

(b) Pay-In of Rs.12,000

(c) Pay-in of Rs.11,000

(d) Pay-out of Rs 11,200

(e)
Q155. is allowed to clear trades of themselves but not of others. [1 mark]

(a) Trading Member-Clearing member

(b) Trading member are not allowed to clear their own trades

(c) professional clearing member

(d) self clearing member

(e)
Q156. Index funds use index futures to reduce [1 mark]

(a) Tracking error

(b) expenses

(c)time to invest in the markets

(d) All of the above

(e)
The beta of ACC is 0.5. A person has a long TELCO position of Rs. 9,00,000 coupled with a
short nifty position of Rs. 5,00,000. Which of the following is TRUE? [1 mark]

(a) He is bearish on Nifty as well as on ACC

(b) He has a complete hedge against fluctuations of Nifty

(c) He has overhedged against fluctuations of Nifty

(d) He is bullish on Nifty as well as on ACC

(e)
What is the outstanding position on which initial margin will be levied if no proprietary trading is
Q158. done and the details of client trading are: One client buys 2000 Units @1260. The second client
buys 2000 units @ 1255 and sells 1000 units @ 1260 ? [1 mark]

(a) 6000 Units

 (b) 5000 Units

(c) 3000 Units

(d) None of the above

In the F&O segment of NSEIL, obligaitons of client's positions are calculated on a

Q159. basis. [1 mark]

(a) Cumulative

(b) Gross

(c) net

(d) portfolio

Q160. Weekly options trading commenced on NSE in [1 mark]

(a) NSE does not trade in weekly options

(b) 02-Jun-05

(c) 04-Jul-05

(d) 04-Jun-05

A stock Currently selling at Rs. 70. The put option to sell the stock at Rs. 75 costs Rs. 12. What
Q161.
is the time value of the option? [1 mark]

(a) Rs. 7

(b) Rs. 5

(c) Rs. 2

(d) Rs. 4

Q162. is a form of basket options. [1 mark]

(a) Equity Index Options

(b) Equity Index Futures

(c) Swaptions

(d) Warrants

An opton to buy or sell a swap, that becomes operative at the expiry of the option, is called a
Q163. [1 mark]

(a) Swaption

(b) Futures

(c) Basket Option

 (d) Warrants

(e)
Q164. Derivatives can be used for which of the following? [1 mark]

(a) Hedging

(b) Arbitrage

(c) Speculation

(d) All of the above

(e)
To be eligible for options trading, the market wide position limit in the stock should not be
Q165.less than Rs. [1 mark]

(a) 250 Crore

(b) 100 Crore

(c) 50 Crore

(d) 500 Crore

(e)

Q166.forIndaily
case a Future Contract is not traded in a day, which of the following prices is reckoned
mark to market settlement? [1 mark]

(a) Closing price of the last traded day

(b) Theoritical Price

(c) Closing price of the future contract

(d) Closing price of the underlying

(e)
You are the owner of a 2 million portfolio with a beta 1.0. You would like to insure your portfolio
agains a fall in the index of magnitude higher than 15%. Spot Nifty stands at 2200. Put options
on the nifty are available at three strike prices. Which strike will give you the insurance you
want? [1 mark]

(a) 1870

(b) 1840

(c) 1970

(d) None of the above

(e)
The maximum brokerage chargeable by a trading member in relation to trades effected in the
Q168. contracts admitted to dealing on the F&O segment of NSEIL is fixed at of
the contract value, exclusive of statutory levies. [1 mark]

(a) 1.50%

(b) 2.50%

(c) 0.75%
 (d) 3%

Ms. Shetty has sold 600 calls on Dr. Reddy's LAB at a strike price of Rs. 992 for a premium of
Rs. 25 per call on April 1,2002. The closing price of the equity shares of DR. Reddy LAB is Rs.
Q169. 994 on that day, if the call option is assigned against her on that day, what is her net obligation
on April 01, 2002? [1 mark]

(a) Pay-out of Rs. 18,300

(b) Pay-in of Rs. 18,300

(c) Pay-in of Rs. 13,800

(d) Pay-out of 13,800

Daily Market to Market settlement of futures takes place on basis. [1

Q170. mark]

