1. Futures trading helps in:

2. In India, index derivatives are available on:

3. Mark-to-market losses are settled:

4.

All the 50 stocks of NSE NIFTY index are equally weighted while calculating the index.

5.

Insurance companies are allowed to participate in interest rate futures only for _____.

6.

Which of the following segments of market participants are allowed to trade in currency futures?

7.

Guidance Notes on Accounting for Derivatives Contract recognise following type of hedging for hedge accounting: ____________.

8. Find out the Intrinsic value of a CALL option of ABC. Spot is Rs 2000. Strike is Rs 2020.

9.

A ________ order is classified as price related condition.

10. For equity derivatives, carrying cost is the interest paid to finance the purchase less (minus) dividend earned.

11. Credit spread is the price of ___________.

12. What is the settlement method for USDINR futures?

13. Which one of the following statements is FALSE?

14.

A defaulting member's clients’ positions could be transferred to ____________ by the Clearing Corporation.

15. Which of these best defines basis in futures trading?

16. Operational risks include losses due to ____________.

17. Which of the following qualifies as Liquid Assets for margin?

18.

You expect GBP/USD to rise from 1.63 to 1.68. How should you trade GBP/INR & USD/INR futures?

19. RBI guideline on Rupee Interest Rate Derivatives (Reserve Bank) Directions, 2019 permit _______________ to participate in interest rate derivatives contract.

20. A put option becomes profitable when:

21.

For the open positions on last trading day, the seller must notify the Clearing Corporation his intention to deliver by the close of ____

22. The ___________ has a strong international presence and second-largest and second-most traded currency in the international markets.

23. Profit for call option buyer =

24. _______ is the price that is used to compute the price range for the opening trade on any trading day.

25. A trader shorted a future at ₹1,000. Price rose to ₹1,050. The loss is:

26. Unsystematic risk can be reduced by portfolio diversification.

27. Which is the most active currency pair in the world?

28. Securities Transaction Tax (STT) in case of Sale of an option in securities is payable by_______.

29. A person has invested INR 100,000 in an Indian corporate bond for a year giving a
return of 16% in one year. The person plans to use the proceeds from the maturity of
corporate bond to fund his son's education on US. At the time of investing in the
corporate bond, USDINR spot rate was 70 and one year premium was 4%. The person
decides to hedge currency risk using USDINR one year futures. At the end of one year,
how many USD can this person remit to his son.

30. Which Greek indicates the impact of time decay on an option?

31. Margin money in futures contracts is meant to:

32. A derivative derives its value from:

33. The initial margin amount is large enough to cover a one day loss that can be encountered on ________ of the days.

34. The most traded currency pair is:

35. If participant buy 10 lot of single bond futures at Rs. 99, then contract value _________.

36. A speculator's aim in derivatives is to:

37. Index derivatives are based on:

38. Assume you are an exporter, and you want to sell USD that you have received as
export remittance. The bank quotes a price of 75.10 / 75.12 for USDINR. At what price
can you sell one unit of USD?

39. Which of the following is the last trading day for cash settled 10-year bond futures?

40.  Which of the following is a non-deliverable forward (NDF)?

41. In an interest rate swap, the floating leg is typically tied to:

42.

Assume that the one-year interest rate is 1% in US, 2% in UK and 7% in India. If current GBPINR spot rate is 91.60, what would be the one-year future rate of GBPINR?

43. If Vega is high, then:

44. Market risk or systematic risk can be reduced by using index derivatives.

45. Following derivatives contracts are traded only on Exchanges?

46. Futures contracts are:

47.  What best describes a derivative?

48. The purpose of interest rate swaps is to:

49.

Execution of Power of attorney by the client in favor of stockbroker is _____

50. Option buyer faces ________ risk and option seller faces __________ risk.

51. __________ net worth shall be computed as liquid assets less initial margin and extreme loss margin payable at any point in time.

52. A calendar spread contract in index futures attracts ___________.

53.

