NCFM Derivatve Qts

1 Swaps can be regarded as porLfollos of ________
(a) luLure ConLracLs

(b) CpLlon ConLracLs
(c) Call CpLlons
(d) lorward ConLracLs
(e) l am noL aLLempLlng Lhe quesLlon d
2 A sLock ls currenLly selllng aL 8s 163 1he puL opLlon aL 8s 163 sLrlke prlce cosLs 8s
3 WhaL ls Lhe Llme value of Lhe opLlon?
(a) 8s 3
(b) 8s 2
(c) 8s 1
(d) 8s 130
(e) l am noL aLLempLlng Lhe quesLlon a
3 LLAS have a maLurlLy of upLo _________
(a) one year
(b) Lhree years
(c) Len years
(d) Lhree monLhs
(e) l am noL aLLempLlng Lhe quesLlon b
4 WhaL ls Lhe ouLsLandlng poslLlon on whlch lnlLlal margln wlll be levled lf no proprleLary
Lradlng ls done and Lhe deLalls of cllenL Lradlng are one cllenL buys 300 unlLs [ 1260
1he second cllenL buys 900 unlLs [8s1233 and sells 1000 unlLs [8s1260?
(a) 1900 unlLs
(b) 2400 unlLs
(c) 300 unlLs
(d) 600 unlLs
3 A payer swapLlon ls an opLlon Lo pay ______ and recelve ______
(a) floaLlng flxed
(b) lnLeresL lnLeresL
(c) flxed floaLlng
(d) opLlons fuLures
(e) l am noL aLLempLlng Lhe quesLlon c
6 lorward conLracLs are ________ conLracLs
(a) MulLllaLeral
(b) 1rllaLeral
(c) luLure
(d) 8llaLeral
7 ?ou are Lhe owner of a 3 mllllon porLfollo wlLh a beLa 10 ?ou would llke Lo lnsure
your porLfollo agalnsL a fall ln Lhe lndex of magnlLude hlgher Lhan 10 SpoL nlfLy
sLands aL 4000 uL opLlons on Lhe nlfLy are avallable aL Lhree sLrlke prlces Whlch
sLrlke wlll glve you Lhe lnsurance you wanL? 4000*10400
(a) 3870 40004003600
(b) 3840
(c) 3600
(d) none of Lhe above
8 A recelver swapLlon ls an opLlon Lo recelve ______ and pay ______
(a) flxed floaLlng
(b) floaLlng flxed
(c) lnLeresL lnLeresL
(d) opLlons fuLures
9 1he markeL lmpacL cosL on a Lrade of 8s 4 mllllon of Lhe S Cnx nlfLy works ouL Lo
be abouL 006 1hls means LhaL lf S Cnx nlfLy ls aL 4000 a sell order of LhaL value
wlll go Lhrough aL a prlce of 8s _______ 4000*06
(a) 399760
(b) 3996
(c) 399930
(d) 399330
10 Ms SheLLy has sold 1000 calls on A8C LLd aL a sLrlke prlce of 8s 883 for a premlum
of 8s27 per call on Aprll 1 1he closlng prlce of equlLy shares of A8C LLd ls 8s 890 on
LhaL day lf Lhe call opLlon ls asslgned agalnsL her on LhaL day whaL ls her neL
obllgaLlon on Aprll 01?
(a) ayouL of 8s22300
(b) ayln of 8s22000
(c) ayln of 8s23000
(d) ayouL of 8s22000
11 8Ank nlfLy ls a derlvaLlve conLracL on nSL ____________ 1rue or lalse?
(a) 1rue
(b) lalse
(c) l am noL aLLempLlng Lhe quesLlon a
12 Cnx l1 ls a derlvaLlves conLracL on nSL 1rue or lalse?
(a) 1rue
(b) lalse
(c) l am noL aLLempLlng Lhe quesLlon a
13 lorward conLracLs on explra Llon have Lo seLLled by __________
(a) cash
(b) dlfference ln prlce
(c) paymenL of margln
(d) dellvery of Lhe asseL
14 Cn explry Lhe seLLlemenL prlce of a sLock opLlon conLracL ls Lhe _________
(a) Closlng fuLures prlce
(b) Closlng sLock prlce
(c) Closlng opLlons prlce
13 ln an lndex fund Lradlng ln Lhe sLocks comprlslng Lhe fund ls requlred ln response Lo
______
(a) lavourable company speclflc news
(b) oor company speclflc news
(c) Mergers
(d) CovernmenL pollcles
be abouL 004 1hls means LhaL lf S Cnx nlfLy ls aL 4100 a sell order of LhaL value 4100*004164
wlll go Lhrough aL a prlce of 8s _______ 4100164409836
(a) 409833
(b) 4096
(c) 4093
(d) 409930
17 1he followlng ls an example of an order wlLh Llme condlLlon
(a) uay order
(b) SLop Loss
(c) LlmlL
(d) All of Lhe above
Lradlng ls d one and Lhe deLalls of cllenL Lradlng are one cllenL buys 1000 unlLs [
1260 1he second cllenL buys 1000 unlLs [8s1233 and sells 1000 unlLs [8s1260?
(a) 2000 unlLs
(b) 3000 unlLs
(c) 1000 unlLs
(d) 4000 unlLs
19 1he beLa of 1LLCC ls 08 A person has a long 1LLCC poslLlon of 8s 800000 coupled
wlLh a shorL nlfLy poslLlon of 8s 600000 Whlch of Lhe followlng ls 18uL?
(a) Pe ls bearlsh on nlfLy as well as on 1LLCC
(b) Pe has a compleLe hedge agalnsL flucLuaLlons of nlfLy
(c) Pe has a parLlal hedge agalnsL flucLuaLlons of nlfLy
(d) Pe ls bulllsh on nlfLy as well as on 1LLCC
20 8ellance lndusLrles LLd does noL have a 8eLa value 1rue or lalse?
(a) 1rue
(b) lalse
(c) l am noL aLLempLlng Lhe quesLlon b
21 nlfLy conslsLs of securlLles havlng _____ markeL caplLallzaLlon sLocks
(a) large
(b) small
(c) medlum
(d) large and small
22 1he beLa of lClCl 8ank ls 13 A person has a long poslLlon of 8s 400000 of lClCl
8ank Whlch of Lhe followlng glves a compleLe hedge?
(a) SLLL 8s 600000 of nlfLy fuLures
(b) SLLL 8s 630000 of nlfLy fuLures
(c) SLLL 8s 700000 of nlfLy fuLures
23 Cn 13Lh !anuary 8a[u boughL a !anuary nlfLy fuLures conLracL whlch cosL hlm
8s334300 lor Lhls he had Lo pay an lnlLlal margln of 8s31320 Lo hls broker Lach
nlfLy fuLures conLracL ls for dellvery of 100 nlfLles Cn 23Lh !anuary Lhe lndex closed
aL 3360 Pow much proflL/loss dld he make?
(a) () 1200
(b) () 1300
(c) (+) 1200
(d) (+) 1300
24 luLures have a _______ payo ff
(a) nonllnear
(b) Llnear
(c) verLlcal
(d) PorlzonLal
23 Mr A buys a fuLures conLracL of M/s x?Z LLd (LoL Slze 1000) explrlng on 29Lh Sep
for 8s 300 1he spoL prlce of Lhe share ls 8s 290 uoes he have Lo pay securlLles
LransacLlon Lax?
(a) ?es only lf he buys more Lhan 1 conLracL
(b) ?es
(c) no only lf he sells of Lhe conLracL lmmedlaLely
(d) no
26 Ms SheLLy has sold 3000 calls on A8C LLd aL a sLrlke prlce of 8s 300 for a premlum
of 8s23 per call on Aprll 1 1he closlng prlce of equlLy shares of A8C LLd ls 8s 303 on
LhaL day lf Lhe call opLlon ls asslgned agalnsL her on LhaL day whaL ls her neL
obllgaLlon on Aprll 01?
(b) ayln of 8s122000
(c) ayln of 8s123000
27 An lndex puL opLlon aL a sLrlke of 8s 4200 ls selllng aL a premlum of 8s 30 AL whaL
lndex level wlll lL break even for Lhe buyer of Lhe opLlon?
(a) 8s 4173
(b) 8s 4176
(c) 8s 4170
(d) 8s 4162
28 Whlch of Lhe followlng ls Lhe duLy of Lhe Lradlng member?
(a) Clvlng Llps Lo cllenLs Lo buy and sell
(b) lundlng losses of Lhe cllenLs
(c) CollecLlon of adequaLe marglns from Lhe cllenL
29 1he only way an lnvesLor can manage rlsks ln Lhe underlylng cash markeL ls by?
(a) Pedglng ln Lhe fuLures markeL
(b) SpeculaLlng ln Lhe fuLures markeL
(c) SpeculaLlng ln Lhe opLlons markeL
30 nlfLy ls a ________ lndex
(a) well dlverslfled
(b) poorly dlverslfled
(c) balanced
(d) volaLlle
31 ?ou have boughL a sLock on Lhe exchange 1o ellmlnaLe Lhe rlsk arlsln g ouL of Lhe
sLock prlce you should _____
(a) buy lndex fuLures
(b) buy sLock fuLures
(c) sell Lhe sLock fuLures
32 Cn 1sL !anuary a Lhree monLh call opLlon on Lhe nlfLy wlLh a sLrlke of 4280 ls
avallable for Lradlng 1he `1' LhaL ls used ln Lhe 8lack Scholes formula should be
_______ 3/12023
(a) 3
(b) 023
(c) 90
33 1he spoL prlce of A8C LLd ls 8s 2000 and Lhe cosL of flnanclng ls 10 WhaL ls Lhe
falr prlce of a one monLh fuLures conLracL on A8C LLd?
(a) 2013 se(r*L)
(b) 201673 2000*27183(1*1/12)
(c) 201873
(d) 2019
34 Cyrus ls shorL 800 Wl8C !uly uLs aL sLrlke 8s 1320 for a premlum of 8s 43 each on
!uly 22 Cn !uly 23 (Lhe explraLlon day of Lhe conLracL) Lhe spoL prlce of Wl8C
closes aL 8s1333 whlle Lhe !uly fuLures on Wl8C close aL 1633 uoes Cyrus have an
obllgaLlon Lo Lhe Clearlng CorporaLlon on hls poslLlons and how much lf any?
(a) ?es 8s19800 payouL
(b) no pay ln or payouL on explraLlon of conLracL
(c) ?es 8s18900 payouL
(d) ?es 8s19800 payln
33 Cn 13Lh CcLober Arvlnd boughL a uecember nlfLy fuLures conLracL whlch cosL hlm 8s
323600 lor Lhls he had Lo pay an lnlLlal margln of 8s 30100 Lo hls broker Lach
nlfLy fuLures conLracL ls for dellvery of 100 nlfLles Cn 27Lh uecember Lhe lndex
closed aL 3280 Pow much proflL/loss dld he make?
