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Q61. You are a speculator. You predict the market will go up in the near future and want to take
advantage of it. You would. [1 Mark]
a) Buy Nifty futures
b) Sell securities in the cash market.
c) Sell Nifty futures
d) None of the above.
Q63. Which of the below listed factors does not affect the price of an option on a stock? [1 Mark]
a) Stock price
b) Volatility
c) Dividend
d) Liquidity of stock in the underlying cash market
Q64. Trading member Shantilal took proprietary purchase in a March 2000 contract. He bought
1500 units @Rs.1200 and sold 1400 @ Rs. 1220. The end of day Settlement price was Rs. 1221.
What is the outstanding position on which initial margin will be calculated? [1 Mark]
a) 300 units
b) 200 units
c) 100 units
d) 500 units
Q65. Initial margin is collected to_______ [1 Mark]
a) make good losses on the outstanding position
b) make good daily losses
c) safeguard against potential losses on out standing positions
d) none of the above
Q67. Daily Mark to Market settlement of futures takes place on _____ basis. [1 Mark]
a) T+0
b) T+3
c) T+5
d) T+1
Q68. Immediate or cancel is an order which will automatically ____ in F & O segment of NSEIL.
[1 Mark]
a) Be matched because it being a preferential order
b) be cancelled if it is not matched
c) Get stored in the system for matching, immediately and in its entirely. If not executed
immediately
d) cancel the unmatched portion of the Order quantity.
Q72. Futures contracts can be reversed with any member of the derivatives segment of the
exchange. [1 Mark]
a) True
b) Cannot be reversed
c) Cannot be reversed for the next one month.
d) False
Q73. A call option at a strike of Rs. 176 is selling at a premium of Rs.18,. At what price will it break
even for the buyer of the option?. [1 Mark]
a) 196
b) 187
c) 204
d) 194
Q75. If you have bought a futures contract and the price drops, you will be making a profit. [1
Mark]
a) True
b) False
Q76. If the price of the underlying asset rises sharply after the initiation of a futures contract [1
Mark]
a) The long position becomes profitable
b) The long position becomes unprofitable
c) The short position becomes profitable
d) None of the above.
Q77. You can buy stock futures in India regardless of whether you own the shares or not. [1 Mark]
a) True
b) False
Q78. A fund manager is bullish on the market. What should be his course of action? [1 Mark]
a) Buy the index future
b) Sell the index future
c) Sell his entire portfolio
d) None of the above.
Q79. In case of futures, the initial margin is paid only by the seller and not the buyer. [1 Mark]
a) True
b) False
c) True only in Mumbai
d) True only in Delhi.
Q81. The securities which are not delivered in the clearing house during pay-in, are purchased by
the clearing house from the market. The process is known as [1 Mark]
a) Close-out
b) Penalty
c) Auction
d) Upla badla
Q82. If the annual risk-free rate is 10% then the ‘r’ used in the Black-Scholes formula should be
[1 Mark]
a) 0. 095
b) 0.12
c) 12
d) none of the above
Q86. With decrease in strike price, the premium on Call decreases. [1 Mark]
a) True
b) False
c) True only in USA
d) True only
Q87. Time value and intrinsic value together comprise option premium. [1 Mark]
a) True
b) False
Q88. The buyer of an option can lose not more than the option premium paid [1 Mark]
a) True
b) False
c) True only in USA
d) True only in Japan
Q89. The bid is the price at which market maker is prepared. [1 Mark]
a) To buy.
b) To sell
c) To remain idle
d) None of the above.
Q91. An investor is bearish about ABC Ltd. and sells ten one-month ABC Ltd. Futures contracts at
Rs.5,00,000. On the last Thursday of the month, ABC Ltd. closes at Rs.510. He makes a
_________. (assume one lot = 100) [1 Mark]
a) Profit of Rs. 10,000
b) loss of Rs. 10,000
c) loss of Rs. 5,100
d) profit of Rs. 5,100
Q93. Who will be eligible for clearing trades in stock futures? [1 Mark]
a) All Indian citizens
b) All members of the BSE
c) Only members who are registered with the derivatives segments as Clearing Members
d) all of the above.
Q94. The daily settlement price for Index futures shall be decided by [1 Mark]
a) SEBI
b) the Reserve Bank of India.
c) The clearing corporation / house
d) none of the above.
Q96. Initial margin is set up taking into account the volatility of the underlying market. Generally
higher the volatility, higher is the initial margin. [1 Mark]
a) True
b) False
Q99. The beta of A.S.STEELS is 1.3. A person has a long A.S.STEELS position of Rs. 200,000
coupled with a short Nifty position of Rs.100,000. Which of the following is TRUE? [1 Mark]
(a) He is bullish on Nifty and bearish on A.S.STEELS
(b)He has a partial hedge against fluctuations of Nifty
(c) He is bearish on Nifty as well as on A.S.STEELS
(d) He has a complete hedge against fluctuations of Nifty
1 A 21 A 41 C 61 A 81 C
2 A 22 A 42 A 62 C 82 A
3 B 23 A 43 A 63 D 83 B
4 A 24 C 44 C 64 C 84 A
5 B 25 D 45 B 65 C 85 B
6 D 26 B 46 B 66 A 86 B
7 A 27 A 47 B 67 D 87 A
8 C 28 B 48 A 68 D 88 A
9 A 29 D 49 B 69 B 89 A
10 D 30 D 50 A 70 B 90 D
11 B 31 C 51 A 71 C 91 B
12 A 32 A 52 B 72 A 92 D
13 A 33 B 53 A 73 D 93 C
14 A 34 C 54 A 74 A 94 C
15 B 35 A 55 B 75 B 95 B
16 B 36 A 56 C 76 A 96 A
17 B 37 D 57 A 77 A 97 A
18 A 38 C 58 A 78 A 98 B
19 A 39 C 59 B 79 B 99 B
20 C 40 B 60 A 80 D 100 D