1.

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

2.

Arbitragers take advantage of ______ in the markets

3.

Forward on interest rate is called

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

5.

True return can be calculated in advance for

6.

When a seller Short Sells a stock, it means ___

7.

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?

8.

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

9.

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

10.

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

11.

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

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

13.

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

14.

_____ has the highest notional amount outstanding in world derivative market

15.

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

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

17.

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

18.

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

19.

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

20.

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

21.

3-month calendar spread for GBPINR is

22.

What does a seller of a Put option expect?

23. 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 ________.

24.

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

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

26.

The accrued interest is paid by

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

28.

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

29.

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

30.

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?

31.

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

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

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

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

35.

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

36.

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

37.

Contract size for currency future contract is ____

38.

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

39.

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

40.

The Public Debt Office is the depository for

41.

The economic role of derivatives is

42.

The initial margin is always equal to mark to market margin

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

44.

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

45.

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

46.

A Professional Clearing Member can execute trades for

47.

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

48.

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

49.

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

50.

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?