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2 time decay risk delay risk decay time delay [2 Marks] [1 Mark]
All of the following are true regarding futures contracts except (a) (b) (c) (d) they they they they are regulated by RBI require payment of a performance bond are a legally enforceable promise are market to market
Clearing Members (CMs) and Trading Members (TMs) are required to collect upfront initial margins from all their Trading Members/Constituents. [2 Marks] (a) (b) FALSE TRUE [3 Marks]
All open positions in the index futures contracts are daily settled at the (a) (b) (c) (d) mark-to-market settlement price net settlement price opening price closing price
An American style call option contract on the Nifty index with a strike price of 3040 expiring on the 30th June 2008 is specified as ’30 JUN 2008 3040 CA’. [2 Marks] (a) (b) FALSE TRUE [2 Marks]
Usually, open interest is maximum in the _______ contract. (a) (b) (c) (d) more liquid contracts far month middle month near month
client.11 An investor is bearish about ABC Ltd. ABC Ltd.8 Position limits have been specified by _______ at trading member.510. On the last Thursday of the month. 5.9 An order which is activated when a price crosses a limit is _________ in F&O segment of NSEIL. [2 Marks] (a) (b) (c) (d) Sub brokers Brokers SEBI RBI Q. 10.100 108 . and sells ten one-month ABC Ltd.Q. 5. A copper fabricator entering into futures contracts to buy his annual requirements of copper. futures contracts at Rs. closes at Rs.100 profit of Rs. (assume one lot = 100) [2 Marks] (a) (b) (c) (d) Profit of Rs. market and FII levels respectively.000 loss of Rs. (a) (b) (c) (d) basket of stocks basket of bonds and stocks basket of tradeable debentures None of the above [1 Mark] Q.7 An equity index comprises of ______.000. [1 Mark] (a) (b) (c) (d) stop loss order market order fill or kill order None of the above [1 Mark] Q.10 Which of the following is not a derivative transaction? (a) (b) (c) (d) An investor buying index futures in the hope that the index will go up. A farmer selling his crop at a future date An exporter selling dollars in the spot market Q.000 loss of Rs.00. 10.5. He makes a _________.
150 Q. 1860.1.16 In the Black-Scholes Option Pricing Model.000 Rs. He pays a premium of Rs.Q. when S becomes very large a call option is almost certain to be exercised [2 Marks] (a) (b) FALSE TRUE Q. [2 Marks] (a) (b) (c) (d) Rs. 1910.13 After SPAN has scanned the 16 different scenarios of underlying market price and volatility changes. A month later the stock trades in the market at Rs.200 Rs. Upon exercise he will receive __________.1.17 Suppose Nifty options trade for 1. it selects the ________ loss from among these 16 observations [2 Marks] (a) largest (b) 8th smallest (c) smallest (d) average Mr. 1870. [1 Mark] (a) (b) TRUE FALSE Q.1. 1890.200.14 Q.000 Rs. 1900.6.15 There are no Position Limits prescribed for Foreign Institutional Investors (FIIs) in the F&O Segment. 1880.12 The interest rates are usually quoted on : (a) (b) (c) (d) Per Per Per Per annum basis day basis week basis month basis [2 Marks] Q.10.50/call.300. 2 and 3 months expiry with strike prices of 1850. Ram buys 100 calls on a stock with a strike of Rs.1. How many different options contracts will be tradable? [2 Marks] (a) (b) (c) (d) 27 42 18 24 109 .
(a) (b) (c) (d) A unique CP code An order identifier A PIN number A trade identifier Q.Q.98% 14. of underlying securities. transaction in derivatives were considered as speculative transactions for the purpose of determination of tax liability under the Income-tax Act [1 Mark] (a) (b) TRUE FALSE [3 Marks] Q.21 The favorable difference received by buyer/holder on the exercise/expiry date.50% 13.22 Q.75% Q.23 110 . will be recognized as ___________ [2 Marks] (a) Income (b) Expense (c) Cannot say (d) None The F&O segment of NSE provides trading facilities for the following derivative instruments.19 ______ is allotted to the Custodial Participant (CP) by NSCCL. What is the equivalent rate with continuous compounding? [2 Marks] (a) (b) (c) (d) 14% 14. or index of prices. between the final settlement price as and the strike price.18 Prior to Financial Year 2005 . except [2 Marks] (a) Individual warrant options (b) Index based futures (c) Index based options (d) Individual stock options Derivative is defined under SC(R)A to include : A contract which derives its value from the prices. [1 Mark] (a) (b) TRUE FALSE Q.06.20 An interest rate is 15% per annum when expressed with annual compounding.
