1.

_____ has the highest notional amount outstanding in world derivative market

2. In case of ________, the duration will be slightly less than its maturity.

3.

If the shape of the term structure is Normal, it implies that

4.

Arbitragers take advantage of ______ in the markets

5.

A seller of a call option can lose unlimited amount of money

6.

When a seller Short Sells a stock, it means ___

7.

The economic role of derivatives is

8.

Clearing Corporation protects itself from the counterparty credit risk and settlement risk from both buyer and seller by

9. Gaurav is bullish about HLL which trades in the spot market at Rs.210. He buys 10 three-month call option contracts on HLL with a strike of 230 at a premium of Rs.1.05 per call. At expiry, HLL closes at Rs. 250. Assuming 1 contract = 100 shares, his profit on the position is ________.

10.

For a stop loss buy order, the trigger price is ___ the limit price

11.

Forward on interest rate is called

12.

Mr. Govind thinks that the markets will go down, so he sells 10 lots of index futures at 3500. His predictions come true and the index falls, and Mr. Govind buys back the futures contracts at 3410. How much profit will he make if one lot of index is of 50

13.

A trading member has two clients : Client A and Client B. Client A has net long position of 12 and Client B has net short position of 10. What is the net position for trading member?

14.

In a calendar spread transaction, the trader takes opposite positions in two futures contracts with ____

15. For the currency pair, the standard practice is to write the BC code first followed by the QC code.

16.

If an order does not find a match in the trading system, it is ____

17.

A long position in futures market can be reversed only with the same counterparty from whom the contract was initially purchased.

18.

As per RBI circular, the contract size for JPYINR is JPY _____

19.

Options contracts have two types of settlements: _______ premium settlement and final settlement

20.

What does a seller of a Put option expect?

21.

____ are agreements between two parties to exchange cash flows in the future according to a prearranged formula

22. __________ can be bought and sold on an exchange like shares.

23.

3-month calendar spread for GBPINR is

24.

Megha wants to sell 34 contracts of ABC futures at Rs 2450 (contract multiplier is 50). Initial margin is 7%. How much will be the initial margin to be paid?

25.

The simultaneous purchase and sell of two different tenor futures contracts in the same underlying asset is known as _____

26.

The accrued interest is paid by

27.

Closing price of USDINR futures contract at the end of an active trading session will be calculated based on the

28.

Some months back, the 3 month rate was 8% and the 1 year rate was 8.8%. Currently the 3 month rate is 8.4% and 1 year rate is 8.9%. What is the shift of this term structure called?

29.

The initial margin is always equal to mark to market margin

30.

What is the maturity of the underlying for treasury bill futures in India?

31. Risk arrays for margin calculation are provided to members daily in a file called _____________.

32.

Long and Short positions can be offsetted at ____, for proprietary trades

33.

When the long term rate rises more as compared to short term rate, the shift in structure is

34.

Contract size for currency future contract is ____

35.

A Professional Clearing Member can execute trades for

36. ________ assume the price risk that hedgers attempt to lay off in the markets.

37.

_____ are permitted to become trading and clearing members of the currency futures segment of the recognized stock exchange

38.

The Public Debt Office is the depository for

39.

When the price of a future contract decreases, the margin account

40.

Delta of a long call option or short put is always ___

41.

If a trader in the currency futures market expects INR will appreciate against USD, then he will buy USDINR

42. On exercise of an option, the buyer/ holder will recognize premium as an_____________.

43.

In case of a member’s default, the Clearing Corporation cannot transfer client’s positions to another member or close out all open positions of defaulting member, without prior approval from SEBI

44. What is the main purpose of SEBI's caution regarding past or expected returns from algo strategies?

45. A Corporate manager is higher in the user hierarchy than the Branch Manager. True or False?

46.

True return can be calculated in advance for

47. In case of discount instruments it is possible to readily compute the true return or zero rate because there is ________.

48.

____ are orders for which no price is specified at the time of the order is entered. For such orders, system determines the price

49.

Which of these risks is most severe for Banks and Financial Institutions?

50.

____ measures the rate of change of option value to volatility of price of the underlying asset.