How are proprietary positions calculated for a Trading Member?

54.

At 11 am RBI announced the credit policy and a deduction in interest rates. Generally such a step will lead to ______ of rupees

55. On the derivative exchanges, all the orders entered on the Trading System are at prices exclusive of brokerage.

56. The counterparty risk in exchange-traded derivatives is borne by:

57.

Person goes short in a GBPINR futures contract at Rs.99.75 and on expiry GBPINR reference rate is Rs. 100.75, he will ________?

58. The initial margin is collected to:

59.

Regulations on buying and selling of T bills and T bond futures for NRIs and FII investors?

60. Tick size for Nifty futures is Rs 0.05.

61. Margins in 'Futures' trading are to be paid by _______.

62. Position limit for EURUSD at trading member level is?

63. If a put is bought at ₹10 premium with a strike of ₹100 and spot is ₹85 at expiry, profit =

64. Which of the following has higher credit risk?

65.

When a client defaults in making payments in respect of a daily settlement, the contract is closed out. The amount not paid by the client is adjusted against the ___

66. Which of the following is NOT an example of a derivative?

67. The maximum loss in buying a call option is:

68. The minimum net worth required for a Clearing Member is:

69. Option premium increases with:

70.

___ is the process of computing open positions and determining mark to market margins

71. If a member has payable obligation towards pay-in as well as margins, then ________.

72.

Consider a scenario in which USDINR was quoting as 63.40/63.42 and EURUSD as 1.1450/1.1453 in the morning and by the day end USDINR moves to 63.10/63.12 while EURUSD moves to 1.1420/1.1422. What would best describe the movement of currency during the day?

73. Intrinsic value of a call option =

74.

Assume that on 1st December 2020, USD-INR spot was at 45, premium for January 2021 maturity put option at strike of 45.5 is INR 0.54/0.55 and premium for January 2021 maturity call option at strike of 45 is INR 0.71/0.72. A client executes a trade wherein he buys put at a strike of 45.5 and sells a call at a strike of 45. On expiry the RBI reference rate is 44.75. How much net profit/loss did the client make per USD?

75. Which category of market participants seeks to reduce risk exposure?

76. Total number of derivatives contracts outstanding is called __________

77. Which of the following instruments is used for hedging index exposure?

78. Which one is true about SEBI’s regulation on derivatives?

79.

A company expects to receive USD 100,000 in 2 months. Current USDINR is 83.40. To hedge, it sells USD futures at 83.60. If INR appreciates to 83.00 at expiry, what is the profit?

80.

Margins across the various clients of a member are collected on a gross basis

81. The price which option buyer pays to option seller to acquire the right is called as ___________.

82. Cost of carry includes:

83. Which of the following is a derivative instrument?

84. If an option is exercised, the STT is applicable on:

85. Hedging using futures helps to:

86. Put option is in-the-money when:

87. At-the-money option means:

88. An option is _________, if on exercising it, the option buyer gets positive cash flow.

89.

Hedging for multiple bonds in a portfolio can be done by using _____

90. SEBI-registered brokers can introduce DMA facility to their clients after obtaining permission from respective ____________.

91. Which act empowers SEBI to regulate securities markets?

92.

A trader feels that INR should depreciate against USD in next few months. What currency futures trade will be profitable to him if his views comes correct?

93. Which organization guarantees financial settlement in derivatives?

94. Exposure margin is collected for:

95. Which of the following derivatives have the largest market size globally?

96.

A call option gives the buyer the right to buy the underlying at market price

97. A Buy or a Sell order(s) which is/ are lying unmatched in the order book are known as
________________.

98.

What is the net payoff for Ms. Sakshi, who purchased a Rs 21.50 strike call option for Rs 0.20, if the underlying bond price closes at Rs 21.70 on the expiry date?

