1. 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.

2. Nifty and Sensex originally followed which methodology?

3. The most traded currency pair is:

4. At-the-money option means:

5.

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?

6. If an option is exercised, the STT is applicable on:

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

8. Credit spread is the price of ___________.

9. Futures contracts are:

10. What is the settlement method for USDINR futures?

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

12.

A defaulting member's clients’ positions could be transferred to ____________ by the Clearing Corporation.

13.

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

14.

Consider a scenario in which USDINR was quoting as 63.40/63.42 and EURUSD as 1.1450/1.1453 in the morning and by the day end USDINR moves to 63.10/63.12 while EURUSD moves to 1.1420/1.1422. What would best describe the movement of currency during the day?

15.

A trader feels that INR should depreciate against USD in next few months. What currency futures trade will be profitable to him if his views comes correct?

16. The purpose of interest rate swaps is to:

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

18.

An importer takes a long position in USDINR futures contract at a price of 53 by buying 20 lots. At the  expiry, the settlement price is 54.3. how much profit or loss did the importer make?

19. Which user is at the lowest level in the heirarchy of trading firm?

20.

___ is the process of computing open positions and determining mark to market margins

21. In India, currency futures are regulated by:

22. Which currency is considered a ‘safe haven’?

23. In India, index derivatives are available on:

24. When the index future is used to hedge against the market risk on a portfolio, then it can be called as a cross hedge.

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

26. Margin money in futures contracts is meant to:

27.

How are proprietary positions calculated for a Trading Member?

28. Which of the following is a derivative instrument?

29. Order lying unmatched in the system is called _____________.

30. Which of these best defines basis in futures trading?

31. Which one of the following statements is FALSE?

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

33. Margins in 'Futures' trading are to be paid by _______.

34.

Margins across the various clients of a member are collected on a gross basis

35.

A call option gives the buyer the right to buy the underlying at market price

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

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

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

39. Find out the Intrinsic value of a CALL option of ABC. Spot is Rs 2000. Strike is Rs 2020.

40. If Vega is high, then:

41.

Hedging for multiple bonds in a portfolio can be done by using _____

42.

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

43. A derivative derives its value from:

44.

Assume that the one-year interest rate is 1% in US, 2% in UK and 7% in India. If current GBPINR spot rate is 91.60, what would be the one-year future rate of GBPINR?

45. The maximum loss in buying a call option is:

46.

At 11 am RBI announced the credit policy and a deduction in interest rates. Generally such a step will lead to ______ of rupees

47.

Identify the contract which is cleared and settled bilaterally

48. If implied volatility increases, which of the following increases in value?

49. Which of the following is NOT an example of a derivative?

50. A speculator's aim in derivatives is to:

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

52. If a put is bought at ₹10 premium with a strike of ₹100 and spot is ₹85 at expiry, profit =

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

54.

When a client defaults in making payments in respect of a daily settlement, the contract is closed out. The amount not paid by the client is adjusted against the ___

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

56. Put option is in-the-money when:

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

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

59.

Regulations on buying and selling of T bills and T bond futures for NRIs and FII investors?

60.

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?

61. Maximum loss for a short straddle is:

62. Initial margin requirements shall be based on 99% _________ over a one day time horizon.

63. Which of the following instruments is used for hedging index exposure?

64.  What best describes a derivative?

65. Total number of derivatives contracts outstanding is called __________

66. Which category of market participants seeks to reduce risk exposure?

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

68. Tick size for Nifty futures is Rs 0.05.

69.

Person goes short in a GBPINR futures contract at Rs.99.75 and on expiry GBPINR reference rate is Rs. 100.75, he will ________?

70. Market risk or systematic risk can be reduced by using index derivatives.

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

72. Assume you are an exporter, and you want to sell USD that you have received as
export remittance. The bank quotes a price of 75.10 / 75.12 for USDINR. At what price
can you sell one unit of USD?

73.

