NISM Series XIII Mock Test 17

1. Long hedge is the transaction- when we hedge our position in futures market by going long in cash market.

2.

A ____ is where a trader buys a particular month contract ( futures or options ) and sell ( i.e. take an opposite position ) of the same contract of the different month

3. Derivative losses can be carried forward for a period of ______ assessment years.

4. When you sell a PUT option, you expect _________.

5. A Call Option is said to be In-the-Money if _________.

6. The clearing member's liquid net worth after adjusting for the initial margin and extreme loss margin requirements must be at least Rs. 50 lakhs at all points in time.

7.

On what basis are treasury bill futures contracts are traded?

8. What is the final settlement rate in case of 91-day treasury bill?

9. Contract cycle expires on _________.

10. The _________ shall record his reasons for treating any transaction or a series of transactions as suspicious

11.

Assuming a base price of 100 and a 1% trading range, what is the permissible opening price for the day?

12. Trading/Clearing Members can be in both governing councils of Currency derivatives segment and equity derivatives segment.

13. Individuals can become members in Currency derivatives segment.

14.

Which of the following complaints can be taken up by the exchange for redressal?

15. The ___________________ of the option is required to pay initial margin for entering into the option contract.

16. The prices or the yields of deliverable bonds do not change during trading hours in case of CTD bonds.

17.

How are futures contracts on 91 days t-bills settled?

18. An open interest is the total number of contracts traded in a month for an underlying asset.

19.

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

20. On exercise, the _________ gives its holder a positive cash flow.

21.

For interest rate derivatives transactions executed on Indian Stock Exchanges, stamp duty is levied on ____

22. __________ assets are segregated as cash component and non-cash component.

23. The price of Base Currency (BC) is expressed in Quoting Currency (QC) in the forex market

24. The inter-commodity spread consists of buying futures on one underlying and selling futures on another for the ________.

25. How many USDINR Futures contracts can be made available for trading at a given time?

26.

With respect to investments, what does Diversification means?

27. _________ are hybrid assets and derived by combining a bond with derivative product option whose underlying is one of the physical assets.

28. The carry price of the contract changes every day because of the _______.

29. _______ involves taking high risk in expectation of desirable profit.

30.

When using a bullish vertical spread with call options, the trader will typically _____

31. The 'Equity Index Option Premium Account' and the 'Equity Stock Option Premium Account' should be shown under the head _________.

32.

What term describes a trade that decreases a client’s existing open position in a contract?

33. The amount of asset that has to be delivered under one contract is the _______.

34. The market value is Rs 5.74 lakhs and its modified duration is 6.28. If the yield changes by one basis point, the market value will change by _______.

35. You own a portfolio of various stock for long term but currently you are unsure of the market. The best possible action to safe guard your investments is :

36. The ___________ are normally for spot deliveries, and are considered as base rate.

37. The operating range applicable in the stock futures is _____.

38. Which of the following statement is true about market index?

39.

What is the specified face value amount for one lot of treasury bill futures that can be traded?

40. ______ is defined as coupon divided by bond price.

41. A trader executes following currency futures trade: buys one lot of USD/INR, sells one lot of JPY/INR. What view has he executed?

42.

For the purposes of determining the expiry of cash settled single Government of India bond futures contracts, identify which of the following constitutes a three quarterly month?

43. Futures markets are designed to solve the problems that exist in the ____________.

44.

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

45. Expiry date i.e. the last trading day will be two business days prior to the Value date / Final Settlement Date.

46. The extent and availability of collateral should be factored in while arriving at the fair value of a _______ contract.

47. __________ can be readily computed from the market price of zero-coupon bond.

48. The client is expected to sign on the ____________ of the contract note.

49. __________ does clearing, settlement and risk management for trades executed on Exchanges.

50. Arbitrageurs lock in a profit by simultaneously entering opposite side transactions in two or more markets.