(a) (+) 1400
(b) () 2400
(c) (+) 2400
(d) () 1400
36 Assume LhaL Lhe base value of a markeL caplLallzaLlon welghLed lndex were 1000 and
Lhe base markeL caplLallsaLlon were 8s70000 crore lf Lhe currenL markeL
caplLallsaLlon ls 8s140000 crore Lhe lndex ls aL 8s ____
(a) 2110
(b) 2330
(c) 2230
(d) 2000
37 Cn 1sL !anuary a one monLh call opLlon on Lhe nlfLy wlLh a sLrlke of 4230 ls avallable
for Lradlng 1he `1' LhaL ls used ln Lhe 8lack Scholes formula should be _______
(a) 2
(b) 008
(c) 20
38 lf Lhe annual rlsk free raLe ls 9 Lhen Lhe 'r used ln Lhe 8lack Scholes formula should
be ______
(a) 0086
(b) 0099
(c) 11
39 1he beLa of ACC ls 13 A person has a long 1LLCC poslLlon of 8s 900000 coupled
wlLh a shorL nlfLy poslLlon of 8s 800000 Whlch of Lhe followlng ls 18uL?
(a) Pe ls bearlsh on nlfLy as well as on ACC
(b) Pe has a compleLe hedge agalnsL flucLuaLlons of nlfLy
(c) Pe has a parLlal hedge agalnsL flucLuaLlons of nlfLy
(d) Pe ls bulllsh on nlfLy as well as on ACC
40 lf Lhe annual rlsk free raLe ls 8 Lhen Lhe 'r used ln Lhe 8lack Scholes formula should
be ______
(a) 0076 ln(1+08)
(b) 0096
(c) 11
41 Pedglng wlLh sLock fuLures means ___________
(a) shorLlng sLocks
(b) shorLlng lndex fuLures
(c) shorLlng sLock fuLures
(d) long lndex fuLures
(a) Lmploylng large numbers of research analysLs
(b) LxecuLlng hls own orders prlor Lo cllenL orders
(c) 8rlnglng rlsk facLors Lo Lhe knowledge of cllenL
43 Cn explry Lhe seLLlemenL prlce of a 8ellance lndusLrles LLd fuLures conLracL ls
_______
(a) openlng prlce of 8ellance lndusLrles LLd
(b) closlng prlce of 8ellance lndusLrles LLd
(c) closlng prlce of 8ellance lndusLrles LLd fuLures conLracL
(d) LasL Lraded prlce of 8ellance lndusLrles LLd
44 Cn 1sL !anuary a Lwo monLh call opLlon on Lhe nlfLy wlLh a sLrlke of 4230 ls avallable
(a) 3 2/12016
(b) 016
(c) 90
43 1he nLA1 lC Lradlng sysLem _____________
(a) allows spread Lrades
(b) allows comblnaLlon Lrades
(c) allows only a slngle order placemenL aL a Llme
(d) (a) and (b) above
46 SanLosh ls bearlsh abouL A8C LLd and sells 10 onemonLh A8C LLd fuLures conLracLs
aL 8s396000 Cn Lhe lasL 1hursday of Lhe monLh A8C LLd closes aL 8s410 Pe
makes a _________ (assume one loL 100)
(a) proflL of 8s 14000
(b) loss of 8s 14000
(c) proflL of 8s 28000
(d) loss of 8s 28000
47 1o be ellglble for Lradlng a broker musL be _________
(a) SL8l reglsLered
(b) hlghly caplLallsed
(c) a member of Lhe AssoclaLlon of 1radlng members
48 ?ou are Lhe owner of a 4 mllllon porLfollo wlLh a beLa 10 ?ou would llke Lo lnsure
your porLfollo agalnsL a fall ln Lhe lndex of magnlLude hlgher Lhan 12 SpoL nlfLy
sLands aL 4200 uL opLlons on Lhe nlfLy are avallable aL Lhree sLrlke prlces Whlch
sLrlke wlll glve you Lhe lnsurance you wanL?
(a) 3870
(b) 3840 4200*124200
(c) 3696
49 A sLock ls currenLly selllng aL 8s 30 1he call opLlon Lo buy Lhe sLock aL 8s43 cosLs 30433
8s9 WhaL ls Lhe Llme value of Lhe opLlon? 934
(a) 8s 9
(b) 8s 7
(c) 8s 4
(d) 8s 2
30 An opLlon conLracL whlch wlll noL be exerclsed on Lhe explry daLe ls ________
(a) an lnLhemoney opLlon
(b) a deep lnLhemoney
(c) an ouLofLhemoney opLlon
31 1he LheoreLlcal fuLures prlce ls based on Lhe ________
(a) sLrlke prlce
(b) underlylng spoL prlce
(c) Lhe prlce aL whlch a fuLures conLracL Lrades ln Lhe markeL
(d) Lhe prlce seL by Lhe exchange
32 Cn 1sL !anuary a Lwo monLh call opLlon on Lhe nlfLy wlLh a sLrlke of 4000 ls avallable
(a) 2 2/12016
(b) 016
(c) 20
33 SLock opLlons on PulC 8ank LLd can be exerclsed ___________
(a) any Llme on or before maLurlLy
(b) upon maLurlLy
(c) any Llme upLo maLurlLy
(d) on a daLe prespeclfled by Lhe Lradlng member
34 Ms SheLLy has sold 1400 calls on PLL aL a sLrlke prlce of 8s297 for a premlum of
8s11 per call on Aprll 1 1he closlng prlce of equlLy shares of PLL ls 8s 300 on LhaL
day lf Lhe call opLlon ls asslgned agalnsL her on LhaL day whaL ls her neL obllgaLlon on
Aprll 01
(b) ayln of 8s12000
(c) ayln of 8s11000
33 _____________ls allowed Lo clear Lrades of Lhemselves buL noL of oLhers
(a) 1radlng member clearlng member
(b) 1radlng members are noL allowed Lo clear Lhelr own Lrades
(c) professlonal clearlng member
(d) self clearlng member
36 lndex lunds use lndex fuLures Lo reduce _________
(a) Lracklng error
(b) expenses
(c) Llme Lo lnvesL ln Lhe markeLs
37 Weekly opLlons Lradlng commenced on nSL ln _______
(a) 02!un2003
(b) 04!ul2003
(c) nSL does noL Lrade ln Weekly opLlons
(d) 04!un2003
be abouL 003 1hls means LhaL lf S Cnx nlfLy ls aL 4200 a buy order of LhaL
value wlll go Lhrough aL a prlce of 8s _______
(a) 420210
(b) 4200
(c) 4210
(d) 4211
Lradlng ls done and Lhe deLalls of cllenL Lradlng are one cllenL buys 2000 unlLs [
1260 1he second cllenL buys 2000 unlLs [8s1233 and sells 1000 unlLs [8s1260?
(a) 4000 unlLs
(b) 3000 unlLs
(c) 3000 unlLs
60 ln Lhe lC segmenL of nSLlL obllgaLlons of cllenLs poslLlons are calculaLed on a
________ basls
(a) cumulaLlve
(b) gross
(c) neL
(d) porLfollo
61 Weekly opLlons Lraded on nSL follow an _______
(a) Luropean sLyle seLLlemenL
(b) Amerlcan sLyle seLLlemenL
(c) Aslan sLyle seLLlemenL
(d) Weekly CpLlons are noL Lraded aL nSL
62 A sLock ls currenLly selllng aL 8s 73 1he puL opLlon Lo sell Lhe sLock aL 8s
80 cosLs 8s 6 WhaL ls Lhe Llme value of Lhe opLlon?
(a) 8s 1
(b) 8s 3
(c) 8s 2
(d) 8s 4
63 LqulLy lndex CpLlons are a form of _________
(a) CpLlons on luLures
(b) 8askeL CpLlons
(c) SwapLlons
(d) WarranLs
64 SwapLlon ls an opLlon Lo buy or sell a _______aL Lhe explry of Lhe opLlon
(a) swap
(b) fuLures
(c) baskeL opLlon
(d) warranL
63 _________ ls one of Lhe uses of uerlvaLlves?
(a) lorecasLlng
(b) 8lsk Laklng
(c) ArblLrage
66 1o be ellglble for opLlons Lradlng Lhe ______________ of a sLock ls Laken
lnLo accounL
(a) rlce LlmlL
(b) 1radlng Member oslLlon LlmlL
(c) CllenL Wlse oslLlon LlmlL
(d) MarkeL Wlde oslLlon LlmlL
67 1he LheoreLlcal fuLures prlce ls consldered for ___________________ln
case a luLures ConLracL ls noL Lraded durlng Lhe day?
(a) openlng prlce
(b) lasL Lraded prlce
(c) premlum seLLlemenL
(d) dally mark Lo markeL seLLlemenL
68 ?ou are Lhe owner of a 4 mllllon porLfollo wlLh a beLa 10 ?ou would llke
Lo lnsure your porLfollo agalnsL a fall ln Lhe lndex of magnlLude hlgher
Lhan 13 SpoL nlfLy sLands aL 4200 uL opLlons on Lhe nlfLy are
avallable aL Lhree sLrlke prlces Whlch sLrlke wlll glve you Lhe lnsurance
you wanL?
(a) 4870
(b) 4840
(c) 3370
69 230 ls Lhe ___________ brokerage chargeable by a Lradlng member ln
relaLlon Lo Lrades effecLed ln Lhe conLracLs admlLLed Lo deallng on Lhe lC
segmenL of nSLlL excluslve of sLaLuLory levles
(a) maxlmum
(b) mlnlmum
(c) Lhere ls no llmlL on Lhe brokerage
(d) flxed
70 Ms SheLLy has sold 800 calls on u8 8Luu?S LA8 aL a sLrlke prlce of
8s882 for a pre mlum of 8s23 per call on Aprll 1 1he closlng prlce of
equlLy shares of u8 8Luu?S LA8 ls 8s 884 on LhaL day lf Lhe call
opLlon ls asslgned agalnsL her on LhaL day whaL ls her neL obllgaLlon on
Aprll 01?
(b) ayln of 8s18300
(c) ayln of 8s13800
71 1+1 ls Lhe basls on whlch ___________of fuLures Lakes place
(a) Pedglng
(b) ArblLrage
(c) rlclng
(d) ually Mark Lo MarkeL seLLlemenL
72 1he sLock symbol volume and prlce aL whlch each successlve Lrade occurs
ls dlsplayed ln Lhe ____________?
