NISM Series XIII Mock Test 15

1. A Stock is currently selling at Rs 70. The call option to buy the stock at Rs 65 costs 9. what is the time value of the option?

2. Daily settlement price of futures contracts on any trading day is ________________.

3. On the last day of trading, settlement for futures contracts takes place at ___________.

4. The interoperability framework is applicable to all the recognised clearing corporations excluding those operating in ___________.

5. Total price risk in investment in securities is the sum of systematic risk or market risk and unsystematic risk or specific risk.

6. You have 100 Reliance shares bought at 1000 in your portfolio. How do you hedge it? CMP is Rs1000.

7. ______ dimensionless number that tells us the percentage change in bond's price caused by a given change in the yield.

8. An oil-importing firm- ABC Co. is expected to make future payments of USD 100000 after 3 months (in USD) for payment against oil imports. Suppose the current 3-month futures rate is Rs. 41. ABC Co. goes long in the futures contract to hedge itself. Its hedging strategy will protect itself against adverse exchange rate movements.

9. If one year interest rate is 2% in US and 8% in India. If current USDINR spot rate is 54 which of the following could be closest to the six month future rate of USDINR?

10. __________ is an inter-bank market that took shape in 1971 when global trade shifted from fixed exchange rates to floating rate regimes.

11. Scrips or portfolios having beta greater than 1 are called aggressive scrips or portfolios respectively.

12. In case of 10 year government bond, if less than five trades occur during the last two hours of trading, then _______ shall be used for final settlement.

13. The modified duration is affected by changes in _______.

14. In OTC, the market is open from 9:00 AM to 4:30 PM for ______.

15. ______ is the methodology used for pricing European options.

16. When the loss of member crosses the ______ of the total deposit limit, the member is suspended by the system.

17. _______________ has introduced STT on all derivative transactions entered into a stock exchange.

18. The calendar spreads have lesser margin requirements.

19. The call option buyer would exercise the option only if the spot price of underlying asset is higher than the strike price and premium paid.

20. _______ are allowed to provide trade annulment request on trading system.

21. The scrip will be banned in derivatives segment if the open interest __________.

22. The price at which settlement takes before spot date is a derived price from spot price and is not a __________ Price.

23. _________ risk is the potential risk that arises from mismatches in a hedged position.

24. ________ is a dynamic figure that changes based on activity in the options market place.

25. A protective put payoff is similar to that of ___________.

26. _______ is the market between banks where dealers quote prices at the same time for both buying and selling the currency.

27. Daily settlement price of futures contracts on expiry day is _______________.

28. In case a futures contract is not traded on a day or not traded during the last half hour, ____________ is used for daily settlement.

29. Presume Entity A is expected to pay USD 5000 after 3 months. He Wants to lock in the foreign exchange rate today so that the value of outflow in Indian rupee terms is safeguarded. The entity can do so by ________ of USD-INR futures at NSE since one contract is for USD 1000.

30. On 15th December Mr. Arnab bought a April USDINR futures contract which cost him Rs.44000. Each USDINR futures contract is for delivery of USD1000. The RBI reference rate for final settlement was fixed as 44.10. How much profit/loss did he make?

31. In a system of 10 currencies, if one currency is selected as the vehicle currency and used for all transactions, there would be a total of ______ currency pairs or exchange rates to be dealt with.

32. ___________ reduces both return and risk but in such a way that risk is reduced more than return so that risk is minimized per unit return.

33. If the bond is held until maturity, there will be no price risk because of _______ of bond price at maturity.

34. The Exchange/CC specifies the _________ margin requirements for each futures contract on a daily basis.

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

36. ABC is currently at 5100. An investor feels ABC company will not go beyond 5300 in next three months. He sells two lots of 5100 strike call on ABC company for Rs. 200 a lot. Because of good industrial production data, ABC company rallies to 5200 on the option's expiry day. What is the Profit/ Loss to the investor? (1 lot = 50 shares)

37. The gains or losses arising from trading in Exchange traded derivatives are taxable under the head _______.

38. Impact cost is low when the liquidity in the system is poor.

39. The Exchange imposes stringent penalty on members who do not collect margins from their clients.

40. An index option is a __________________.

41. What is the difference between futures price and spot price known as __________.

42. If the market rate rises, the bond price falls but reinvestment income rises.

43. ______ is mitigated by delivery-versus-payment mode of settlement.

44. _______ have the right to impose additional risk containment measures over and above the risk containment system mandated by SEBI.

45. The minimum trading increment or price differential at which traders are able to enter bids and offers is called as ____________.

46. For zero-coupon bond, yield to maturity is the true measure of return because there is _______.

47. The IIP numbers are reported using __________ as the base year for comparison.

48. Which of the following cannot be an underlying asset for a FINANCIAL derivative contract?

49. Rohit sells USD-INR 6 contracts (1 lot= USD 1000) at Rs. 46.2550 per unit. If tick size is Re.0025 how much he will gain or lose if there is upward movement of 6 ticks?

50. Secured premium notes are an example of __________.