27 An investor is bearish about Tata Motors and sells ten one-month ABC Ltd.futures contracts 10 ABC Ltd. 6.28 The beta of Jet Airways is 1. He makes a _________.600. 9500 Loss of Rs.25 A dealer sold one January Nifty futures contract for Rs. 9000 Loss of Rs. On the last Thursday of the month. How much profit/loss did he make ? [2 Marks] (a) (b) (c) (d) Profit of Rs. (assume one lot = 100) [2 Marks] (a) (b) (c) (d) Profit of Rs. Which of the following will give him the hedge he desires (assuming that one futures contract = 100 shares) ? [1 Mark] (a) (b) (c) (d) Buy Sell Sell Buy 5 ABC Ltd.000 Profit of Rs. 8.250.100. Each Nifty futures contract is for delivery of 50 Nifties.000. he gets uncomfortable with the price movements. Which of the following is TRUE? [2 Marks] (a) He is bullish on Nifty and bearish on Jet Airways (b) He has a partial hedge against fluctuations of Nifty (c) He is bearish on Nifty as well as on Jet Airways (d) He has a complete hedge against fluctuations of Nifty 111 .000 Q.000 coupled with a short Nifty position of Rs.000 on 15th January. On 25th January. Around budget time.futures contracts Q. Tata Motors closes at Rs.6.24 The risk management activities and confirmation of trades through the trading system of NSE is carried out by _______. [2 Marks] (a) (b) (c) (d) users trading members clearing members participants Q.futures contracts 10 ABC Ltd. 8.Q.000 Loss of Rs. A person has a long Jet Airways position of Rs.06. the index closed at 5100.3. 5000 Q.26 Manoj owns five hundred shares of ABC Ltd. 6.futures contracts 5 ABC Ltd. 200.000 Loss of Rs. 8000 Loss of Rs.000. futures contracts at Rs.
05 per call.19. (a) (b) (c) (d) SEBI any exchange a recognized stock exchange any stock exchange [1 Mark] Q.Q. HLL closes at Rs.210. 115. 105.500 Rs.18. 90.1.000 Q.950 Rs. 100.32 Ashish is bullish about HLL which trades in the spot market at Rs.34 .29 Suppose a stock option contract trades for 1. [1 Mark] (a) (b) (c) (d) Rs. Assuming 1 contract = 100 shares. How many different options contracts will be tradable? [2 Marks] (a) (b) (c) (d) 18 32 21 42 [2 Marks] Q. 95.30 The bull spread can be created by only buying and selling (a) (b) (c) (d) basket option futures warrant options Q.20.000 Rs.10.31 A stock broker means a member of_______. his profit on the position is ____. He buys 10 three-month call option contracts on HLL with a strike of 230 at a premium of Rs.33 A January month Nifty Futures contract will expire on the last _____ of January [2 Marks] (a) Monday (b) Thursday (c) Tuesday (d) Wednesday Which of the following are the most liquid stocks? (a) (b) (c) (d) All Infotech stocks Stocks listed/permitted to trade at the NSE Stocks in the Nifty Index Stocks in the CNX Nifty Junior Index 112 [2 Marks] Q. 110. 250. Three months later. 2 and 3 months expiry with strike prices of 85.
as the case may be. 1220.35 In the books of the buyer/holder of the option. What is the outstanding position on which initial margin will be calculated? [1 Mark] (a) 300 units (b) 200 units (c) 100 units (d) 500 units Q.38 Trading member Shantilal took proprietary purchase in a March 2000 contract. 1221. He bought 1500 units @Rs.36 Greek letter measures a dimension to_______________ in an option position. [1 Mark] (a) the risk (b) the premium (c) the relationship (d) None An option which gives the holder the right to sell a stock at a specified price at some time in the future is called a ___________.Q. [2 Marks] (a) Debited (b) Credited (c) Depends (d) None Q.1200 and sold 1400 units @ Rs. the premium paid would be ___________ to ‘Equity Index Option Premium Account’ or ‘Equity Stock Option Premium Account’. foreign currency futures based on new floating exchange rate system were introduced at the Chicago Mercantile Exchange [1 Mark] (a) 1970 (b) 1975 (c) 1972 (d) 1974 113 .37 Q. [1 Mark] (a) Naked option (b) Call option (c) Out-of-the-money option (d) Put option Q.39 In which year. The end of day settlement price was Rs.