(a) T+0

(b) T+3

(c) T+5

(d) T+1

Q171. What is displayed in the NEAT Trading System Ticker Screen? [1 mark]

(a) The electronic display that continuously shows only the stock symbol, volume
and price at which each successive trade occurs

(b) The electronic display that continuously shows only the price at which each successive
trade occures

(c) The electornic display that continuously shows only the stock symbol and volume at
each successive trade occurs

(d) None of the above

Each user of the trading member in F&O segment of NSEIL is assigned a unique ID [1
Q172. mark]

(a) User

(b) Trading member

(c) Branch

(d) Exchange

order allows the user to execute a contract as soon as it is entered into the
Q173. system, failing which the order is immediately cancelled from the system [1 mark]

(a) GTD
 (b) IOC

(c)Limit

(d) GTC

(e)
Q174. Which of the following statement is true [1 mark]

(a) Basket trading is illegal in India

(b) NSE does not allow basket trading in the F&O Segment

(c) Basket trading has been discontinued in the F&O Segment

(d) F&O Segment has a Basket trading facility

(e)
Immediate or cancel is an order which will automatically
Q175.NSEIL. in F&O segment of
[1 mark]

(a) be matched because it being a preferential order

(b) be cancelled if it is not matched immediately and in its entirety

(c) get stored in the system for matching, if not executed immediately

(d) cancel the unmatched portion of the order quantity

(e)
Q176. Futures trading first emerged in the exchanges located in . [1 mark]

(a) London

(b) UP

(c) Chicago

(d) annual requirements of copper

(e)
Q177. A market index is very important for its use . [1 mark]

(a) as a barometer for market behavior

(b) as a benchmark of portfolio performance

(c) in portfolio management

(d) All of the above

(e)
Q178. An 'authorised person' in the Futures & Options segment is . [1 mark]

(a) any person who is acting in any capacity on behalf of the trading member
or a participant for

(b) a person authorised by the exchange as an approved user of a trading

(c) an approved user of a participant

(d) All of the above

 (e)
NSCCL's on-line position monitoring system monitors open position of on a real
time basis. [1 mark]

(a) clearing member only

(b) trading member only

(c) clearing member and trading member

(d) dealer only

(e)
Q180. The option price is the . [1 mark]

(a) price paid by the buyer of the option to the seller of the option

(b) price at which an option trades in the market

(c) sum of intrinsic value plus time value of an option

(d) All of the above

(e)
Q181. Which of the following are derivatives? [1 mark]

(a) Options

(b) Futures

(c) Forward Rate Agreements

(d) All of the above

(e)
Q182. Initial margin is collected to . [1 mark]

(a) make good daily losses

(b) square-off a position on the expiry of the contract

(c) safeguard against potential losses on out-standing positions

(d) provide for losses that have already occurred

(e)
Q183. Transaction tax is payable by the of the derivative instrument [1 mark]

(a) buyer

(b) designer

(c) seller

(d) originator

(e)
Q184. The intrinsic value of a call option is the amount the option is . [1 mark]

(a) in-the-money

(b) at-the-money
 (c)out-of-the-money

(d) above-the-money

(e)
Q185. The beta of Nifty is . [1 mark]

(a) 1.7

(b) 1

(c) 0

(d) (-)1

Q186. A stock broker is allowed to buy, sell or deal in securities . [1 mark]

(a) only on being admitted as a member of a stock exchange

(b) on submission of document with SEBI for registration

(c) on submission of document with stock exchange for admission

(d) only on having a certificate of registration granted by SEBI

(e)
The market impact cost on a trade of Rs. 3 million of the S&P CNX Nifty works out to be about
Q187. 0.05%. This means that if S&P CNX Nifty is at 2000, a sell order of that value will go through
at a price of Rs. . [1 mark]

(a) 1999

(b) 1995

(c) 1,999.50

(d) 1,995.50

Q188. ETFs can be . [1 mark]

(a) bought and sold on an exchange like shares

(b) bought on an exchange but sold only directly to the mutual fund

(c)bought and sold only directly with a mutual fund

(d) None of the above

(e)
Ms. Shetty has sold 300 calls on WIPRO at a strike price of Rs.1503 for a premium of Rs.28 per
call on April 1, 2002. The closing price of equity shares of WIPRO is Rs. 1553 on that day. If the
call option is assigned against her on that day, what is her net obligation on April 01, 2002? [1
mark]