(a) nLA1 1radlng SysLem 1lcker Screen
(b) M8 Screen
(c) CuLsLandlng Crders screen
73 'An unlque user lu ls asslgned Lo each ________________ ln lC
segmenL of nSLlL
(a) user of Lhe Lradlng member
(b) dlrecLor of Lhe Lradlng member
(c) branch
(d) exchange a
(e) l am noL aLLempLlng Lhe quesLlon
74 An lCC order sLands for ______________
(a) lnLeresL Crder CancellaLlon
(b) lmmedlaLe or Cancel order
(c) lncrease Crder CancellaLlon
(d) lmmedlaLe or CorrecL order
73 _________ faclllLy ls avallable on Lhe lC segmenL of nSLlL
(a) SLock Lradlng faclllLy
(b) CommodlLy Lradlng
(c) Carry forward
(d) 8askeL Lradlng faclllLy
76 ____________ ls an order whlch wlll be cancelled lf lL ls noL maLched
lmmedlaLely and ln lLs enLlreLy ln lC segmenL of nSLlL
(a) M8 order
(b) lmmedlaLe or Cancel order
(c) LlmlL order
(d) SLop Loss
77 lnsLlLuLlonal lnvesLors world wlde are ma[or users of ______
a) SLock luLures
b) SLock CpLlons
c) lndex Llnked derlvaLlves
d) LqulLy llnked derlvaLlves
e) l am noL aLLempLlng Lhe quesLlon c
78 An auLhorlsed person ln Lhe luLures CpLlons segmenL ls ___________
a) Lhe cllenL of Lhe broker
b) a clearlng member
c) an approved user of a parLlclpanL
d) All of Lhe above
79 All Lradlng member's poslLlons are monlLored on a real Llme basls by Lhe
________
(a) clearlng member only
(b) Lradlng member only
(c) nSCCL
(d) nSL
80 1he opLlon prlce ls Lhe _______
a) prlce pald by Lhe buyer of Lhe opLlon Lo Lhe seller of Lhe opLlon
b) pald by Lhe seller of Lhe opLlon Lo Lhe buyer of Lhe opLlon
c) sum of lnLrlnslc value plus dally margln of an opLlon
d) All of Lhe above
e) l am noL aLLempLlng Lhe quesLlon a
81 __________ conLracLs are noL seLLled on exerclse daLe?
a) ln Lhe money opLlon conLracLs
b) ueep ln Lhe money opLlon conLracLs
c) 8oLh ln Lhe money and deep ln Lhe money opLlon conLracLs
d) CuL of Lhe money opLlon conLracLs
e) l am noL aLLempLlng Lhe quesLlon d
82 Whlch of Lhe followlng are derlvaLlves?
a) SLocks
b) 8onds
c) lorward 8aLe AgreemenLs
d) All of Lhe above
83 1o safeguard agalnsL poLenLlal losses on ouLsLandlng poslLlons
___________ ls collecLed
a) remlum margln
b) AsslgnmenL margln
c) lnlLlal Margln
d) none of Lhe above
84 1he seller of a derlvaLlve lnsLrumenL pays ___________
a) WealLh
b) Sales 1ax
c) SecurlLles 1ransacLlon Lax
d) Lxclse duLy
83 1he lnLrlnslc value of a call opLlon ls Lhe amounL Lhe opLlon ls _______
(a) deep ouLofLhemoney
(b) aLLhemoney
(c) ouLofLhemoney
86 1 ls Lhe beLa of _______
(a) All sLocks Lraded aL nSL
(b) nlfLy 30
(c) All sLocks whlch are parL of nlfLy 30
87 A sLock broker musL have a cerLlflcaLe of reglsLraLlon granLed by SL8l
before he ls allowed Lo __________
(a) seL up hls broklng flrm
(b) hlre employees for hls broklng flrm
(c) appolnL any dlrecLor ln Lhe broklng flrm
(d) buy sell or deal ln securlLles
88 1he markeL lmpacL cosL on a Lrade of 8s 3 mllllon of Lhe S Cnx nlfLy
works ouL Lo be abouL 003 1hls means LhaL lf S Cnx nlfLy ls aL
4000 a sell order of LhaL value wlll go Lhrough aL a prlce of 8s _______
(a) 3998
(b) 3993
(c) 399930
(d) 399330
89 ________can be boughL and sold on an exchange llke shares
(a) L1ls
(b) lndex lunds
(c) llxed deposlLs
90 Ms SheLLy has sold 600 calls on Wl8C aL a sLrlke prlce of 8s1403 for a
premlum of 8s30 per call on Aprll 1 1he closlng prlce of equlLy shares of
Wl8C ls 8s 1433 on LhaL day lf Lhe call opLlon ls asslgned agalnsL her
on LhaL day whaL ls her neL obllgaLlon on Aprll 01?
(a) ayouL of 8s 21600
(b) ayln of 8s13000
(c) ayouL of 8s13400
(d) ayln of 8s12000
91 ___________ seeks Lo measure Lhe amounL of value LhaL a porLfollo may
sLand Lo lose wlLhln a cerLaln Llme horlzon due Lo poLenLlal changes ln
underlylng asseL spoL prlce
(a) 8lack Scholes model
(b) va8 meLhodology
(c) 8lnomlal model
(d) volaLlllLy model
92 Mr A sells a fuLures conLracL of M/s x?Z LLd (LoL Slze 1000) explrlng on
29Lh Sep for 8s 300 1he spoL prlce of Lhe share ls 8s 290 Pe wlll have
Lo pay a _________
(a) WealLh Lax
(b) Sales 1ax
(c) Lxclse 1ax
(d) SecurlLles LransacLlon Lax
93 An lndex puL opLlon aL a sLrlke of 8s4176 ls selllng aL a premlum of 8s
18 AL whaL lndex level wlll lL break even for Lhe buyer of Lhe opLlon?
(a) 8s 4194
(b) 8s 4196
(c) 8s 4138
(d) 8s 4162
(a) Clvlng Llps Lo cllenLs Lo buy and sell
(b) lundlng losses of Lhe cllenLs
(c) Lnsurlng Llmely payln and payouL of funds
93 Whlch of Lhe followlng should be dlsclosed separaLely for long and shorL
poslLlons ln respecL of each serles of equlLy lndex fuLures as of Lhe
balance sheeL daLe?
(a) number of equlLy lndex fuLures conLracLs havlng open poslLlon
(b) names of Lhe cllenLs of each Lrade ln Lhe unlLs of equlLy lndex fuLures
(c) names of Lhe dealers of each Lrade ln Lhe unlLs of equlLy lndex fuLures
96 luLures and forwards are slmllar ln Lhe followlng respecL____
(a) seLLlemenL of conLracL Lakes place ln Lhe fuLure
(b) Lhey have seLLlemenL guaranLee
(c) poslLlons are markedLomarkeL everyday
(d) conLracLs are cusLom deslgned
97 ?ou have boughL a sLock on Lhe exchange 1o ellmlnaLe Lhe rlsk arlslng
ouL of Lhe sLock prlce you should _____
(c) sell sLock fuLures
(d) buy more sLocks
98 M1M seLLlemenL sLands for _____________
(a) Member Lo Member seLLlemenL
(b) MarkeL Lo MarkeL seLLlemenL
(c) Money Lo Money seLLlemenL
(d) Monday Lo Monday seLLlemenL
99 1he spoL prlce of A8C LLd ls 8s 1000 and Lhe cosL of flnanclng ls 10 1000*27183(10*1/12)
WhaL ls Lhe falr prlce of a one monLh fuLures conLracL on A8C LLd?
(a) 108280
(b) 100833
(c) 108313
(d) 109940
100 Cyrus ls shorL 800 Wl8C !uly uLs aL sLrlke 8s 1620 for a premlum of
8s 43 each on !uly 22 Cn !uly 23 (Lhe explraLlon day of Lhe conLracL) Lhe
spoL prlce of Wl8C closes aL 8s1633 whlle Lhe !uly fuLures on Wl8C close
aL 1633 uoes Cyrus have an obllgaLlon Lo Lhe Clearlng CorporaLlon on hls
poslLlons and how much lf any?
(d) ?es 8s19800 payln
101 Whlch of Lhe followlng ls requlred for personnel worklng ln Lhe lndusLry ln
order Lo dlspense quallLy lnLermedlaLlon?
(a) 1o follow cerLaln code of conducL
(b) 1o glve frequenL buy and sell recommendaLlons Lo cllenLs
(c) 1o have good conLacLs wlLh lnsLlLuLlonal cllenLs
102 !une fuLures conLracL on A8C LLd closed aL 8s 4133 on May 20 and aL 413341303
8s 4130 on May 21 8a[u has a shorL poslLlon of 8000 ln Lhe !une fuLures 3*800024000
conLracL Cn May 21 he sells 3000 unlLs of 28!une explrlng uL CpLlons on 30*3000130000
A8C LLd aL sLrlke prlce of 8s4143 for a premlum of 8s30 per unlL WhaL ls 130000+24000174000 A?Cu1
hls neL obllgaLlon Lo / from Lhe Clearlng CorporaLlon for May 21?
(a) ayln of 8s132000
(b) ayln of 8s172000
103 Assume LhaL Lhe base value of a markeL caplLallzaLlon welghLed lndex
were 1000 and Lhe base markeL caplLallsaLlon were 8s33000 crore lf Lhe
currenL markeL caplLallsaLlon ls 8s110000 crore Lhe lndex ls aL 8s ____ CM1/8MC*8lnuLx
(a) 2110 110000/33000*1000
(b) 2330
(c) 2230
(d) 2000
104 18APk (1racks) ls a popular L1l based on Lhe _________
(a) nlfLy 30 lndex
(b) S 300 lndex
(c) Pang Seng lndex
(d) uow !ones lndex
103 lf Lhe annual rlsk free raLe ls 12 Lhen Lhe 'r used ln Lhe 8lack Scholes
formula should be ______ ln(1+12)
(a) 01133
(b) 01398
(c) 11
106 AL Lhe balance sheeL daLe Lhe balance ln Lhe `lnlLlal margln equlLy lndex
opLlons accounL should be shown separaLely under Lhe head ________
(a) prepald expenses
(b) currenL asseLs
(c) ouLsLandlng balance
(d) currenL llablllLles
107 Pedglng wlLh sLock fuLures means ___________
(a) long securlLy shorL securlLy
(b) long lndex fuLures shorL lndex fuLures
(c) long securlLy shorL sLock fuLures
(d) long securlLy long lndex fuLures
(a) lllllng of know ?our CllenL form
(b) LxecuLlon of CllenL 8roker AgreemenL
109 Cn explry Lhe seLLlemenL prlce of a sLock fuLures conLracL ls _______
(a) openlng prlce of fuLures conLracL
(b) closlng sLock prlce
(c) closlng prlce of fuLures conLracL
(d) openlng sLock value
(a) allows spread Lrades
(b) does noL allow comblnaLlon Lrades
111 SanLosh ls bearlsh abouL A8C LLdand sells Len one monLh A8C LLd
fuLures conLracLs aL 8s396000 Cn Lhe lasL 1hursday of Lhe monLh A8C LLd
closes aL 8s410 Pe makes a _________ (assume one loL 100)
(b) loss of 8s 7000
112 1he ________________ applles Lo SL8l for Lhe Lradlng member
reglsLraLlon
(a) sLock exchange of whlch he or she ls admlLLed as a member
(b) sLock broker
(c) AssoclaLlon of 1radlng Members
(d) AssoclaLlon of naLlonal 1radlng Members
113 1he onllne cerLlflcaLlon of nSL ls known as Lhe ___________
(a) naLlonal CerLlflcaLlon ln llnanclal ManagemenL (nClM)
(b) naLlonal CerLlflcaLlon ln llnanclal MarkeLs (nClM)
(c) nSLs CerLlflcaLlon ln llnanclal MarkeLs (nClM)
(d) nSLs CerLlflcaLlon ln llnanclal ManagemenL (nClM)
114 ln lndlan conLexL Lradlng of derlvaLlves ls governed by Lhe regulaLory
framework under Lhe _______
(a) SC(8)8
(b) SL8l AcL
(c) SC(8)A
113 1he LheoreLlcal fuLures prlce ls ________
(a) Lhe prlce of a conLracL ln Lhe fuLure
(b) spoL prlce plus cosL of carry
(d) Lhe prlce seL by Lhe exchange