[1 Mark] (a) (b) TRUE FALSE Q.41 With the introduction of derivatives the underlying cash market witnesses _______ [1 Mark] (a) lower volumes (b) sometimes higher.45 Any person or persons acting in concert who together own ______% or more of the open interest in index derivatives are required to disclose the same to the clearing corporation.42 Q.Q.44 The value of a call option ___________ with a decrease in the spot price. sometimes lower (c) higher volumes (d) volumes same as before Clearing members need not collect initial margins from the trading members [1 Mark] (a) FALSE (b) TRUE Which risk estimation methodology is used for measuring initial margins for futures/ options market? [2 Marks] (a) (b) (c) (d) Value At Risk Law of probability Standard Deviation None of the above Q.43 Q. [2 Marks] (a) (b) (c) (d) increases does not change decreases increases or decreases Q. [1 Mark] (a) 35 (b) 15 (c) 5 (d) 1 114 .40 The units of price quotation and minimum price change are not standardised item in a Futures Contract.
[2 Marks] (a) branch manager. Which of the following will give him the hedge he desires? [2 Marks] (a) (b) (c) (d) Buy Sell Sell Buy 5 Reliance futures contracts 10 Reliance futures contracts 5 Reliance futures contracts 10 Reliance futures contracts Q. branch manager (d) corporate manager. Premium = Rs. corporate manager (b) corporate manager.49 In the NEAT F&O system. Rs. One contract on Reliance is equivalent to 100 shares. Net profit for the Buyer of the Option is ___.50 Q.500 Lakh None of the above 115 .300 Lakh Rs.250 Lakh Rs.48 Spot Price = Rs. dealer. branch manager The open position for the proprietary trades will be on a _______ (a) (b) net basis gross basis [3 Marks] Q. [2 Marks] (a) (b) (c) (d) Two-month expiry cycles Four month expiry cycles Three-month expiry cycles One-month expiry cycles Q. except.51 The minimum networth for clearing members of the derivatives clearing corporation/ house shall be __________ [2 Marks] (a) (b) (c) (d) Rs. On Expiry of the Option the Spot price is Rs. 6 5 2 4 Q. CNX IT. [1 Mark] (a) (b) (c) (d) Rs. dealer. 108. 4. Rs. corporate manager. the hierarchy amongst users comprises of _______.46 NSE trades Nifty. Around budget time. branch manager. he gets uncomfortable with the price movements. An investor buys the Option contract.47 An investor owns one thousand shares of Reliance. 100. Nifty Midcap 50 and Mini Nifty futures contracts having all the expiry cycles. Call Option Strike Price = Rs. Rs. 98. dealer (c) dealer. BANK Nifty.Q.
52 The Black-Scholes option pricing model was developed in _____.54 Q. (a) (b) (c) (d) client clearing member broker trading member [1 Mark] Q. both N(d1) and N(d2) are both close to 1.56 To operate in the derivative segment of NSE. (a) (b) (c) (d) 1923 1973 1887 1987 [2 Marks] Q.57 The NEAT F&O trading system ____________.Q.53 In the case of index futures contracts.55 In the Black-Scholes Option Pricing Model.0. as S becomes very large. [2 Marks] (a) (b) FALSE TRUE Q. the dealer/broker and sales persons are required to pass _________ examination. [3 Marks] (a) closing price of futures contract (b) opening price of futures contract (c) closing spot index value (d) opening spot index value Premium Margin is levied at ________ level. [1 Mark] (a) (b) (c) (d) (e) Certified Financial Analyst MBA (Finance) NCFM Chartered Accountancy Not Attempted [1 Mark] Q. (a) (b) (c) (d) allows one to enter spread trades does not allow spread trades allows only a single order placement at a time None of the above 116 . the daily settlement price is the ______.
705 Rs. Market Interest rate = 12% and dividend expected is 6%? [2 Marks] (a) (b) (c) (d) Rs.58 Margins levied on a member in respect of options contracts are Initial Margin.59 American option are frequently deduced from those of its European counterpart [1 Mark] (a) FALSE (b) TRUE Which of the following is closest to the forward price of a share price if Cash Price = Rs.750. 795 Rs. Premium Margin and Assignment Margin [1 Mark] (a) (b) TRUE FALSE Q.60 117 . 845 None of these Q.Q. Futures Contract Maturity = 1 year from date.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Answers (a) (a) (b) (a) (b) (d) (a) (c) (a) (d) (b) (a) (a) (a) (b) (b) (b) (a) (a) (c) (a) (a) (a) (c) (d) (b) (a) (b) (d) (d) Question No. 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 Answers (c) (a) (b) (c) (a) (a) (d) (c) (c) (b) (c) (a) (a) (c) (b) (b) (b) (a) (b) (a) (a) (b) (a) (a) (b) (c) (a) (a) (b) (a) 118 .Question No.