(a) Pay-out of Rs. 21,600

(b) Pay-in of Rs.15,000

(c) Pay-out of Rs.13,400

 (d) Pay-in of Rs.6,600

(e)
VaR methodology seeks to measure the amount of value that a portfolio may stand to lose
within a certain horizon time period due to potential changes in . [1 mark]

(a) underlying exposures

(b) underlying asset spot price

(c) underlying stock volatility

(d) underlying index volatility

(e)
Mr. A sells a futures contract of M/s. XYZ Ltd. (Lot Size: 1000) expiring on 29/Sep/2005 for Rs.
Q191. 300. The spot price of the share is Rs. 290. The securities transaction tax thereon would be
. [1 mark]

(a) Rs. 10

(b) Rs. 80

(c) Rs. 20

(d) Rs. 51

(e)
An index put option at a strike of Rs. 2176 is selling at a premium of Rs. 18. At what index level
will it break even for the buyer of the option? [1 mark]

(a) Rs. 2194

(b) Rs. 2196

(c) Rs. 2158

(d) Rs. 2162

Which of the following should be disclosed separately for long and short positions, in respect of
each series of equity index futures as of the balance sheet date? [1 mark]

(a) Number of equity index futures contracts having open position

(b) Number of units of equity index futures pertaining to the contracts

(c) The daily settlement price

(d) All of the above

(e)
Q194. Futures differs from forwards in the sense that . [1 mark]

(a) settlement of contract takes place in the future

(b) both parties are bound to give/take delivery

(c) positions are marked-to-market everyday

(d) contracts are custom designed

 You have bought a portfolio of securities on the exchange. To eliminate the risk arising out of
Q195. market, you should . [1 mark]

(a) buy index futures

(b) buy stock futures

(c) sell stock futures

(d) sell index futures

The clearing member/trading member is required to disclose to the clearing corporation details
Q196. of any person(s) acting in concert who together own % or more of the open interest of all
futures and options contracts on a particular underlying index on the stock exchange [1 mark]

(a) 12

(b) 15

(c) 20

(d) 25

The spot price of TISCO is Rs. 2050 and the cost of financing is 10%. What is the fair price of a
Q197.
one month futures contract on TISCO? [1 mark]

(a) 2,082.80

(b) 2,066.30

(c) 2,085.15

(d) 2,099.40

Cyrus is short 600 WIPRO July Puts at strike Rs. 1520 for a premium of Rs. 33 each on July 22,
2002. On July 25, 2002 (the expiration day of the contract), the spot price of WIPRO closes at
Q198. Rs.1553, while the July futures on WIPRO close at 1555. Does Cyrus have an obligation to the
Clearing Corporation on his positions, and how much, if any? [1 mark]

(a) Yes. Rs.19,800 pay-out

(b) No pay in or pay-out on expiration of contract

(c) Yes. Rs.18,900 pay-out

(d) Yes. Rs.19,800 pay-in

Which of the following is required for personnel working in the industry in order to dispense
Q199. quality intermediation? [1 mark]

(a) To follow certain code of conduct.

(b) To possess requisite skills and knowledge.

(c) To have a proper understanding of the business and skills to help it remain competitive.
 (d) All of the above

June futures contract on WIPRO closed at Rs. 1153 on May 20 and at Rs. 1150 on May 21,
2002. Raju has a short position of 4000 in the June futures contract. On May 21, 2002, he sells
Q200. 3000 units of 10-June-2002 expiring Put Options on WIPRO at strike price of Rs.1145 for a
premium of Rs.28 per unit. What is his net obligation to / from the Clearing Corporation for May
21, 2002? [1 mark]

(a) Pay-in of Rs.32,000

(b) Pay-in of Rs.72,000

(c) Pay-out of Rs.96,000

(d) Pay-out of Rs.32,000

(e)
Assume that the base value of a market capitalization weighted index were 1000 and the base
Q201. market capitalisation were Rs.35,000 crore. If the current market capitalisation is
Rs.77,000 crore, the index is at Rs. . [1 mark]