116 SLock opLlons on lClCl 8ank LLd can be exerclsed ________
(b) upon maLurlLy
(d) on a daLe prespeclfled by Lhe Lradlng member
117 ______________ls allowed Lo only clear Lrades of oLhers buL noL Lrade
Lhemselves
(d) self clearlng member
118 1he lnlLlal margln amounL ls based on ______
(a) 8lack And Scholes calculaLlons
(b) 8lnomlal calculaLlons
(c) va8 calculaLlons
(d) 1heorlLlcal prlclng calculaLlons
119 A markeL lndex ls very lmporLanL for lLs use ___________
(a) as a baromeLer for markeL behavlor
(b) as an lndlcaLor of fuLure sLock prlces
(c) as an lndlcaLor of managemenL quallLy of companles
120 Swaps are a form of __________
(a) uerlvaLlves
(b) SLocks
(c) 8onds
121 luLures Lradlng commenced flrsL on ___________
a)Chlcago 8oard of 1rade
b)Chlcago MercanLlle Lxchange
c)Chlcago 8oard CpLlons Lxchange
d)London lnLernaLlonal llnanclal luLures and CpLlons Lxchange a
122
uerlvaLlve ls a producL whose value ls derlved from Lhe value of one or more baslc varlables
are
a)underlylng asseL
b)lndex
c) reference raLe
d)All Lhe above
e)none Lhe above Ans C
123 uerlvaLlve producLs lnlLlally emerged as devlces agalnsL fllcLuaLlons
a) hedglng
b)SpeculaLlon
c) arblLarage
d) All Lhe above
e) none Lhe above Ans A
124 Maln lacLors drlvlng Lhe growLh of derlvaLlves
a) lnnovaLlons ln Lhe derlvaLlves markeLs
b) MarkeL behavlour
c) lncreased volaLlllLy ln asseL prlces
d) a and c
e) a and b Ans u
123
opLlons glve Lhe buyer Lhe rlghL buL noL Lhe obllgaLlon Lo buy a glven quanLlLy of Lhe
underlylng asseL aL a glven prlce on or before a glven fuLure daLe
a) puL opLlon
b) call opLlon
c) SwapLlons
d) All Lhe above
e) none Lhe above Ans 8
126 opLlons are opLlons on porLfollos of underlylng asseLs
a) WarranLs
b) LLAS
c) 8askeLs
d) Swaps
e) none Lhe above Ans C
127
Some opLlons are prlvaLe agreemenLs beLween Lwo parLles Lo exchange cash flows ln Lhe
fuLure accordlng Lo a prearranged formula are called
a) Swaps
b) LLAS
c) 8askeLs
d) WarranLs
128 1he followlng person ls noL a parLlclpanL ln derlvaLlve markeL
a) hedgers
b) brokers
c) speculaLors
d) arblLargerous
129 ArblLrageurs are ln buslness Lo Lake advanLage of
a) an exLra leverage
b) dlscrepancy beLween prlces ln Lwo dlfferenL markeLs
c) dlverslflcaLlon of rlsk
d) All Lhe above
130
A Member ls a CM who ls 1yplcally banks or cusLodlans could be clear and seLLle for 1Ms
are called
a) rofesslonal Clearlng Member
b)1radlng Member Clearlng member
c) Self clearlng member
d) all Lhe above
d)none Lhe above Ans A
131
a sLock lndex number ls Lhe currenL relaLlve value of a average of Lhe prlces of a pre
deflned group of equlLles
a) welghLed
b) slmple
c) movlng
d) all Lhe above
e) none of Lhese Ans A
132 A markeL lndex ls very lmporLanL for uslng
a) as a baromeLer for markeL behavlor
b) as a benchmark porLfollo performance
c) ln passlve fund managemenL by lndex funds
d) All Lhe above
e) none Lhe above Ans u
133 A good lndex ls a Lradeoff beLween
a) rlsk and reLurn
b) dlverslflcaLlon and llquldlLy
c) rlsk and llquldlLy
d) dlverslflcLlon and rlsk
134 A good markeL lndex should have aLLrlbuLes of
a) lL should capLure Lhe behavlor of a large varleLy of dlfferenL porLfollos ln Lhe markeL
b) 1he sLocks lncluded ln Lhe lndex should be hlghly llllquld
c )lL should noL be professlonally malnLalned
d) All Lhe above
133 MarkeL lmpacL cosL ls a measure of Lhe of Lhe markeL
a) llquldlLy
b) proflLabllLy
c)volLalLly
d) All Lhe above Ans A
e) none Lhe above
136
ls a measure of Lhe exLenL Lo whlch an lndex correlaLes wlLh a porLfollo whaLever Lhe
porLfollo may be
a) lmpacL cosL
b) Pedglng effecLlveness
c) all Lhe above
c) none Lhe above Ans 8
137 lndex derlvaLlves are derlvaLlve conLracLs whlch have Lhe lndex as Lhe underlylng
above sLaLemenL ls Lrue of false
a) 1rue
b) lalse Ans A
138 are popular lndex derlvaLlves conLracLs ln Lhe world
a) lndex fuLures
b) lndex opLlons
c) All Lhe above
d)none Lhe above Ans C
139 markeLs can be used for creaLlng synLheLlc lndex funds
a) opLlon markeL
b)cash markeL
c) fuLures markeL
d)forward markeL
140 commonly followed sLock markeL lndex
a) MarkeL caplLallzaLlon welghLed lndex
b) prlce welghLed lndex
c) SLock welghLed lndex
c) All Lhe above
141 1he sallenL feaLures of forward conLracL ls
a) 1hey are bllaLeral conLracLs
b) 1hey SLandardlzed conLracL
c) 1hey more llquld
d) none Lhe above Ans A
142 Cne of Lhe llmlLaLlons of forward markeLs ls
a) cenLrallzaLlon of Lradlng
b) CounLerparLy rlsk
c) LllquldlLy
d) All Lhe above
143 fuLures conLracLs are
a) sLandardlzed conLracLs
b)cusmlsed conLracL
c) llllquld conLacL
d) all Lhe above
d)none above Ans A
144 lorwards conLracL requlres
a) margln paymenLs
b) no margln paymenL
c) All Lhe above
d) none Lhe above Ans 8
143 ln Lhe conLexL of fl nanclal fuLures fuLures prlce mlnus Lhe spoL prlce ls called
a) - MarklngLomarkeL
b) - CosL of carry

d) All Lhe above
146
opLlon glves Lhe holder Lhe rlghL buL noL Lhe obllgaLlon Lo buy an asseL by a cerLaln daLe
for a cerLaln prlce ls called
a) Call opLlon
b) puL opLlon
c) swapLlons
d) all Lhe above
147 1he prlce whlch Lhe opLlon buyer pays Lo Lhe opLlon seller ls called
a) CpLlon premlum
b) CpLlon prlce
c) All Lhe above
d) none Lhe above Ans C
148 1he prlce speclfl ed ln Lhe opLlons conLracL ls known as
a) SLlrke prlce
b) Lxerclse prlce
c) All Lhe above
b) none Lhe above Ans C
149 opLlons LhaL can be exerclsed aL any Llme upLo Lhe explraLlon daLe are called
a) Amerclan opLlons
b) Lurpean opLlons
c) Aslan opLlons
d) All Lhe above
130 ln call opLlon when Lhe currenL lndex sLands aL a level hlgher Lhan Lhe sLrlke prlce ls called
a) lnLhemoney
b) ALLhemoney opLlon
c) CuLofLhemoney opLlon
d) All Lhe above
131 1he opLlon premlum can be broken down by Lhe componeL of
a) lnLrlnslc value
b) Llme value
c) lace value
d) All Lhe above
132 1he dlfference beLween lLs premlum and lLs lnLrlnslc value ls
a) 1lme value of money
b) 1lme value of opLlon
c) lalr valure of opLon
d) lalr value of money
133 ulsLlncLlon beLween fuLures and opLlons are
a) Lxchange Lraded
b) Lxchange deflnes Lhe producL
c) payoff
d) all Lhe above
e) none above Ans C
ChapLer 4
134 ranks flrsL ln Lhe world ln Lerms of number of conLracLs Lraded ln slngle sLock fuLures
a) 8SL
b) nSL
c) All Lhe above
d) none Lhe above Ans 8
133 luLures conLracLs have
a) llnear payoffs
b) non llnear payoffs
c) All Lhe above
d) none Lhe above Ans A
136 1he payoff for a person who buys a fuLures conLracL ls slmllar Lo Lhe payoff for a person
a) who sells Lhe fuLure conLracL
b) who holds an asseL
c) who shorLs an asseL
d) All Lhe above
137 Lhe cosLofcarry ensures LhaL Lhe fuLures prlce sLay ln Lune wlLh Lhe
a) spoL prlce
b)currenL prlce
c) markeL prlce
d) opLlon prlce
138 lf Lhe reLurns you geL by lnvesLlng ln rlskless lnsLrumenLs ls more Lhan Lhe reLurn from Lhe
a) arblLrage Lrades
b)SpeculaLlve 1rades
c) hedglng Lrades
d) all Lhe above
e) none Lhe above
Ans A
139 1he fuLures opLlons Lradlng sysLem of nSL called
a) nLA1lC Lradlng sysLem
b) CuulnL lC Lradlng sysLem
c) All Lhe above
d) none Lhe above
160 Clearlng members are members of
a) nSL
b) nSCCL
c)8SL
d) all Lhe above
161 Crder maLchlng ls essenLlally on Lhe basls of
a)securlLy Llme and quanLlLy
b) lLs prlce
c) Llme and quanLlLy
d) all Lhe above
162 1he loL slze on Lhe fuLures markeL ls for 100 nlfLles
a) 200 nlfLles
b) 30 nlfLles
c)100 nlfLles
d) 300 nlfLles
e) none above Ans C
163
ls Lo enable Lhe user Lo vlew passlve orders ln Lhe markeL and are dlsplayed ln order
of besL prlces
a) MarkeL by lnqulry
b) MarkeL by prlce
c) MarkeL movemenL
d) All Lhe above
164
ln order Lo provlde a faclllLy for easy arblLrage beLween fuLures and cash markeLs nSL
lnLroduced faclllLy Lhar ls
a) baskeLLradlng
b) uay 1radlng
c) CpLlon Lradlng
d) All Lhe above
163 1he lC segmenL of nSL provldes Lradlng faclllLles for
a) lndex based fuLures
b ) lndlvldual sLock opLlons
c) lndex based opLlons
d) All Lhe above
e ) none Lhe above Ans u
166 1radlng ln sLock fuLures commenced on Lhe nSL from
a) uecember 2002
b) november 2001
c) nvember 2002
d) uecember 2001
167
underLakes clearlng and seLLlemenL of all Lrades execuLed on Lhe fuLures and opLlons
(lC) segmenL of Lhe nSL
a) SL8l
b) CSuL
c) nSCCL
d) All Lhe above
168
is a product whose value is derived Irom the value oI one or more basic
variables, called bases like underlying asset in a contractual manner.
a Equity
b Derivative Ans.b
c Forex
d Other asset
e I am not attending the question
169
Wheat Iarmers may wish to sell their harvest at a Iuture date to eliminate the risk oI a
change in prices by that date. Such a transaction is an example oI a .
a hedging
b Speculation
c arbitarage
d derivative. Ans.d
170 In the Indian context the Securities Contracts (Regulation) Act, 1956 (SC(R)A) deIines "derivative" to include
1.A security derived Irom a debt instrument, share, loan whether secured or
unsecured, risk instrument or contract Ior diIIerences or any other Iorm oI security.
