NISM Series XIII Mock Test 17

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

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

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

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

5.

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?

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

7.

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

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

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

10.

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

11.

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

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

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

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

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

16.

On what basis are treasury bill futures contracts are traded?

17. Contract cycle expires on _________.

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

19.

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

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

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

22.

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

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

24. Individuals can become members in Currency derivatives segment.

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

26. 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.

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

28.

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

29. 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 _______.

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

31.

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

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

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

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

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

36.

With respect to investments, what does Diversification means?

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

38.

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

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

40.

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

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

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

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

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

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

46. 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 :

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

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

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

50.

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