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1. DEFINE DERIVATIVES
2. DISTINGUISH BETWEEN FORWARD AND FUTURES MARKETS
3. STATE ANY TWO MAJOR PROVISIONS OF FORWARDS CONTRACT
REGULATIONS ACT 1952
4. LIST ANY FOUR POINTS RELATED TO REGULATION OF DERIVATIVES IN
INDIA
5. DEFINE INDEX FUTURES
6. WHAT IS THE DIFFERENCE BETWEEN LONG AND SHORT FORWARD
POSITION
7. EXPLAIN OPTION PREMIUM
8. WHAT IS PLAIN VANILLA INTEREST RATE SWAP
9. WHAT IS HEDGE ACCOUNTING
10. DEFINE MIBOR AND LIBOR
11. WHAT IS THE CONCEPT OF CASH SETTLEMENT
12. WHAT IS AN ARBITRAGE POSITION
13. WHAT IS COVERED INTEREST ARBITRAGE
14. WHAT IS MARK TO MARKET
15. DIFFERENCE BETWEEN DIRECT AND INDIRECT QUOTE IN FOREX QUOTES
16. WHAT IS EFFECT OF UNEXPECTED CASH DIVIDEND ON A CALL OPTION
PRICE
17. HOW IS THE PRICE OF SWAP QUOTED
18. WHAT DO YOU UNDERSTAND BY VEGA RISK
19. WHAT IS THE DIFFERENCE BETWEEN TRANSACTION EXPOSURE AND
TRANSLATION EXPOSURE.
20. what are the advantages of rolling settlement
21. distinguish between stock and index futures
22. what is performance bond margin
23. what is accreting swap
24. what is EEFC account
25. define credit derivatives
26. explain SHORT STOCK LONG CALL STRATEGY
27. EXPLAIN LONG STOCK LONG CALL STRATEGY
28. EXPLAIN LONG STOCK SHORT CALL STRATEGY
29. EXPLAIN SHORT STOCK SHORT PUT STRATEGY
30. what is badla system in Indian stock market and what is it replaced with in
modern markets
31. what is hedging and what is its purpose
32. discuss differences between options and futures
33. what are call and put options and their pay off systems
34. explain the features of SWAPTIONS
35. how is tax on derivatives done in India
36. what is interest rate options
37. what is interest rate caps
38. how is accounting treatment of derivative transactions made
39. what are credit derivative instruments.
40. differentiate future vs option
41. what is rolling over of forward contract
42. differentiate badla from a forward trade
43. what is short hedging
44. what is in the money put and call option
45. explain long position in put option with examples
46. define financial asset as per IAS 32
47. what are derivative exposure and open positions
48. what is the rationale for use of short term interest rate futures
49. what is currency swap
50. distinguish SWAP and OPTION
51. WHAT ARE CREDIT DERIVATIVES
52. WHAT ARE WEATHER DERIVATIVES
53. SHORT TERM INTEREST RATE ARBITRAGE
54. FOREIGN CURRENCY FUTURES
55. EQUITY FORWARDS
56. EXOTIC OPTIONS
57. VEGO
58. RHO
59. RISK AVERSION
60. WHAT IS PRICE TIME PRIORITY
61. SYNTHETIC FUTURES
62. RAINBOW OPTION
63. CRITERIA FOR STATEMENT OF RECOMMENDED PRACTICES SORP
64. BULL CALL SPREAD
65. BULL PUT SPREAD
66. IRON BUTTERFLY
67. REGULAR BUTTERFLY
68. expiry date
69. what are carry type commodities
70. derivative exposure
71. explain the need for financial derivatives in the capital market
LONG ANSWER QUESTIONS
Explain the different types of financial derivatives along with their features in
brief.
What are warrants and convertible securities? Also explain the critiques of
derivatives with suitable examples.
Define the forward contract. Also, discuss the features of the forward contract.
Compare and contrast between forwarding contracts and futures contracts with
suitable examples.
How would you convert a floating rate liability into a fixed rate liability using
swap? Draw a schematic diagram to explain your answer.
What are the problems in arranging a swap and how are they overcome by swap
intermediary/bank?
Explain hedging of fixed rate and floating rate loans using swap.
How are currency swaps and interest rate swaps used for reducing cost?