(a) 2,110

(b) 2,350

(c) 2,250

(d) 2,200

Around 60% of the trading volume on the American Stock Exchange is from
Q202.mark] . [1

(a) Index Funds

(b) Index Futures

(c) ETFs

(d) Index Options

(e)
Q203. Swaptions are: [1 mark]

(a) Options to buy or sell a swap

(b) Options to roll over a swap

(c)Options on futures

(d) None of the above

 If the annual risk free rate is 10%, then the `r' used in the Black Scholes formula should be
. [1 mark]

(a) 0.095

(b) 0.1398

(c) 1.1

(d) None of the above

(e)
At the balance sheet date, the balance in the `initial margin equity index futures
account' should be shown separately under the head . [1 mark]

(a) prepaid expenses

(b) current assets

(c) outstanding balance

(d) current liabilities

(e)
Q206. Hedging with index futures means . [1 mark]

(a) long security, short security

(b) long index futures, short index futures

(c) long security, short index futures

(d) long security, long index futures

(e)
Q207. Which of the following is not the duty of the trading member? [1 mark]

(a) Filling of 'Know Your Client' form

(b) Assisting the client to arrange for margins

(c) Bringing risk factors to the knowledge of client

(d) Execution of Client Broker Agreement

(e)
Q208. On expiry, the settlement price of an index futures contract is . [1 mark]

(a) opening price of futures contract

(b) closing index value

(c) closing price of futures contract

(d) opening index value

(e)
Q209. The NEAT F&O trading system . [1 mark]

(a) allows one to enter combination trades

(b) does not allow combination trades

 (c)allows only a single order placement at a time

(d) None of the above

(e)
Santosh is bearish about ABC Ltd.and sells ten one-month ABC Ltd.futures contracts at
Q210. Rs.2,96,000. On the last Thursday of the month, ABC Ltd.closes at Rs.310. He makes a
. (assume one lot = 100) [1 mark]

(a) profit of Rs. 7,000

(b) loss of Rs. 7,000

(c) profit of Rs. 14,000

(d) loss of Rs. 14,000

(e)
Q211. A stock broker applies for registration to SEBI . [1 mark]

(a) through stock exchange(s) of which he or she is admitted as a member

(b) directly

(c)through association of members

(d) through Ministry of Finance

(e)
Q212. NCFM stands for . [1 mark]

(a) National Certification in Financial Management

(b) National Certification in Financial Markets

(c) NSE's Certification in Financial Markets

(d) NSE's Certification in Financial Management

(e)
In Indian context, derivative includes: A) A security derived from a debt instrument, share, loan
whether secured or unsecured, risk instrument or contract for differences or any other form of
security; B) A contract which derives its value from the prices, or index of prices, of underlying
securities; [1 mark]

(a) A

(b) B

(c) Both of the above

(d) None of the above

(e)
Q214. The futures price is . [1 mark]

(a) the price of a contract in the future

(b) spot price plus cost of carry

(c) the price at which a futures contract trades in the market

 (d) the price set by the
exchange
. [1 mark]
(e)
Q215. Index options on the S&P
CNX Nifty can be exercised

(a) any time on or before

maturity

(b) upon maturity

(c) any time upto

. [1 mark]
maturity

(d) on a date
pre-specified by the
trading member

(e)
Q216. A trading member allowed to
clear his own trades only is known
as

(a) Trading member -

clearing member

(b) Trading members are

not allowed to clear
their own trades

(c) professional clearing

member

(d) self clearing

member

Q217. The underlying asset for a derivative contract can be . [1 mark]

(a) Equity

(b) Commodities

(c) Interest Rate

(d) Any of the above

(e)
Q218. OTC derivatives are considered risky because . [1 mark]

(a) There is no formal margining system house.

(b) They do not follow any formal rules or mechanisms.

(c) They are not settled on a clearing.

(d) All of the above

(e)
The Indian company which provides professional index management services is
. [1 mark]

(a) IISL

(b) NSCCL
 (c)S&P

(d) CRISIL

Q220. If ALB > 25000.00, the default system limits is . [1 mark]

(a) 1.0 Times Networth

(b) 1.2 Times Networth

(c) 0.5 Times Networth

(d) 1.5 Times Networth