SimplyPaisa.

com
QUESTION BANK
for
NISM Series 8 - Equity Derivatives
Also available Video lessons, Question Bank and Mock Test for NISM
exam preparation for Equity Derivatives Series VIII

Visit http://www.simplypaisa.com/academy/ for more

What is a measure of systematic risk of a security that cannot

be avoided through diversification
A. Delta
B. Gamma
C. Vega
D. Beta
E. I am not attempting this question
ANSWER: D

http://www.simplypaisa.com/academy/

The price per share of the underlying security at which it may

be purchased or sold by the option holder
A. Time value
B. Intrinsic value
C. Premium
D. Strike price
E. I am not attempting this question
ANSWER: D

http://www.simplypaisa.com/academy/

For stop-loss buy order, the trigger price is ______ the limit
price.
A. Less than
B. Greater than
C. Equal to
D. None of the above
E. I am not attempting this question
ANSWER: A

http://www.simplypaisa.com/academy/

The option with strike price worse than the spot price for the
holder of option.
A. In the money (ITM) option
B. At the money (ATM) option
C. Out of the money (OTM) option
D. None of the above
E. I am not attempting this question
ANSWER: C

http://www.simplypaisa.com/academy/

Volatility of prices of the underlying assets and dividend yield

do not affect the option values.

A. TRUE
B. FALSE
C. Neither true nor false
D. Insufficient information
E. I am not attempting this question
ANSWER: B

http://www.simplypaisa.com/academy/

Index Management in BSE is done by

A. NSE indexation team
B. India Index Services and Products Ltd. (IISL)
C. Index Cell
D. Index company
E. I am not attempting this question
ANSWER: C

http://www.simplypaisa.com/academy/

In a business daily to get information about the top gainers in

the futures market, one has to look into the heading
A. Open Interest
B. Positive trend
C. Negative trend
D. Contract details
E. I am not attempting this question
ANSWER: B

http://www.simplypaisa.com/academy/

Clearing corporation
A. Acts as counterparty in every transaction
B. Monitors the market and market participants.
C. Reduces the number of payments due to netting
D. All of the above
E. I am not attempting this question
ANSWER: D

http://www.simplypaisa.com/academy/

For ascertaining 'Fit and Proper person', the SEBI Board may take
into account the following eligibility criteria but not limit itself to
A. Integrity, reputation and character,
B. Absence of convictions and restraints order,
C. Competence including financial solvency and net worth of the
applicant.
D. All of the above
E. I am not attempting this question
ANSWER: D

http://www.simplypaisa.com/academy/

With increase in spot price, price of a call option will

A. Increase
B. Decrease
C. remain constant
D. Insufficient information
E. I am not attempting this question
ANSWER: A

http://www.simplypaisa.com/academy/

Visit http://www.simplypaisa.com/academy/ for more

Courses available
Capital Markets
Equity Derivatives
Mutual Funds
Capital Markets Question Bank
Equity Derivatives Question Bank
Mutual Fund Question Bank
Currency Derivatives Question Bank
Commodities Derivatives Question Bank