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

2.

A Professional Clearing Member can execute trades for

3.

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

4.

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

5.

Arbitragers take advantage of ______ in the markets

6.

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

7.

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

8.

The Public Debt Office is the depository for

9.

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

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

11.

Forward on interest rate is called

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

13.

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

14.

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

15.

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

16.

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

17.

Contract size for currency future contract is ____

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

19.

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

20.

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

21.

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

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

23.

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

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

25.

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

26.

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

27.

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

28.

The economic role of derivatives is

29.

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

30.

True return can be calculated in advance for

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

32.

_____ has the highest notional amount outstanding in world derivative market

33.

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

34.

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

35.

The accrued interest is paid by

36.

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?

37. 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 ________.

38.

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

39.

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?

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

41.

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?

42.

3-month calendar spread for GBPINR is

43.

What does a seller of a Put option expect?

44.

When a seller Short Sells a stock, it means ___

45.

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

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

47.

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

48.

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

49.

The initial margin is always equal to mark to market margin

50.

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