2. A contract which derives its value Irom the prices, or index oI prices, oI underlying securities.
3. A contract which derives its value Irom the prices, or oI securities.
a 1 & 2
b 1 & 3 Ans.a
c 2 & 3
d All oI the above
171 The trading oI derivatives is governed by the regulatory Iramework under the .
a SC(CR)A
b SC(RR)A
c SCA
d SC(R)A
e I am not attending the question Ans.d
172 Derivative is a product whose value is derived Irom the value oI one or more basic variables are
a underlying asset,
b index,
c reIerence rate Ans.d
d All the above
173 Derivative products initially emerged as ... devices against Iluctuations
a hedging Ans.a
b Speculation
c arbitarage
d All the above
174 Some oI the Iactors driving the growth oI Iinancial derivatives are:
1. Increased volatility in asset prices in Ilnancial markets, Ans.d
2. Increased integration oI national Iinancial markets with the international markets,
3 Marked improvement in communication Iacilities and sharp decline in their costs,
a 1 &2
b 1 & 3
c 2 & 3
d All oI the above
175 The most common variants derivatives are
a Iorwards
b Iutures
c options
d swaps Ans.e
e All oI the above
176
contract is a customized contract between two entities, where settlement
takes place on a speciIic date in the Iuture at today's pre-agreed price.
a Iorwards Ans.a
b Iutures
c options
d swaps
177
contract is an agreement between two parties to buy or sell an asset at a
certain time in the Iuture at a certain price.
a Iorwards
b Iutures Ans.b
c options
d swaps
178
Calls give the buyer the right but not the obligation to buy a given quantity oI the
underlying asset, at a given price on or beIore a given Iuture date. Puts give the buyer
the right, but not the obligation to sell a given quantity oI the underlying asset at a
given price on or beIore a given date.This is
a Iorwards Ans.c
b Iutures
c options
d swaps
179
Options generally have lives oI upto one year, the majority oI options traded on
options exchanges having a maximum maturity oI nine months. Longer-dated options
are called and are generally traded over-the-counter.This is,
a Iorwards
b Iutures Ans.c
c Warrants
d swaps
180 is Long-Term Equity Anticipation Securities having a maturity oI upto three years.
a leaps
b warraants Ans.a
c swapations
d options
181 Which oI the Iollowing is Ialse
a Swaps are private agreements between two parties to exchange cash Ibws in the Iuture according to a prearranged Iormula
b Interest rate swaps areentail swapping only the interest related cash Ibws between the parties in the same currency
c
Currency swap are entail swapping both principal and interest between the parties,
with the cashIbws in one direction being in a diIIerent currency than those in the
opposite direction
d None oI the above Ans.d
182 Which oI the Iollowing are correct
a Swaptions are Iutures to buy or sell a swap that will become operative at the expiry oI the options.
b Swaptions are options to buy or sell a swap that will become operative at the expiry oI the options.
c Swaptions are Iorward contract to buy or sell a swap that will become operative at the e Ans.b
d Swaptions are options to only buy a swap that will become operative at the expiry oI the options.
e
183 An example oI basket option is
a Index options a
b Warrents
c Leaps
d Currency swaps
e None oI tthe above
184 Which oI the Iollowing is true
a A receiver swaption is an option to pay Iixed and receive Iloating. A payer swaption is an option to receive Iixed and pay Iloating.
b A receiver swaption is an option to receive Iloating and pay Iixed . A payer swaption is an option to pay Iloating and receive Iixed .
c A receiver swaption is an option to receive Iixed and pay Iloating. A payer swaption is c
d A payer swaption is an option to receive Iixed and pay Iloating. A receiver swaption is an option to pay Iixed and receive Iloating.
e None oI tthe above
185 Which oI the Iollowing are broad categories oI participants in the derivatives market
a Hedgers
b Speculators Ans.d
c Arbitrageurs
d All oI the above
19 The Ii rst stock index Iutures contract was traded at
186 Chicago Board oI Trade
b Kansas City Board oI Trade. Ans.b
c Chicago Board Options Exchange
d London International Financial Futures and Options Exchange
187 The prices oI derivatives with the prices oI the underlying at the expiration oI the derivative contract
a Diverge
b Converge
c Split Ans.b
d Break up
188 The derivatives market helps to
a transIer risks
b higher trading volumes
c acts as a catalyst Ior new entrepreneurial activity. Ans.e
d discovery oI Iuture as well as current prices.
e All oI the above
189 The OTC derivatives markets have the Iollowing Ieatures compared to exchange-traded derivatives
a There are Iormal centralized limits on individual positions, leverage, or margining
b There are Iormal rules Ior risk and burden-sharing
c There are Iormal rules or mechanisms Ior ensuring market stability and integrity, and Ior saIeguarding the collective interests oI market part
d The management oI counter-party (credit) risk is decentralized and located within indiv Ans d
e All oI the above
190 Futures trading commenced Ii rst on
a Chicago Mercantile Exchange
b Chicago Board oI Trade
c Chicago Board Options Exchange
d London International Financial Futures and Options Exchange Ans.b
191 The underlying asset Ior a derivative contract can be
a Equity
b Commodities
c Interest rate
d Any oI the above Ans.d
192 Derivatives Ii rst emerged as products
a Speculative Ans.b
b Hedging
c Risky
d Volatility
193 Who are the participants in the derivatives market?
a Hedgers
b Speculators
c Arbitrageurs
d All oI the above Ans.d
194 The Iirst exchange traded Ii nancial derivative in India commenced with the trading oI
a Index Iutures
b Index options
c Stock options Ans.a
d Interest rate Iutures
195 OTC derivatives are considered risky because
a There is no Iormal margining system.
b They are not settled on a clearing house.
c They do not Iollow any Iormal rules or mechanisms Ans.d
d All oI the above
196 Which oI the Iollowing is not an example oI a derivative on security derivative?
a Index Iutures
b Index options
c Interest rate Iutures Ans.c
d Stock Iutures
197 Which oI the Iollowing is correct
1.derivatives that trade on an exchange are called exchange traded derivatives,
2.whereas privately negotiated derivative contracts are called OTC contracts
3.Exchange traded derivatives have no Iormal centralized limits on individual positions, leverage, or margining,
a 1 & 2 ans.a
b 1 & 3
c 2 & 3
d All oI the above
198 The derivatives trading on the NSE commenced with S&P CNX NiIty Index Iutures on
a July 2, 2001
b June 12, 2000 Ans.b
c November 9, 2001
d November 9, 2000
199 Single stock Iutures were launched on .
a July 2, 2001
b June 12, 2000
c November 9, 2001 Ans.c
d November 9, 2000
200 The trading in index options on NSE commenced on Ans.a
a June 4, 2001
b July 2, 2001
c June 12, 2000
d November 9, 2001
201 Trading in options on individual securities commenced on.
a July 2, 2001 Ans.a
b June 12, 2000
c November 9, 2001
d November 9, 2000
1.In India a new contract is introduced on the next trading day Iollowing the expiry oI the near month contract.
2.Currently, the derivatives contracts have a maximum oI 3-month expiration cycles in India.
3.Both in terms oI volume and turnover, NSE is the largest derivatives exchange in India.
a 1 &2
b 1&3
c 2&3 Ans.d
d None oI the abve
203 The Iutures and options trading system oI NSE, called
a NEAT trading system
b NEAT-F&O trading system
c BOLT system Ans.b
d MULTEX
204 An lndex ls __________________
a a number whlch measures Lhe growLh ln a seL of values over a perlod of Llme
b a number whlch measures Lhe change ln a seL of values over a perlod of Llme Ansb
c a number whlch measures Lhe decreases ln a seL of values over a perlod of Llme
d a number whlch measures Lhe lncreases ln a seL of values over a perlod of Llme
e l am noL aLLendlng Lhe quesLlon
203 a sLock lndex number ls Lhe currenL relaLlve value of a ________ of Lhe prlces of a predeflned group of equlLles
a sum
b slmple
c welghLed average Ansc
d movlng
206 A markeL lndex ls very lmporLanL for lLs use
1as a baromeLer for markeL behavlour
2 as a benchmark porLfollo performance Ansd
3 as an underlylng ln derlvaLlve lnsLrumenLs llke lndex fuLures and
4 ln passlve fund managemenL by lndex funds
a 123
b 134
c 234
d All of Lhe above
207 A good lndex ls a Lradeoff beLween Ansa
a dlverslflcaLlon and llquldlLy
b rlsk and reLurn
c volaLlllLy and rlsk
d llquldlLy and reLurn
208 MosL of Lhe commonly followed sLock markeL lndexes are of Lhe followlng Lwo Lypes
1MarkeL caplLallzaLlon welghLed lndex
2prlce welghLed lndex Ansa
3slmple average lndex
4movlng average lndex
a 1 2
b 13
c 2 4
d 1 4
209 ln a markeL caplLallzaLlon welghLed lndex each sLock ln Lhe lndex affecLs Lhe lndex value ln proporLlon Lo_______________
a Lhe markeL value of all shares ouLsLandlng Ansa
b Lhe markeL value of shares
c Lhe markeL value of all llquld shares
d Lhe face value of all shares ouLsLandlng
7 A prlce welghLed lndex ls one LhaL glves a welghL Lo each sLock LhaL ls proporLlonal Lo lLs _____________
210 face value
b sLock prlce Ansb
