NISM Series XIII Mock Test 17

1. Which of the following statement is true about market index?

2. Individuals can become members in Currency derivatives segment.

3. The extent and availability of collateral should be factored in while arriving at the fair value of a _______ contract.

4.

When using a bullish vertical spread with call options, the trader will typically _____

5. Derivative losses can be carried forward for a period of ______ assessment years.

6. What is the final settlement rate in case of 91-day treasury bill?

7. A Call Option is said to be In-the-Money if _________.

8. Contract cycle expires on _________.

9. The _________ shall record his reasons for treating any transaction or a series of transactions as suspicious

10. An open interest is the total number of contracts traded in a month for an underlying asset.

11. The ___________ are normally for spot deliveries, and are considered as base rate.

12. __________ does clearing, settlement and risk management for trades executed on Exchanges.

13.

How are futures contracts on 91 days t-bills settled?

14. You own a portfolio of various stock for long term but currently you are unsure of the market. The best possible action to safe guard your investments is :

15. The clearing member's liquid net worth after adjusting for the initial margin and extreme loss margin requirements must be at least Rs. 50 lakhs at all points in time.

16. The inter-commodity spread consists of buying futures on one underlying and selling futures on another for the ________.

17.

Hedging for multiple bonds in a portfolio can be done by using _____

18. The amount of asset that has to be delivered under one contract is the _______.

19. The operating range applicable in the stock futures is _____.

20. _______ involves taking high risk in expectation of desirable profit.

21.

Which of the following derivatives have the largest market size globally?

22. ______ is defined as coupon divided by bond price.

23.

What is the specified face value amount for one lot of treasury bill futures that can be traded?

24. Trading/Clearing Members can be in both governing councils of Currency derivatives segment and equity derivatives segment.

25.

For interest rate derivatives transactions executed on Indian Stock Exchanges, stamp duty is levied on ____

26. The price of Base Currency (BC) is expressed in Quoting Currency (QC) in the forex market

27.

What term describes a trade that decreases a client’s existing open position in a contract?

28. _________ are hybrid assets and derived by combining a bond with derivative product option whose underlying is one of the physical assets.

29. Expiry date i.e. the last trading day will be two business days prior to the Value date / Final Settlement Date.

30. When you sell a PUT option, you expect _________.

31. The prices or the yields of deliverable bonds do not change during trading hours in case of CTD bonds.

32. Arbitrageurs lock in a profit by simultaneously entering opposite side transactions in two or more markets.

33.

With respect to investments, what does Diversification means?

34. On exercise, the _________ gives its holder a positive cash flow.

35. Long hedge is the transaction- when we hedge our position in futures market by going long in cash market.

36. A trader executes following currency futures trade: buys one lot of USD/INR, sells one lot of JPY/INR. What view has he executed?

37. The 'Equity Index Option Premium Account' and the 'Equity Stock Option Premium Account' should be shown under the head _________.

38. The carry price of the contract changes every day because of the _______.

39.

Assuming a base price of 100 and a 1% trading range, what is the permissible opening price for the day?

40. __________ assets are segregated as cash component and non-cash component.

41. The client is expected to sign on the ____________ of the contract note.

42.

A ____ is where a trader buys a particular month contract ( futures or options ) and sell ( i.e. take an opposite position ) of the same contract of the different month

43. How many USDINR Futures contracts can be made available for trading at a given time?

44.

Which of the following complaints can be taken up by the exchange for redressal?

45.

For the purposes of determining the expiry of cash settled single Government of India bond futures contracts, identify which of the following constitutes a three quarterly month?

46.

On what basis are treasury bill futures contracts are traded?

47. The market value is Rs 5.74 lakhs and its modified duration is 6.28. If the yield changes by one basis point, the market value will change by _______.

48. __________ can be readily computed from the market price of zero-coupon bond.

49. Futures markets are designed to solve the problems that exist in the ____________.

50. The ___________________ of the option is required to pay initial margin for entering into the option contract.