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

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

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

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

5. Which of the following is interest rate derivative?

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

7. Total number of derivatives contracts outstanding is called __________

8. Fund created to take care of legitimate investment claims

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

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

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

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

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

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

15. Arbitration is a ________ judicial process.

16. The loan rate is typically linked to the lending bank's _______.

17. 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.

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

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

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

21. 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?

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

23. Client can place order through following options ________?

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

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

26. Which of the following has higher credit risk?

27. Investors can have grievances against _______________.

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

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

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

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

32. 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?

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

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

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

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

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

38. 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?

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

40. Credit spread is the price of ___________.

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

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

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

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

45. 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 _________.

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

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

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

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

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