c purchaslng prlce
d selllng prlce
211 now S 300 and Lhe l1SL100 have Lhe meLhod of lndex calculaLlon
a slmple meLhod
b welghLed average meLhod Ansd
c movlng meLhod
d lree floaL meLhod
212 ln Lhe markeL caplLallzaLlon welghLed meLhod lndex can calculaLed by
a CurrenL markeL caplLallsaLlon*8ase value / base markeL caplLallsaLlon Ansa
b CurrenL markeL caplLallsaLlon / 8ase value*base markeL caplLallsaLlon
c 8ase markeL caplLallsaLlon * 8ase value / CurrenL markeL caplLallsaLlon
d 8ase markeL caplLallsaLlon / 8ase value *CurrenL markeL caplLallsaLlon
213 Whlch of Lhe followlng ls false
a CurrenL markeL caplLallzaLlon Sum of (currenL markeL prlce * ouLsLandlng shares) of all secuAnsd
b 8ase markeL caplLallzaLlons Sum of (markeL prlce * lssue slze) of all securlLles as on base daLe
c ln Lhe markeL caplLallzaLlon welghLed meLhod lndexCurrenL markeL caplLallsaLlon*8ase value / base markeL caplLallsaLlon
d none of Lhe above
214 A good markeL lndex should have followlng aLLrlbuLes
a lL should capLure Lhe behavlour of a large varleLy of dlfferenL porLfollos ln Lhe markeL
b 1he sLocks lncluded ln Lhe lndex should be hlghly llquld Ansd
c lL should be professlonally malnLalned
d All of Lhe above
213 Whlch of Lhefollowlng ls false
a A good markeL lndex should accuraLely reflecL Lhe behavlour of Lhe overall markeL as well as o Ansd
b MarkeL lmpacL cosL ls a measure of Lhe llquldlLy of Lhe markeL
c MarkeL lmpacL cosL reflecLs Lhe cosLs faced when acLually Lradlng an lndex
d none of Lhe above
216 lndex derlvaLlves are derlvaLlve conLracLs whlch have Lhe _________ as Lhe underlylng
a luLure
b opLlons
c lndex Ansc
d AsseL
1he mosL popular lndex derlvaLlves conLracLs Lhe world over are lndex fuLures and lndex opLlons
An lndex fund ls a fund LhaL Lrles Lo repllcaLe Lhe lndex reLurns
217 AppllcaLlons of lndex are
a luLures markeLs can be used for creaLlng synLheLlc lndex funds
b lndex funds can use Lhe fuLures markeL for Lhe purpose of spreadlng lndex sales or purchases over a perlod of Llme
c 1he lndex fund uses parL of lLs money as margln on Lhe fuLures markeL and Lhe resL ls lnvesLeAnsd
d All of Lhe above
218 nlfLy lncludes Lhe mosL llquld sLocks LhaL Lrade on nSL
a 30
b 100
c 300 Ansd
d 30
219 1he lndlan company whlch provldes professlonal lndex managemenL servlces ls
a PSL Ansa
b nSCCL
c S
d C8lSlL
220 lmpacL cosL measures Lhe
a volaLlllLy of Lhe sLock
b LlquldlLy of Lhe sLock Ansb
c 8eLurn on a sLock
d none of above
221
Assume LhaL Lhe base value of a markeL caplLallzaLlon welghLed lndex were 1000 and Lhe
base markeL caplLallzaLlon were 8s33000 crore lf Lhe currenL markeL caplLallzaLlon ls
8s77000 crore Lhe lndex ls aL
a 2200
b 2230 Ansa
c 1200
d 1330
222
1he markeL lmpacL cosL on a Lrade of 8s3 mllllon of Lhe full nlfLy works ouL Lo be abouL
03 1hls means LhaL lf nlfLy ls aL 2000 a buy order wlll go Lhrough aL roughly
a 2010
b 2030 Ansa
c 2300
d none of Lhe above
223 lndex funds are_________ managed
a AcLlvely
b asslvely Ansb
c lamlly
d none of Lhe above
224 llSLmeans
a lndla l1 Servlces roducLs LlmlLed
b lndla lndex Servlces roducLs LlmlLed b
c lndla lndex SLandared roducLs LlmlLed
d lndla lndex SLandared oors LlmlLed
223 1he sallenL feaLures of forward conLracLs are
a 1hey are bllaLeral conLracLs and hence exposed Lo counLerparLy rlsk
b
Lach conLracL ls cusLom deslgned and hence ls unlque ln Lerms of conLracL slze explraLlon
daLe and Lhe asseL Lype and quallLy
c 1he conLracL prlce ls generally noL avallable ln publlc domaln
d Cn Lhe explraLlon daLe Lhe conLracL has Lo be seLLled by dellvery of Lhe asseL e
e all of Lhe above
226 LlmlLaLlons of forward markeLs
a Lack of cenLrallzaLlon of Lradlng
b llllquldlLy d
c CounLerparLy rlsk
d all of Lhe above
e none of Lhe above
227 fuLures conLracLs are
a sLandardlzed
b exchange Lraded
c sLandardlzed and exchange Lraded c
d none of Lhe above
228 1he sLandardlzed lLems ln a fuLures conLracL are
a - CuanLlLy of Lhe underlylng
b - CuallLy of Lhe underlylng e
c - 1he daLe and Lhe monLh of dellvery
d - 1he unlLs of prlce quoLaLlon and mlnlmum prlce change
e All of Lhe above
229 ulsLlncLlon beLween fuLures and forwards
luLures lorwards
11rade on an organlzed exchange C1C ln naLure
2SLandardlzed conLracL Lerms CusLomlsed conLracL Lerms
3hence more llquld hence less llquld
48equlres margln paymenLs no margln paymenL
3lollows dally seLLlemenL SeLLlemenL happens aL end of perlod
a 123
b 234 e
c 134 3
d 2343
e All of Lhe above
230 1he prlce aL whlch an asseL Lrades ln Lhe spoL markeL
a SpoL prlce a
b SLlke prlce
c fuLure prlce
d c0nLracL prlce
e all of Lhe above
231 1he prlce aL whlch Lhe fuLures conLracL Lrades ln Lhe fuLures markeL
a SpoL prlce
b SLlke prlce
c fuLure prlce
d cnLracL prlce c
e all of Lhe above
232 1he amounL of asseL LhaL has Lo be dellvered under one conLracL
a ConLracL slze
b SLlke prlce a
c fuLure prlce
d cnLracL prlce
e all of Lhe above
233 1he conLracL slze on nSLs fuLures markeL ls ______nlfLles
a 200
b 100 c
c 30
d 30
e none pf Lhe above
234
1he sLorage cosL plus Lhe lnLeresL LhaL ls pald Lo flnance Lhe asseL less Lhe lncome earned
on Lhe asseL ls
a CosL of carry a
b lnLeresL payable
c AssesL cosL
d All of Lhe above
e none of Lhe above
233
1he amounL LhaL musL be deposlLed ln Lhe margln accounL aL Lhe Llme a fuLures conLracL ls
fl rsL enLered lnLo ls known as
a CosL of carry c
b AssesL cosL
c lnlLlal margln
d All of Lhe above
e none of Lhe above
236
ln Lhe fuLures markeL aL Lhe end of each Lradlng day Lhe margln accounL ls ad[usLed Lo
refecL Lhe lnvesLors galn or loss dependlng upon Lhe fuLures closlng prlce 1hls ls called
_________
a CosL of carry
b marklngLomark b
c lnlLlal margln
d AssesL cosL
e none of Lhe above
237
lf Lhe balance ln Lhe margln accounL falls below Lhe malnLenance margln Lhe lnvesLor
recelves a margln call and ls expecLed Lo________ Lhe margln accounL Lo Lhe lnlLlal margln
level before Lradlng commences on Lhe nexL day
a Lop up
b reduce a
c cancell
d All of Lhe above
e none of Lhe above
238
______of an opLlon ls Lhe one who by paylng Lhe opLlon premlum buys Lhe rlghL buL noL
Lhe obllgaLlon Lo exerclse hls opLlon on Lhe seller/wrlLer
a buyer a
b seller
c wrlLLer
d all of Lhe above
e none of Lhe above
239
__________of a call/puL opLlon ls Lhe one who recelves Lhe opLlon premlum and ls Lhereby
obllged Lo sell/buy Lhe asseL lf Lhe buyer exerclses on hlm
a buyer
b wrlLer b
c all of Lhe above
d none of Lhe above
e
240 1he prlce speclfl ed ln Lhe opLlons conLracL ls known as Lhe
a spoL prlce
b fuLure prlce
c SLrlke prlce c
d all of Lhe above
e none of Lhe above
241 __________ are opLlons LhaL can be exerclsed aL any Llme upLo Lhe explraLlon daLe
a Amerlcan opLlons a
b Luropean opLlons
c all of Lhe above
d none of Lhe above
242 __________ are opLlons LhaL can be exerclsed only on Lhe explraLlon daLe lLself
a Amerlcan opLlons
b Luropean opLlons
c all of Lhe above b
d none of Lhe above
243
A call opLlon on Lhe lndex ls sald Lo be lnLhemoney when Lhe currenL lndex sLands aL a
level _________
a less Lhan Lhe sLrlke prlce
b hlgher Lhan Lhe sLrlke prlce b
c equal Lo Lhe sLrlke prlce
d all of Lhe above
e none of Lhe above
244 An opLlon on Lhe lndex ls aLLhemoney when Lhe currenL lndex ________
a less Lhan Lhe sLrlke prlce c
b hlgher Lhan Lhe sLrlke prlce
d all of Lhe above
e none of Lhe above
243
A call opLlon on Lhe lndex ls ouLofLhemoney when Lhe currenL lndex sLands aL a level
whlch ls ________
a less Lhan Lhe sLrlke prlce
b hlgher Lhan Lhe sLrlke prlce a
d all of Lhe above
e none of Lhe above
246 lf Lhe call ls C1M lLs lnLrlnslc value ls______
a zero
b 0ne a
c Lwo
d none of Lhe above
e
247 1he Llme value of an opLlon ls Lhe dlfference beLween lLs ____________
a premlum and lLs srlke prlce
b premlum and lLs spoL prlce
c premlum and lLs lnLrlnslc value c
d all of Lhe above
e none of Lhe above
248 AL explraLlon Lhe Llme valueof an opLlon ls ________
a CraLer Lhan one
b less Lhan one
c zero c
d all of Lhe above
e none of Lhe above
249 ulsLlncLlon beLween fuLures and opLlons
luLures CpLlons
a Lxchange Lraded wlLh novaLlon Same as fuLures
b Lxchange deflnes Lhe producL Same as fuLures
c rlce ls zero sLrlke prlce moves SLrlke prlce ls flxed prlce moves
d rlce ls zero rlce ls always poslLlve
e Llnear payoff nonllnear payoff g
d 8oLh long and shorL aL rlsk Cnly shorL aL rlsk
e All of Lhe above
230 lnLhemoney opLlon puL opLlon means
a spoL prlce sLrlke prlce
b spoL prlce sLrlke prlce c
c spoL prlce sLrlke prlce
d all of Lhe above
e none of Lhe above
231 ALLhemoney opLlonc puL opLlons ls
b spoL prlce sLrlke prlce b
c spoL prlce sLrlke prlce
d all of Lhe above
e none of Lhe above
232 CuLofLhemoney opLlon puL opLlon ls
b spoL prlce sLrlke prlce
c spoL prlce sLrlke prlce a
d all of Lhe above
e none of Lhe above
233 when sLarL nse lndex opLlons ln lndla
a 2000 [une
b 2001 [une b
c 2002 [une
d 2003 [une
234 when sLarL nse lndex fuLures ln lndla
a 2000 [une
b 2001 [une a
c 2002 [une
d 2003 [une
233
_________ ranks flrsL ln Lhe world ln Lerms of number of conLracLs Lraded ln slngle sLock
fuLures
a nSL a
b 8SL
c uow !ones
d nlkkl
e none of Lhe above
236 luLures conLracLs have
a non llnear payoffs
b llnear payoffs b
237
1he payoff for a person who buys a fuLures conLracL ls slmllar Lo Lhe payoff for a person