99. Order lying unmatched in the system is called _____________.

100. When the forex strike rate increases, the put option premium _______.

101. Usually, income from Exchange traded derivatives is treated as _________.

102. Which of the following is true about put options?

103.

Limitation of Interest Rate Derivatives for Hedgers is mainly due to ____

104. Maximum loss for a short straddle is:

105. Nifty and Sensex originally followed which methodology?

106. AML stands for:

107. Usually, income from Exchange traded derivatives is treated as _________.

108. What is the Base Minimum Capital requirement specified by the SEBI for only
Proprietary trading without Algorithmic trading (Algo)?

109. Which currency is considered a ‘safe haven’?

110. If implied volatility increases, which of the following increases in value?

111. In India, currency futures are regulated by:

112. What is “Impact cost” in the context of an index?

113. Which of these is NOT a characteristic of a forward contract?

114.

Identify the contract which is cleared and settled bilaterally

115.

You sold one XYZ Stock Futures contract at Rs. 278 and the lot size is 1,200. What is your profit (+) or loss (-), if you purchase the contract back at Rs. 265?

116.

A naked position involves holding an equivalent position in the underlying asset

117. State whether TRUE or FALSE: Impact cost is low when the liquidity in the system is poor.

118. A trader sells a future and buys the same stock. He is:

119. If an Option has a high Gamma, what can be said about Option’s Delta?

120. A covered call strategy involves:

121.

If the annual interest rate is 5% and the dividend yield on a stock is 2%, what is the six-month futures price of a stock currently trading at Rs 500 in the spot market?

122.

The market value of one contract is 2,000 times the quoted price and the market price is 106.10, the face value of 200,000. Compute the market value.

123. Initial margin requirements shall be based on 99% _________ over a one day time horizon.

124. The difference between option premium and intrinsic value is __________.

125. A Buy or a Sell order(s) which is/are lying unmatched in the order book are known as ________________.

126.

The lot size for EURINR futures contract is

127. In case of Clearing Member default, which funds are used first?

128. Interoperability of clearing corporation framework is allowed for all the products available in the Indian securities markets, EXCEPT: __________.

129.

Daily Mark to market settlement of Exchange traded interest rate future contract is __________.

130. Clearing members are responsible for:

131. A call option gives the holder the:

132. Which user is at the lowest level in the heirarchy of trading firm?

133. As a trader you believe EURUSD will move from 1.58 to 1.44 in next 2 months. Which of the following would you do to execute this view using currency futures contract of EURINR and USDINR?

134.

An importer takes a long position in USDINR futures contract at a price of 53 by buying 20 lots. At the  expiry, the settlement price is 54.3. how much profit or loss did the importer make?

135. What is the settlement method for 91-day bill futures?

136. The current yield cannot be considered as true return because it does not consider the ________.

137. When the index future is used to hedge against the market risk on a portfolio, then it can be called as a cross hedge.

138. SEBI was established under which year’s Act?

139.

According to the Securities Contracts (Regulation) Rules, 1957, what is the minimum age for an individual to become a trading member?

140. Mark-to-market margin is calculated:

141. Which of these is true about a European Option?

142.

A Professional Clearing Member of derivatives segment _______

143. The difference between option premium and intrinsic value is __________.

144.

If 1 year interest rate is 2% in USA and 10% in India, and USDINR is at 44, what is the expected 6 month future rate?

145. Derivative transactions before FY 2005–06 were considered:

146.

Insurance companies are allowed to participate in interest rate futures only for _____.

147. A penalty or suspension of registration of a stock broker from derivatives exchange/segment under the SEBI (Stock Broker) Regulations, 1992 can take place if _______________.

148. Which of the following is true?

149. Interoperability of clearing corporation framework is allowed all the products
available in the Indian securities markets, EXCEPT:

150.  

Rahul owns five hundred shares of ABC Ltd. Around budget time, he gets uncomfortable with the price movements. Which of the following will give him the hedge he desires (assuming that one ABC futures contract = 100 shares) ?