NISM Series XIII Mock Test 9

NISM Series XIII Exam | Mock Test 9

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1.

What is the Market-Wide Position Limit (MWPL) for futures and options contracts on individual securities?

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2. The cost of equity can be estimated or derived from capital asset pricing model.

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3.

A trading member buys 70 lots of GBPINR one month future on day 1 at 91.50 and sells 80 lots of the same contract on the same day at 91.60 in his proprietary book. The settlement for the day was at 91.20. What would be the mark to market margin on the open position in INR?

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4. As a trader you believe EURUSD will move from 1.38 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?

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5.

How can a person, who is holding a fixed income security, hedge his position?

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6.

Yield curve spread risk arises when the term structure shift is

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7.

What is the breakeven point (BEP) for a call option with a strike price of 17500 and a premium of 185?

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8. __________ products are nothing but a combination of different derivative products.

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9.

For every 100 ticks the price of a government bond futures contract moves, the contract value changes by Rs ___

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10. If a member has payable obligation towards pay-in as well as margins, then ________.

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11. For equity derivatives, carrying cost is the interest paid to finance the purchase less (minus) dividend earned.

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12. The OTC market offers both standardized vanilla products and customized called exotic products.

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13. The _______ must ensure that the clients fill-up the KYC form and submit it to them.

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14. The price operating range for 6 year bond futures is plus or minus _______ of the base rate.

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15. Long Straddle is a strategy with __________.

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16. The initial margin for calendar spread on MIBOR futures beyond 3 years shall be _______.

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17. Fair value in the context of derivative contracts represents the ___________.

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18. In case of commercial paper, the minimum and multiple of issue is ______.

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19. If the underlying hedged item is a highly forecast transaction the profit or loss on the hedging derivative is stored in _______ until the forecast transaction materializes.

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20. Position Limit for a Bank TM on JPYINR is ____________.

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21. The purchase of a share in one market and the simultaneous sale in a different market to benefit from price differentials is known as ____________.

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22. The price which option buyer pays to option seller to acquire the right is called as ___________.

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23. _________ is the rate of change of the value of the portfolio with respect to the passage of time with all else remaining the same.

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24. Permission from Exchange is not required for a sub broker to advertise his business.

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25. Currently, American options are allowed in currencies in India.

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26. The Member shall maintain a _______ record of having made such margin calls and that the clients have not complied with the same.

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27. all contracts involvi_______ shall ensure that their short positions at all stock Exchanges across ng Indian Rupee do not exceed USD 100 million.

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28. __________ net worth shall be computed as liquid assets less initial margin and extreme loss margin payable at any point in time.

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29. _______ will depend on the timing of expected receipt or payment of foreign currency.

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30.

A company expects to receive USD 100,000 in 2 months. Current USDINR is 83.40. To hedge, it sells USD futures at 83.60. If INR appreciates to 83.00 at expiry, what is the profit?

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31. A calendar spread contract in index futures attracts ___________.

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32.

A trading cum clearing member has a client X who has purchased and sold 1000 and 2000 contracts respectively in the June series of ABC futures ( contract multiplier 50 ). The trading cum clearing member has purchased and sold 2200 and 1500 contracts respectively on his own account in the same June series of ABC futures ( contract multiplier 50 ). What is the outstanding liability ( open position ) of the member towards clearing corporation in the number of contracts?

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33.

A trading member has two clients in currency futures segment and one client in currency option segment. At the end of a trading day, one of the clients in currency futures segment has 5000 USD short position and the other client has 4000 USD long position. Additionally, the currency option client has 2000 USD long position. What is the gross open position for the trading member for the purpose of monitoring open position?

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34. Proprietary position : Buy 20*1000*40.0000 indicates :

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35. On the derivative exchanges, all the orders entered on the Trading System are at prices exclusive of brokerage.

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36. Short Hedge is a transaction when the hedge is accomplished by going short in futures market.

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37. SEBI-registered brokers can introduce DMA facility to their clients after obtaining permission from respective ____________.

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38.

If 1 year interest rate is 2% in USA and 10% in India, and USDINR is at 44, what is the expected 6 month future rate?

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39. Securities Transaction Tax (STT) in case of Sale of an option in securities is payable by_______.

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40. When the trading member does Trade in his client A/c it is entered as _________.

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41.

If the annual interest rate is 5% and the dividend yield on a stock is 2%, what is the six-month futures price of a stock currently trading at Rs 500 in the spot market?

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42.

Rohan buys GBPINR futures at various price points over two days. He buys 20 lots at 80.00 at 11.30 am and 15 lots at 80.25 at 1.30 pm on Day 1. On Day 2 he buys 25 lots at 80.50 at 11 am and 10 lots at 80.40 at 2 pm. On Day 3 he sells 10 lots at 79.90. Calculate his profit/loss on the squared off position using FIFO method

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43. The current yield cannot be considered as true return because it does not consider the ________.

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44. ___________ are derivative contracts which derive their value from an underlying index.

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45.

If futures price is higher than spot price of an underlying asset, this is known as

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46.

Assume the price of government bond futures is 115, find market value of 1 contract?

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47.

In a payoff graph, on which axis is the price of underlying asset plotted?

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48. An investor buys a 4 lots of Nifty at Rs. 10,500 each. He sells 2 lots at Rs. 10,550 and carries 2 lots for next day. On that day, Nifty futures closes at Rs. 10,600. What is his total profit/Loss including mark to market profit/Loss? Nifty lot size is 75 .

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49. A ________ is allowed to execute trades on his own account as well as on account of his clients.

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50. A ___________ is a contract where a trader buys/sells a particular month contract and sells/buys of the same contract of a different month.

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The average score is 66%

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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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