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

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

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

4. Fund created to take care of legitimate investment claims

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

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

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

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

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

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

11. 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?

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

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

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

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

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

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

18. 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.

19. 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?

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

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

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

23. Client can place order through following options ________?

24. Which of the following has higher credit risk?

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

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

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

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

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

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

31. 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?

32. Investors can have grievances against _______________.

33. Which of the following is interest rate derivative?

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

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

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

37. Arbitration is a ________ judicial process.

38. 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 _________.

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

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

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

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

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

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

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

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

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

48. Total number of derivatives contracts outstanding is called __________

49. Credit spread is the price of ___________.

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