who holds_______
a puL opLlons
b call opLlon
c an asseL c
d all of Lhe above
e none of Lhe above
238
When Lhe lndex moves up Lhe long fuLures poslLlon sLarLs maklng______ and when Lhe
lndex moves down lL sLarLs maklng __________
a losses proflLs
b proflLslosses b
c no proflLs losses
d no losses proflLs
e none of Lhe above
239
When Lhe lndex moves down Lhe shorL fuLures poslLlon sLarLs maklng______ and when
Lhe lndex moves up lL sLarLs maklng ________
a losses proflLs
b proflLslosses b
c no proflLs losses
d no losses proflLs
e none of Lhe above
260 how can reduce rlsk for long porLfollo poslLlon lnvesLor
a long nlfLy b
b shorL nlfLy
c all of Lhe above
d none of Lhe above
261
Suppo A have a porLfollo of 8s 1 mllllon whlch has a beLa of 123 1hen a compleLe hedge
ls obLalned by selllng _______ mllllon of nlfLy fuLures
a 123
b 13
c 2
d 23
e none of Lhe above
262 when a lnvesLor belleves Lhe markeL ls bulllsh Lhen he __________
a buy fuLures
b sell fuLures
c all of Lhe above
d none of Lhe above
263 when a lnvesLor belleves Lhe markeL ls bearlsh Lhen he __________
a buy fuLures
b sell fuLures b
c all of Lhe above
d none of Lhe above
264 ln overprlced markeL an ArblLrager do
a buy fuLures sell spoL
b buy spoL sell fuLures b
c buy only spoL
d sell only fuLures
e none of Lhe above
263 ln underprlced markeL an ArblLrager do
a buy fuLures sell spoL
b buy spoL sell fuLures b
c buy only spoL
d sell only fuLures
e none of Lhe above
267
1he fuLures opLlons Lradlng sysLem of nSL called nLA1lC Lradlng sysLem
provldes a fully auLomaLed screenbased Lradlng for nlfLy fuLures opLlons and
sLock fuLures opLlons on a naLlonwlde basls as well as an onllne monlLorlng and
survelllance mechanlsm
268 WhaL are enLlLles ln Lhe Lradlng sysLem
a 1radlng members
b clearlng members
c professlonal clearlng members e
d parLlclpanLs
e All of Lhe above
269 Whlch of Lhe followlng ls false ln Lhe case of a Lradlng member
a 1radlng members are members of nSL
b
1hey can Lrade elLher on Lhelr own accounL or on behalf of Lhelr cllenLs lncludlng
parLlclpanLs e
c 1he exchange asslgns a Lradlng member lu Lo each Lradlng member
d Lach Lradlng member can have more Lhan one user
e none of Lhe above
270 Whlch of Lhe followlng ls false ln Lhe case of a Lradlng member
a
1he number of users allowed for each Lradlng member ls noLlfled by Lhe exchange
from Llme Lo Llme
b
Lach user of a Lradlng member musL be reglsLered wlLh Lhe exchange and ls
asslgned an unlque user lu
c
1he unlque Lradlng member lu funcLlons as a reference for all orders/Lrades of
dlfferenL users e
d All of Lhe above
e none of Lhe above
271 Whlch of Lhe followlng ls Lrue ln Lhe case of a Lradlng member
11Ladlg member lu ls common for all users of a parLlcular Lradlng member
2lL ls Lhe responslblllLy of Lhe Lradlng member Lo malnLaln adequaLe conLrol over
persons havlng access Lo Lhe flrms user lus
a 1 c
b 2
c All of Lhe above
d none of Lhe above
272 Lach Lradlng member can have__________
a more Lhan one user a
b one user
c 1wo user
d no user
273 1he exchange asslgns a _____________ Lo each Lradlng member
a user lu
b CllenL lu d
c Lradlng member code
d Lradlng member lu
274 1he number of users allowed for each Lradlng member ls noLlfled by Lhe ______ from Llme Lo Llme
a SL8l
b Lxchange b
c 8roker
d Sub broker
273 Lach user of a Lradlng member musL be reglsLered wlLh Lhe exchange and ls asslgned an unlque__________
a user lu
b CllenL lu
c Lradlng member code a
d Lradlng member lu
276 Clearlng members are members of ________
a nSCCL a
b Lxchange
c 8roker
d Sub broker
278
___________ carry ouL rlsk managemenL acLlvlLles and conflrmaLlon/lnqulry of
Lrades Lhrough Lhe Lradlng sysLem
a 8roker
b Sub broker
c cleotloq membet c
d 1toJloq membet
279 A professlonal clearlng members ls a clearlng member who ls noL a _________
a 8ank
b 1radlng member b
c CusLodlans
d none of Lhe above
280 A parLlclpanL ls a ______of Lradlng members llke flnanclal lnsLlLuLlons
a toket
b clleot
c 5ob btoket b
d oset
a parLlclpanL ls a cllenL of Lradlng members llke flnanclal lnsLlLuLlons
b
1hese cllenLs may Lrade Lhrough mulLlple Lradlng members buL seLLle Lhrough a
slngle clearlng
c All of Lhe above d
d none of Lhe above
282 When any order enLers Lhe Lradlng sysLem lL ls an __________________
a ouLsLandlng order
b passlve order
c acLlve order c
d sLop loss order
283
When any order does noL maLch Lhe order becomes ___________ and goes and
slLs ln Lhe respecLlve ouLsLandlng order book ln Lhe sysLem
a acLlve order
b passlve order b
c markeL order
d ouLsLandlng order
284
ln Lhe lC Lradlng sofLware a Lradlng member has Lhe faclllLy of deflnlng a
hlerarchy amongsL users of Lhe sysLem 1hls hlerarchy comprlses
a corporaLe manager
b branch manager
c dealer d
d All of Lhe above
283
________________ ls asslgned Lo a user placed aL Lhe hlghesL level ln a Lradlng fl
rm
a cotpotote moooqet
b branch manager
c dealer a
d All of Lhe above
286
_____________can perform all Lhe funcLlons such as order and Lrade relaLed
acLlvlLles recelvlng reporLs for all branches of Lhe Lradlng member flrm and also all
dealers of Lhe flrm
a cotpotote moooqet
b branch manager a
c dealer
d All of Lhe above
287 1 A ___________can deflne exposure llmlLs for Lhe branches of Lhe fl rm
a cotpotote moooqet a
b branch manager
c dealer
d All of Lhe above
288
A corporaLe manager can deflne exposure llmlLs for Lhe branches of Lhe fl rm 1hls
faclllLy ls avallable only Lo Lhe corporaLe manager1hls ls
a 18uL a
b lALSL
289
1he branch manager ls a Lerm asslgned Lo a user who ls placed under Lhe corporaLe
manager
1he branch manager can perform and vlew order and Lrade relaLed acLlvlLles for
____________
a all dealers under LhaL branch
b all dealers under all branch a
c one dealer under LhaL branch
d none of Lhe above
290 uealers are users aL Lhe______ mosL level of Lhe hlerarchy
a hlgher
b lower
c mlddle b
d none of Lhe above
291
A _______ can perform vlew order and Lrade relaLed acLlvlLles only for oneself and
does noL have access Lo lnformaLlon on oLher dealers under elLher Lhe same branch
or oLher branches
a 8ranch Manager
b CorporaLe Manager
c uealer c
d All of Lhe above
292 Clearing member corporate manager can view
a
outstanding orders, previous trades and net position oI his client trading members
by putting the TM ID (Trading member identiIi cation) , the Branch ID and Dealer ID
blank.
b
outstanding orders, previous trades and net position oI his client trading members by
putting the TM ID (Trading member identiIi cation) and the Branch ID and leaving
Dealer ID blank.
c
putting the TM ID (Trading member identiIi cation) and leaving the Branch ID and
Dealer ID blank. c
d
without putting the TM ID (Trading member identiIi cation) and leaving the Branch
ID and and Dealer ID blank.
293 Clearing member and trading member corporate manage can view
a
outstanding orders, previous trades and net position oI his client trading members
by putting the TM ID (Trading member identiIi cation) , the Branch ID and Dealer ID
blank.
b
putting the TM ID (Trading member identiIi cation) and the Branch ID and leaving
Dealer ID blank.
c
putting the TM ID (Trading member identiIi cation) and leaving the Branch ID and
Dealer ID blank. c
d
without putting the TM ID (Trading member identiIi cation) and leaving the Branch
ID and and Dealer ID blank.
294 Clearing member and trading member corporate manager can view
a
Outstanding orders, previous trades and net positions entered Ior himselI by entering
his own TM ID, Branch ID and User ID. This is his deIault screen.
b
Outstanding orders, previous trades and net position entered Ior his branch by
entering his TM ID and Branch ID Iields
c
Outstanding orders,previous trades, and net positions entered Ior any oI his
users/dealers by entering his TM ID, Branch ID and user ID Iields d
d All of Lhe above
293 Clearing member and trading member dealer can view
a only view requests entered by him. a
b only view requests entered by all dealer
c only view requests entered by branch manager
d only view requests entered by corprate manager
296 Trading member corporate manager can view
a
Outstanding requests and activity log Ior requests entered by him by entering his own
User IDs.
b
Branch and User IDs. b
c
Outstanding requests and activity log Ior requests entered by him by leaving his own
Branch and User IDs.
d
Branch IDs.
297 Trading member corporate manager can view
a Outstanding requests entered by his dealers and/or branch managers by entering the Branch and User IDs
b Outstanding requests entered by his dealers and/or branch managers by leaving the Branch and User IDs
c
Outstanding requests entered by his dealers and/or branch managers by either
entering the Branch and/or User IDs or leaving them blank
c
d only Outstanding requests entered by branch managers by either entering the Branch and
298 %rading member branch manager can view
298
Branch and User IDs. This is his deIault screen.
b
Outstanding requests entered by his users either by Ii lling the User ID Ii eld with a
speciIi c user or leaving the User ID Ii eld blank.
c All of Lhe above
d none of Lhe above
299 %rading member dealer
a only view requests entered by him.
