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

2. The exchanges are responsible for specifying _______.

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

4. Order lying unmatched in the system is called _____________.

5. The exposure of the banks, on their own account, in the currency futures market shall form part of the _______________.

6. What is a contract size?

7. During the process of novation, the _______ becomes the buyer to the seller, and the seller to the buyer.

8. The amount that must be deposited in the margin account at the time a futures contract is first entered into is known as _________.

9. 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?

10. Mr. Ketan wants to shift funds from Indian Rupees to Philippine Pesos. He sells INR for US Dollars and then sells the US Dollars for Pesos. In this transaction, US Dollar is working as:

11. A company, which is due to receive a payment in a foreign currency on a future date, enters into a forward transaction with a bank agreeing to sell the foreign currency and receive a predetermined quantity of domestic currency. This is an example of Hedging.

12. A ______________ position is created by selling a call and a put option of same strike.

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

14. Unsystematic risk can be reduced by portfolio diversification.

15. Naked position in futures market simply means a long or short position in any futures contract without having any position in the underlying asset.

16. Settlement Price of Daily mark to market settlement will be the closing price of the futures contracts for the trading day and the final settlement price shall be the RBI reference rate for last trading date of the contract.

17. 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?

18. As a trader you believe EURUSD will move from 1.58 to 1.44 in next 2 months. Which of the following would you do to execute this view using currency futures contract of EURINR and USDINR?

19. Covered calls carry greater risk than Naked Calls - True or False ?

20. All derivative contracts should be recognised on the balance sheet and measured at __________ value.

21. The market wide limit of open position on futures and option contracts on a particular underlying stock should be _________.

22. One of the key difference in OTC and Exchange traded USD-INR currency option market is related to ___________.

23. Find out the Intrinsic value of a CALL option of ABC. Spot is Rs 2000. Strike is Rs 2020.

24. If the interest rate goes up, the price of rate-sensitive instruments also increases.

25. In a two way quote, the prices quoted for buying is called ______ and the price quoted for selling is called as _________.

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

27. The amount of cash lent is less than the market value of the security, and the difference is called __________ (in other markets).

28. Specific risk (A component of Price Risk) cannot be completely avoided while investing in securities.

29. A trading member has two clients in currency futures segment and one client in currency option segment. During the day, each of the clients in currency futures segment sold 6000 USD and bought 3000 USD. At the end of a trading day, each of the client in currency futures segment have 6000 USD short position and 3000 USD long position. Additionally, the currency option client has 3000 USD long position. What is the gross open position for the trading member for the purpose of monitoring open position

30. Which user is at the lowest level in the heirarchy of trading firm?

31. If the coupon is linked to a specified ________, then only its timing but not its amount is known in advance.

32. Initial margin collection is monitored by the _________.

33. Imagine a trader buys a contract (USD 1000 being the value of each contract) at Rs. 42.2500. If he buys 5 contracts and the price moves up by 4 ticks, what will be his profit or loss? (Tick size 0.25 paisa ignore transaction cost)

34. Assume that price of a USD-INR call option is quoted as INR 0.25 / 0.27 (bid price / ask price). Given this quote, at what price could a company buy the call option?

35. _________ involves combination of options having same underlying but different expiries as well as different strikes.

36. What is IOC order?

37. In a system of 100 currencies with no vehicle currencies, potentially there would be ____ currency pairs or exchange rates.

38. Accounting standards like IAS 39 and AS 30 require the ____________ criteria to be satisfied for financial derivatives.

39.  

Rahul owns five hundred shares of ABC Ltd. Around budget time, he gets uncomfortable with the price movements. Which of the following will give him the hedge he desires (assuming that one ABC futures contract = 100 shares) ?

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

41. Position Limit for a Bank TM on EURINR is:

42. Some of the important announcements from central bank meetings are their ___________.

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

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

45. 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?

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

47. Initial margin requirements shall be based on 99% _________ over a one day time horizon.

48. Which is the most active currency pair in the world?

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

50. 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 _______________.