1. The concept of “accrued interest” applies to which of the following?

2. In the clearing corporation, clearing is carried out by a process called __________
netting?

3. Due to denial of matched orders by client/s, which type of risk arises?

4. The difference between option premium and intrinsic value is __________.

5. Person goes short in a futures contract at Rs.100 and on expiry underlying price is Rs.101, he will ________.

6. Loss on derivative transactions which are carried out in a “recognized stock exchange”
can be carried forward for period ________ assessment years

7. Client can place order through following options ________?

8. Position limit for EURUSD at trading member level is?

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

10. Loss on derivative transactions which are carried out in a “recognized stock exchange”
can be set off against any other income during the year except _________.

11. If you expect the USD will appreciate against INR in future, today you should_________.

12. The price which option buyer pays to option seller to acquire the right is called as ________.

13. If the base rate of GBPINR one month future is Rs. 100 then its operating range will be
_______.

14. A ________ order is classified as price related condition.

15. The price which option buyer pays to option seller to acquire the right is called as
________.

16. Fund created to take care of legitimate investment claims

17. Execution of Power of attorney by the client in favour of stock broker is _________.

18. Usually, income from Exchange traded derivatives is treated as _________.

19. As a Risk Reduction Measure, all unexecuted orders shall be cancelled once stock
broker breaches ____ collateral utilization level.

20. Guidance Notes on Accounting for Derivatives Contract recognize following type of
hedging for hedge accounting.

21. Which of the following segments of market participants are allowed to become
member of Currency Derivatives of Exchange?

22. Which of the following is the last trading day for cash settled 10-year bond futures?

23. Which of the following accounting standards of Institute of Chartered Accountants of
India (ICAI) defines the accounting for derivatives?

24. Interoperability of clearing corporation framework is allowed all the products
available in the Indian securities markets, EXCEPT:

25. Which of the following segments of market participants are allowed to trade in
currency futures?

26.  Daily Mark to market settlement of Exchange traded currency future contract is
…..........

27. A client buys a USD call option at strike of 75.5 and pays a premium of INR 0.3. What
would be the breakeven point for the transaction?

28. Which of the following is the role of derivatives?

29. What is the settlement method for 91-day bill futures?

30. Option buyer faces ________ risk and option seller faces __________ risk.

31. 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
USD 120,000. 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 74.5 and
at the time of converting USD back into INR, he received an exchange rate of 76.00.
How much is the return on investment in USD and in INR respectively?

32. If the coupon of the bond increases, its Modified Duration will __________. (Other things remaining constant).

33. __________ take position in Interest Rate Derivatives to reduce interest rate risk.

34. What is the Base Minimum Capital requirement specified by the SEBI for only
Proprietary trading without Algorithmic trading (Algo)?

35. If participant buy 10 lot of single bond futures at Rs. 99, then contract value _________.

36. _______ are derivatives with underlying as theoretical bond and not a physical bond.

37. Subsequent to KYC, broker has to upload the KYC information in following system

38. Arbitration is a ________ judicial process.

39. In OTC market, one month USDINR is quoting at 74.75/75.00 and futures for same
maturity is quoting at 75.50/75.60. Which of the following describes possible
arbitrage trade and possible arbitrage profit per USD if the arbitrage trade is carried
until maturity?

40. Investors can have grievances against _______________.

41. A Buy or a Sell order(s) which is/ are lying unmatched in the order book are known as
________________.

42. An option is _________, if on exercising it, the option buyer gets positive cash flow.

43. If the long-term rate is 10% and short-term rate is 8%, the shape of term structure of rates is ___________.

44. Which of the following has higher credit risk?

45. A person has invested INR 100,000 in an Indian corporate bond for a year giving a
return of 16% in one year. The person plans to use the proceeds from the maturity of
corporate bond to fund his son's education on US. At the time of investing in the
corporate bond, USDINR spot rate was 70 and one year premium was 4%. The person
decides to hedge currency risk using USDINR one year futures. At the end of one year,
how many USD can this person remit to his son.

46. Which of the following acts is mainly responsible for governing the securities trading
in India?

47. Credit spread is the price of ___________.

48. Which of the following is interest rate derivative?

49. Total number of derivatives contracts outstanding is called __________

50. In Bullish vertical spread using put strategy, trader _________?