NISM Series XIII Mock Test 19

1. You already have a short futures position in USDINR at 44.5 and you are keen to reduce losses on this position if USDINR strengthens beyond 44.5 i.e., goes above 44.5. As stated above, you are not keen to pay any upfront cash to buy protection. What can you do?

2. Currently American options are not allowed in currencies in India.

3. The maximum penalty for any member or client who increased the existing positions or created a new position in the security under Future & Option ban is __________.

4. If the current price of bond is 101.7125 and its modified duration is 1.71, then price value of basis point will be ________.

5. A penalty or suspension of registration of a stock broker from derivatives exchange/segment under the SEBI (Stock Broker) Regulations, 1992 can take place if _______________.

6. The _______ deviation is calculated using the Exponential Weighted Moving Average (EWMA).

7. Market risk or systematic risk can be reduced by using index derivatives.

8. A _______ is an agreement made through an organized exchange to buy or sell a fixed amount of a commodity.

9. When a client defaults in making payments in respect of a daily settlement, ______________.

10. What is a contract size?

11. Find out the CROSS rate for GBP/AUD. Details : GBP/USD - 0.9891/0.9894,AUD/USD - 1.2287 /1.2289.

12. If USD interest rate were to remain stable and INR interest rate were to go up, then which position will be profitable _______.

13. Theta is ___________.

14. Who decides on the tick size of a contract ?

15. The relationship between bond price and yield to maturity is _______.

16. Government securities & T-Bills can be considered as _________ of collateral deposits given to clearing corporation by its members.

17. In the Arbitration procedure, the arbitrator conducts the arbitration proceeding and passes the award normally within a period of _______months from the date of initial hearing.

18.

What is the breakeven point (BEP) for a call option with a strike price of 17500 and a premium of 185?

19.

If the annual interest rate is 5% and the dividend yield on a stock is 2%, what is the six-month futures price of a stock currently trading at Rs 500 in the spot market?

20. In OTC currency derivative market in India, is it possible for a corporate to write an option and receive a net premium?

21. Bearish Vertical Spreads can be implemented by the use of _________.

22. A trader in India expects international gold prices to appreciate from USD 1500 per ounce to USD 1800 in next six months. To benefit from the view, he buys 30 grams of gold at Rupees 22,000 per gram and also sold 6 month USDINR futures at 46. After six months, gold prices appreciated to USD 1800 per ounce and the trader sold gold at Rupees 24,000 per gram and unwinds currency futures contract at 44. Assuming 1 ounce is equal to 3 grams, how many lots of currency futures would he have used to hedge the currency risk and how much was the real return for the investor?

23. Traditionally, the _______ serves the function of production-consumption in international trade.

24. Gaurav Buys USD-INR 16 contracts (1 lot= USD 1000) at Rs. 49.25 per unit. If tick size is Re.0025 how much he will gain or lose if there is upward movement of 10 ticks?

25. A person has invested USD 100,000 in US equities with a view of appreciation of US stock market. In next one year, his investments in US equities appreciated in value to USD120,000. The investor decided to sell off his portfolio and repatriate the capital and profits to India. At the time of investing abroad the exchange rate was 44.5 and at the time of converting USD back into INR, he received an exchange rate of 46. How much is the return on investment in USD and in INR respectively?

26. When the index future is used to hedge against the market risk on a portfolio, then it can be called as a cross hedge.

27.

What did the Dr. L. C. Gupta committee recommend in its report?

28. Tick size for Nifty futures is Rs 0.05.

29. The computation of turnover is a very important factor as the applicability of _________ is determined on the basis of turnover.

30.

What has contributed significantly to the growth of OTC derivatives market?

31. Final Settlement rate would be the _______ Reference rate for the date of expiry.

32. The margins shall be collected /adjusted from the _________ assets of the member on a real time basis.

33. Authorised persons cannot collect commission directly from the clients.

34. A TM's open position is the ____________.

35. The minimum net worth for the trading membership on the interest rate futures as of the latest balance sheet should be _______ for clearing member.

36. The ___________ has a strong international presence and second-largest and second-most traded currency in the international markets.

37. You have taken a short position of one contract in June XYZ futures (contract multiplier 50) at a price of Rs. 3,400. When you closed this position after a few days, you realized that you made a profit of Rs. 10,000. Which of the following closing actions would have enabled you to generate this profit? (You may ignore brokerage costs)

38.

Profits from derivatives transactions for Indian investors are taxed as: __________

39. ___________ is the last day on which the futures contract will be traded, at the end of which it will cease to exist.

40. Clearing Corporation receives the details of trades and prices from the ___________.

41. 2 Month Calendar Spread Margin for EURINR is _________.

42.

Operational risks in a financial context can include losses due to which of the following?

43. You are the owner of a 15 million portfolio with a beta 1.0. You would like to insure your portfolio against a fall in the index of magnitude higher than 10%. Spot Nifty stands at 9000. Put options on the Nifty are available at three strike prices. Which strike will give you the insurance you want?

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

45. Convenience return for a commodity is likely to be different for different people, depending on the way they use it.

46. The maximum loss limit, which the Risk Management system allows a member to sustain on a real-time basis, is ______ of the total deposit.

47. _________________ is an option that would lead to a negative cash flow if it were exercised immediately.

48.

____ are derivatives with underlying as theoretical bond and not a physical bond

49. For small value transactions, banks publish a standard price for the day called as card rate.

50.

Yield curve spread risk arises when the term structure shift is