NISM Series XIII Mock Test 19

1. If USD interest rate were to remain stable and INR interest rate were to go up, then which position will be profitable _______.

2. Bearish Vertical Spreads can be implemented by the use of _________.

3. A TM's open position is the ____________.

4. The relationship between bond price and yield to maturity is _______.

5. The computation of turnover is a very important factor as the applicability of _________ is determined on the basis of turnover.

6. A _______ is an agreement made through an organized exchange to buy or sell a fixed amount of a commodity.

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

8.

What is the breakeven point (BEP) for a call option with a strike price of 17500 and a premium of 185?

9. The minimum net worth for the trading membership on the interest rate futures as of the latest balance sheet should be _______ for clearing member.

10. In the Arbitration procedure, the arbitrator conducts the arbitration proceeding and passes the award normally within a period of _______months from the date of initial hearing.

11.

What did the Dr. L. C. Gupta committee recommend in its report?

12. Convenience return for a commodity is likely to be different for different people, depending on the way they use it.

13. The _______ deviation is calculated using the Exponential Weighted Moving Average (EWMA).

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

15. If the current price of bond is 101.7125 and its modified duration is 1.71, then price value of basis point will be ________.

16. A person has invested USD 100,000 in US equities with a view of appreciation of US stock market. In next one year, his investments in US equities appreciated in value to USD120,000. The investor decided to sell off his portfolio and repatriate the capital and profits to India. At the time of investing abroad the exchange rate was 44.5 and at the time of converting USD back into INR, he received an exchange rate of 46. How much is the return on investment in USD and in INR respectively?

17.

What has contributed significantly to the growth of OTC derivatives market?

18. What is a contract size?

19. _________________ is an option that would lead to a negative cash flow if it were exercised immediately.

20.

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?

21.

____ are derivatives with underlying as theoretical bond and not a physical bond

22. The act of converting a fixed-rate loan into a floating-rate loan is _______.

23. Theta is ___________.

24. Final Settlement rate would be the _______ Reference rate for the date of expiry.

25. Currently American options are not allowed in currencies in India.

26. Tick size for Nifty futures is Rs 0.05.

27. ___________ is the last day on which the futures contract will be traded, at the end of which it will cease to exist.

28.

Operational risks in a financial context can include losses due to which of the following?

29. The maximum penalty for any member or client who increased the existing positions or created a new position in the security under Future & Option ban is __________.

30. You have taken a short position of one contract in June XYZ futures (contract multiplier 50) at a price of Rs. 3,400. When you closed this position after a few days, you realized that you made a profit of Rs. 10,000. Which of the following closing actions would have enabled you to generate this profit? (You may ignore brokerage costs)

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

32. Government securities & T-Bills can be considered as _________ of collateral deposits given to clearing corporation by its members.

33.

Profits from derivatives transactions for Indian investors are taxed as: __________

34. Clearing Corporation receives the details of trades and prices from the ___________.

35. Traditionally, the _______ serves the function of production-consumption in international trade.

36. For small value transactions, banks publish a standard price for the day called as card rate.

37. Who decides on the tick size of a contract ?

38.

Yield curve spread risk arises when the term structure shift is

39. The maximum loss limit, which the Risk Management system allows a member to sustain on a real-time basis, is ______ of the total deposit.

40. You are the owner of a 15 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 9000. Put options on the Nifty are available at three strike prices. Which strike will give you the insurance you want?

41. In OTC currency derivative market in India, is it possible for a corporate to write an option and receive a net premium?

42. Gaurav Buys USD-INR 16 contracts (1 lot= USD 1000) at Rs. 49.25 per unit. If tick size is Re.0025 how much he will gain or lose if there is upward movement of 10 ticks?

43. Find out the CROSS rate for GBP/AUD. Details : GBP/USD - 0.9891/0.9894,AUD/USD - 1.2287 /1.2289.

44. When a client defaults in making payments in respect of a daily settlement, ______________.

45. The margins shall be collected /adjusted from the _________ assets of the member on a real time basis.

46. You already have a short futures position in USDINR at 44.5 and you are keen to reduce losses on this position if USDINR strengthens beyond 44.5 i.e., goes above 44.5. As stated above, you are not keen to pay any upfront cash to buy protection. What can you do?

47. 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 _______________.

48. A trader in India expects international gold prices to appreciate from USD 1500 per ounce to USD 1800 in next six months. To benefit from the view, he buys 30 grams of gold at Rupees 22,000 per gram and also sold 6 month USDINR futures at 46. After six months, gold prices appreciated to USD 1800 per ounce and the trader sold gold at Rupees 24,000 per gram and unwinds currency futures contract at 44. Assuming 1 ounce is equal to 3 grams, how many lots of currency futures would he have used to hedge the currency risk and how much was the real return for the investor?

49. 2 Month Calendar Spread Margin for EURINR is _________.

50. Authorised persons cannot collect commission directly from the clients.