NISM Series XIII Mock Test 8

NISM Series XIII Mock Test 8

NISM Series XIII Exam | Mock Test 8

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

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2. RBI guideline on Rupee Interest Rate Derivatives (Reserve Bank) Directions, 2019 permit _______________ to participate in interest rate derivatives contract.

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3. An option is _________, if on exercising it, the option buyer gets negative cash flow.

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4. Participants buy a put option with strike price of 98.50 at a premium of Rs. 0.20. On Expiry the bond price is Rs. 98.50. What is his net pay-off?

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5. Corporate actions are broadly classified under _____________ and _____________.

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6. 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 _________.

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

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8. In the clearing corporation, clearing is carried out by a process called _______ netting.

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9. A _________ is where a trader buys a particular month contract (Futures or Options) and sell (i.e., take an opposite position) of the same contract of a different month.

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10. The position limit is the limit on an investor's share in the total open interest.

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11. If the base rate of Overnight MIBOR futures is 5, then its operating range will be _______.

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12. Time value of an option is _____________.

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13. ____________ are the maximum exposure levels which the entire market can go up to and each trading member or investor can go up to.

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14. Limitation of Interest Rate Derivatives for Hedgers is mainly due to __________.

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

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16. A stock is currently selling at Rs. 165. The put option at Rs. 163 strike price costs Rs.3. What is the time value of the option?

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17. A client can place order in exchange traded interest rate derivatives through _______.

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18. In terms of jurisdiction of regulator, the regulation of interest rate derivatives is similar to that of ___________.

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19. Arbitration is a ________ judicial process.

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20. Horizontal spread is also known as Calendar spread!

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21.

Daily Mark to market settlement of Exchange traded interest rate future contract is __________.

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22. Exchanges provide __________ separately for taking calendar spread combination.

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23.

Insurance companies are allowed to participate in interest rate futures only for _____.

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

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25. _______ is the price that is used to compute the price range for the opening trade on any trading day.

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26. What is the client level position limit in derivative trading?

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27. The underlying super asset class consists of _______.

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

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

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30. The initial margin amount is large enough to cover a one day loss that can be encountered on ________ of the days.

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31. Subsequent to KYC, broker has to upload the KYC information in _______ system.

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32. Hedging for multiple bonds in portfolio can be done by using _________.

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33. In Bullish vertical spread using put strategy, trader _________.

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34. If you expect the interest rate will go up in future, today you should _________.

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35. The difference between the interest rate applicable to a non-sovereign borrowers and corresponding rate for sovereign borrower is called _______.

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36.

Position limits guideline for Exchange traded interest rate derivatives is provided by __________.

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37.

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

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38.

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

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

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

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41.

Assume that on 1st December 2020, USD-INR spot was at 45, premium for January 2021 maturity put option at strike of 45.5 is INR 0.54/0.55 and premium for January 2021 maturity call option at strike of 45 is INR 0.71/0.72. A client executes a trade wherein he buys put at a strike of 45.5 and sells a call at a strike of 45. On expiry the RBI reference rate is 44.75. How much net profit/loss did the client make per USD?

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42.

__________ is the fund created to take care of legitimate investment claims, which are not of speculative nature of the clients of defaulting member.

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43. The ratio of change in delta for a unit change in the price of underlying is called ________.

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

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45. Forex rates can be quoted as spot or, _______ contracts.

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46. When the forex strike rate increases, the put option premium _______.

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47.

Guidance Notes on Accounting for Derivatives Contract recognise following type of hedging for hedge accounting: ____________.

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

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49. Investors can have grievances against _______________.

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50. The yield to maturity assumes that the term structure of zero rates is ______ by using the same rate for all cash flows.

Your score is

The average score is 76%

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This NISM Series XIII mock test will help you familiarize yourself with the exam format, assess your knowledge, and identify areas that may need further study.

Remember that while mock tests can benefit practice, it’s important to understand the concepts and principles behind each question thoroughly.

Good luck with your preparation for the NISM Series XIII (Derivatives) exam!NISM Series XIII mock test

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