For the open positions on last trading day, the seller must notify the Clearing Corporation his intention to deliver by the close of ____

74.

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

75. In case of Clearing Member default, which funds are used first?

76. A call option gives the holder the:

77. The initial margin is collected to:

78.

A Professional Clearing Member of derivatives segment _______

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

80.

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

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

82. Unsystematic risk can be reduced by portfolio diversification.

83. Which Greek indicates the impact of time decay on an option?

84. Hedging using futures helps to:

85. Which of these is true about a European Option?

86. Which of the following is true?

87. Mark-to-market margin is calculated:

88.

You sold one XYZ Stock Futures contract at Rs. 278 and the lot size is 1,200. What is your profit (+) or loss (-), if you purchase the contract back at Rs. 265?

89. A trader shorted a future at ₹1,000. Price rose to ₹1,050. The loss is:

90. If an Option has a high Gamma, what can be said about Option’s Delta?

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

92.

What is the net payoff for Ms. Sakshi, who purchased a Rs 21.50 strike call option for Rs 0.20, if the underlying bond price closes at Rs 21.70 on the expiry date?

93. Which of the following has higher credit risk?

94.

Limitation of Interest Rate Derivatives for Hedgers is mainly due to ____

95. Which of the following qualifies as Liquid Assets for margin?

96.

Execution of Power of attorney by the client in favor of stockbroker is _____

97.

A naked position involves holding an equivalent position in the underlying asset

98. SEBI was established under which year’s Act?

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

100. Operational risks include losses due to ____________.

101.

All the 50 stocks of NSE NIFTY index are equally weighted while calculating the index.

102.

You expect GBP/USD to rise from 1.63 to 1.68. How should you trade GBP/INR & USD/INR futures?

103. A put option becomes profitable when:

104. The ___________ has a strong international presence and second-largest and second-most traded currency in the international markets.

105. As a trader you believe EURUSD will move from 1.58 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?

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

107.

According to the Securities Contracts (Regulation) Rules, 1957, what is the minimum age for an individual to become a trading member?

108.

The market value of one contract is 2,000 times the quoted price and the market price is 106.10, the face value of 200,000. Compute the market value.

109. Index derivatives are based on:

110. A covered call strategy involves:

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

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

113. Cost of carry includes:

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

115. What is “Impact cost” in the context of an index?

116. Profit for call option buyer =

117. Futures trading helps in:

118. Derivative transactions before FY 2005–06 were considered:

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

120. Intrinsic value of a call option =

121. State whether TRUE or FALSE: Impact cost is low when the liquidity in the system is poor.

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

123. A trader sells a future and buys the same stock. He is:

124. Following derivatives contracts are traded only on Exchanges?

125. A penalty or suspension of registration of a stock broker from derivatives exchange/segment under the SEBI (Stock Broker) Regulations, 1992 can take place if _______________.

126.

The lot size for EURINR futures contract is

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

128.

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?

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

130. Which act empowers SEBI to regulate securities markets?

131. AML stands for:

132. Which organization guarantees financial settlement in derivatives?

133. Mark-to-market losses are settled:

134. In an interest rate swap, the floating leg is typically tied to:

135. Which is the most active currency pair in the world?

136. The minimum net worth required for a Clearing Member is:

137. The counterparty risk in exchange-traded derivatives is borne by:

138.  Which of the following is a non-deliverable forward (NDF)?

139. Exposure margin is collected for:

140. Clearing members are responsible for:

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

142.

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

143. Which of these is NOT a characteristic of a forward contract?

144.

A ________ order is classified as price related condition.

145. Option premium increases with:

146. Which one is true about SEBI’s regulation on derivatives?

147.

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?

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

149. Which of the following is true about put options?

150.  

Rahul owns five hundred shares of ABC Ltd. Around budget time, he gets uncomfortable with the price movements. Which of the following will give him the hedge he desires (assuming that one ABC futures contract = 100 shares) ?