b only view requests entered by all dealer a
c only view requests entered by branch manager
d only view requests entered by corprate manager
300 A Lradlng member musL ensure compllance parLlcularly wlLh relaLlon Lo Lhe followlng whlle deallng wlLh cllenLs
a lllllng of know ?our cllenL form
b LxecuLlon of CllenL 8roker agreemenL d
c 1lmely execuLlon of orders as per Lhe lnsLrucLlon of cllenLs ln respecLlve cllenL codes
d All of Lhe above
301 A Lradlng member do noL ensure compllance parLlcularly wlLh relaLlon Lo Lhe followlng whlle deallng wlLh cllenLs
a CollecLlon of adequaLe marglns from Lhe cllenL
b MalnLalnlng no separaLe cllenL bank accounL for Lhe segregaLlon of cllenL money b
c 1lmely lssue of conLracL noLes as per Lhe prescrlbed formaL Lo Lhe cllenL
d Lnsurlng Llmely payln and payouL of funds Lo and from Lhe cllenLs
302 A Lradlng member musL ensure compllance parLlcularly wlLh relaLlon Lo Lhe followlng whlle deallng wlLh cllenLs
a Avoldlng recelpL and paymenL of cash and deal only Lhrough accounL payee cheques
b Sendlng Lhe perlodlcal sLaLemenL of accounLs Lo cllenLs
c MalnLalnlng unlque cllenL code as per Lhe regulaLlons d
d All of Lhe above
303
A day order as Lhe name suggesLs ls an order whlch ls valld for Lhe day on whlch lL ls
enLered lf Lhe order ls noL execuLed durlng Lhe day _____________________
a Lhe sysLem cancels Lhe order auLomaLlcally aL Lhe end of Lhe day a
b Lhe sysLem Lransfer Lhe order Lo nexL day auLomaLlcally aL Lhe end of Lhe day
c Lhe sysLem cancels Lhe order auLomaLlcally aL Lhe end of Lhe monLh
d Lhe sysLem noL cancels Lhe order aL Lhe end of Lhe day
304
An lCC order allows Lhe user Lo buy or sell a conLracL as soon as Lhe order ls
released lnLo Lhe sysLem falllng whlch Lhe order ls cancelled from Lhe sysLem
arLlal maLch ls posslble for Lhe order and _________________________
a Lhe unmaLched porLlon of Lhe order ls Lransfer Lo nexL day lmmedlaLely
b Lhe unmaLched porLlon of Lhe order ls cancelled aL Lhe end of Lhe day c
c Lhe unmaLched porLlon of Lhe order ls cancelled lmmedlaLely
d Lhe unmaLched porLlon of Lhe order ls noL cancelled lmmedlaLely
303
_________ faclllLy allows Lhe user Lo release an order lnLo Lhe sysLem afLer Lhe
markeLprlce of Lhe securlLy reaches or crosses a Lhreshold prlce
a SLop loss a
b lCC
c uay order
d 1rlger prlce
306 lor Lhe sLoploss sell order Lhe Lrlgger prlce has Lo be ________ Lhe llmlL prlce
a Less Lhan
b greaLer Lhan b
c equal Lo
d none of Lhe above
307
__________ are orders for whlch no prlce ls speclfled aL Lhe Llme Lhe order ls
enLered lor such orders Lhe sysLem deLermlnes Lhe prlce
a MarkeL orders
b LlmlL prlce a
c ro
d Cll
308 rlce aL whlch an order geLs Lrlggered from Lhe sLoploss book
a MarkeL orders
b LlmlL prlce d
c ro
d 1rlgger prlce
309 __________means LhaL Lhe orders are enLered on Lhe Lradlng members own accounL
a MarkeL orders
b LlmlL prlce
c ro c
d 1rlgger prlce
310 _________ means LhaL Lhe Lradlng member enLers Lhe orders on behalf of a cllenL
a Cll
b LlmlL prlce a
c ro
d 1rlgger prlce
311 1he followlng wlndows are dlsplayed ln Lhe markeL waLch wlndow on Lhe Lrader worksLaLlon screen
a 1lLle bar
b 1lcker wlndow of fuLures and opLlons markeL d
c Snap quoLe
d All of Lhe above
312 1he followlng wlndows are noL dlsplayed ln Lhe markeL waLch wlndow on Lhe Lrader worksLaLlon screen
a 1oolbar
b MarkeL waLch wlndow c
c ,otket by ptlce
d lnqulry wlndow
e
l om oot otteoJloq tbe poestloo
313 1he followlng wlndows are noL dlsplayed ln Lhe markeL waLch wlndow on Lhe Lrader worksLaLlon screen
a SysLem message wlndow
b Crder/Lrade wlndow e
c SysLem message wlndow
d Crder/Lrade wlndow
e none of Lhe above
a 1he markeL waLch wlndow ls Lhe Lhlrd wlndow from Lhe Lop of Lhe screen whlch ls always vlslble Lo Lhe user
b lL dlsplays Lradlng lnformaLlon for conLracLs selecLed by Lhe user c
c 1he user does noL geL a broadcasL of all Lhe cash markeL securlLles on Lhe screen
d none of Lhe above
313
ulsplay of Lradlng lnformaLlon relaLed Lo cash markeL securlLles wlll be
on___________ formaLle Lhe dealer can only vlew Lhe lnformaLlon on cash markeL
buL cannoL Lrade ln Lhem Lhrough Lhe sysLem
a 8ead only a
b 1rade only
c 8ead and Lrade only
d 1rade and 8ead only
316 1he lnqulry wlndow enables Lhe user Lo vlew lnformaLlon such as
a MarkeL by rlce(M8)
b revlous 1rades(1)
c CuLsLandlng Crders(CC) d
d All of Lhe above
a CuLsLandlng Crders(CC)
b AcLlvlLy log(AL)
c 1oolbar c
d Crder SLaLus(CS)
a 1lcker wlndow of fuLures and opLlons markeL a
b MarkeL lnqulry(Ml)
c MarkeL MovemenL(MM)
d AcLlvlLy log(AL)
e All of Lhe above
319
1he purpose of Lhe ____________ls Lo enable Lhe user Lo vlew passlve orders ln Lhe
markeL aggregaLed aL each prlce and are dlsplayed ln order of besL prlces
a MarkeL by rlce(M8) a
b revlous 1rades(1)
c CuLsLandlng Crders(CC)
d AcLlvlLy log(AL)
320 Whlch of Lhe followlng are Lrue ln Lhe case MarkeL by rlce(M8)
a
1he purpose of Lhe M8 ls Lo enable Lhe user Lo vlew passlve orders ln Lhe markeL
aggregaLed aL each prlce and are dlsplayed ln order of besL prlces d
b 1he wlndow can be lnvoked by presslng Lhe l6 key
c lf a parLlcular conLracL or securlLy ls selecLed Lhe deLalls of Lhe selecLed conLracL or securlLy can be seen on Lhls screen
d All of Lhe above
a 1he markeL lnqulry screen can be lnvoked by uslng Lhe ll 1 key
b
lf a parLlcular conLracL or securlLy ls selecLed Lhe deLalls of Lhe selecLed conLracL or
selecLed securlLy defaulLs ln Lhe selecLlon screen or else Lhe currenL poslLlon ln Lhe
markeL waLch defaulLs d
c
1he fl rsL llne of Lhe screen glves Lhe lnsLrumenL Lype symbol explry conLracL
sLaLus LoLal Lraded quanLlLy llfe Llme hlgh and llfe Llme low
d none of Lhe above
11he fl rsL llne of Lhe screen glves Lhe lnsLrumenL Lype symbol explry conLracL
sLaLus LoLal Lraded quanLlLy llfe Llme hlgh and llfe Llme low
21he second llne dlsplays Lhe closlng prlce open prlce hlgh prlce low prlce lasL
Lraded prlce and lndlcaLor for neL change from closlng prlce
31he Lhlrd llne dlsplays Lhe lasL Lraded quanLlLy lasL Lraded Llme and Lhe lasL Lraded daLe
1he fourLh llne dlsplay very lmporLanL lnformaLlon namely Lhe carrylng cosL ln percenLage Lerms
41he flfLh llne dlsplays Lhe closlng open lnLeresL Lhe openlng open lnLeresL day
hlgh open lnLeresL day low open lnLeresL currenL open lnLeresL llfe Llme hlgh open
lnLeresL llfe Llme low open lnLeresL and neL change from closlng open lnLeresL
a 1 3
b 2 3
c 4 3 c
d none of Lhe above
323
ln markeL lnqulry screen 1he _______ llne of Lhe screen glves Lhe lnsLrumenL Lype
symbol explry conLracL sLaLus LoLal Lraded quanLlLy llfe Llme hlgh and llfe Llme low
a flrsL a
b second
c Lhlrd
d forLh
e flfLh
324
ln markeL lnqulry screen 1he __________ llne dlsplays Lhe closlng prlce open prlce
hlgh prlce low prlce lasL Lraded prlce and lndlcaLor for neL change from closlng
prlce
a flrsL
b second b
c Lhlrd
d forLh
e flfLh
323 ln markeL lnqulry screen 1he ______ llne dlsplays Lhe lasL Lraded quanLlLy lasL Lraded Llme and Lhe lasL Lraded daLe
a flrsL
b second
c Lhlrd c
d forLh
e flfLh
326
ln markeL lnqulry screen 1he ________llne dlsplays Lhe closlng open lnLeresL Lhe
openlng open lnLeresL day hlgh open lnLeresL day low open lnLeresL currenL open
lnLeresL llfe Llme hlgh open lnLeresL llfe Llme low open lnLeresL and neL change
from closlng open lnLeresL
a flrsL
b second
c Lhlrd d
d forLh
e flfLh
327
ln markeL lnqulry screen 1he _______llne dlsplay very lmporLanL lnformaLlon
namely Lhe carrylng cosL ln percenLage Lerms
a flrsL
b second e
c Lhlrd
d forLh
e flfLh
328
lor boLh Lhe fuLures and Lhe opLlons markeLwhlle enLerlng orders on Lhe Lradlng
sysLem members are requlred Lo ldenLlfy orders as
belng______________________
a proprleLary or cllenL orders a
b proprleLary or user orders
c user or cllenL orders
d none of Lhe above
a
1he fuLures markeL ls a zero sum game le Lhe LoLal number of long ln any conLracL
always equals Lhe LoLal number of shorL ln any conLracL
b 1he LoLal number of ouLsLandlng conLracLs(long/shorL) aL any polnL ln Llme ls called Lhd
c Cpen lnLeresL flgure ls a good lndlcaLor of Lhe llquldlLy ln every conLracL
d none of Lhe above
330 ln lnLernaLlonal exchanges lL ls found LhaL open lnLeresL fuLure conLracL ls ln near monLh explry conLracLs
a mlnlmum b
b maxlmum
c ls equal Lo
d none of Lhe above
331
1he nLA1 lC Lradlng sysLem also enables Lo enLer spread/comblnaLlon Lrades
1hls enables Lhe user Lo lnpuL Lwo or Lhree orders slmulLaneously lnLo Lhe markeL
a only one order lnLo Lhe markeL
b Lwo orders slmulLaneously lnLo Lhe markeL
c Lwo or Lhree orders slmulLaneously lnLo Lhe markeL c
d none of Lhe above
332 1he feaLures of baskeLLradlng faclllLy
1ln order Lo provlde a faclllLy for easy arblLrage beLween fuLures and cash markeLs
nSL lnLroduced baskeLLradlng faclllLy
21hls enables Lhe generaLlon of porLfollo offllne order flles ln Lhe derlvaLlves
Lradlng sysLem and lLs execuLlon ln Lhe cash segmenL
3A Lradlng member can buy or sell a porLfollo Lhrough a slngle order once he
deLermlnes lLs slze
41he sysLem auLomaLlcally works ouL Lhe quanLlLy of each securlLy Lo be boughL or
sold ln proporLlon Lo Lhelr welghLs ln Lhe porLfollo
a 1234
b 123 a
c 234
d 134
333 1he lC segmenL of nSL provldes Lradlng faclllLles for Lhe followlng derlvaLlve lnsLrumenLs
a lndex based fuLures
b lndex based opLlons d
c lndlvldual sLock opLlons
d All of Lhe above
334 All fuLure and opLlons conLracL explre on Lhe lasL ______________ of every monLh
a 1uesday
b Wednesday
c 1hursday c
d lrlday
333 Mlnlmum loL slze of fuLures conLracLs on nSLs derlvaLlves markeL
a 100 c
b 200
c 30
d 130
336 1he mlnlmum Llck slze for an lndex fuLure conLracL ls
a 010unlLs b
b 003 unlLs
c 023unlLs
d 030unlLs
337 AL a glven polnL ln Llme Lhere are mlnlmum opLlons producLs a
a 42
b 32
c 23
d 30
338 CpLlon conLracLs are speclfled as follows
a uA1LLxl8?MCn1P?LA8CALL/u1AML8lCAn/Lu8CLAnS18lkL a
b uA1L?LA8Lxl8?MCn1PCALL/u1AML8lCAn/Lu8CLAnS18lkL
c ?LA8uA1LLxl8?MCn1PCALL/u1AML8lCAn/Lu8CLAnS18lkL
d uA1LLxl8?MCn1P?LA8CALL/u1Lu8CLAnS18lkL/AML8lCAn
e
339
1he Luropean sLyle call opLlon conLracL on Lhe nlfLy lndex wlLh a sLrlke prlce of 2040
explrlng on Lhe 30Lh Aprll 2008 ls speclfled as
a 2008 Aprll 30 2040 CL
b 30 Aprll 30 2008 2040 CL b
c Aprll 2008 2040 CL
d 30 Aprll 2008 2040 LC
340 Mark to market and Ii nal settlement oI S&P CNX NiIty will be cash settled on .
a 1+3 basls
b 1+2 basls
c 1+l basls c
d 1 basls
e
341 Daily settlement price S&P CNX NiIty will be the oI the Iutures contracts Ior the trading day
a Opening price
b closlng prlce b
c hlgher prlce
d lower prlce
342 The Iinal settlement price S&P CNX NiIty Iutures shall be the closing value oI the on the last trading day
a Index
b sensex
c underlylng lndex c
d fuLure
343 SecurlLy descrlpLor of luLures underlylng lndex Cnx nlfLy
a N FUTTDX NIFTY a
b S FUTTDX NIFTY
c S&P FUTTDX NIFTY
d P FUTTDX NIFTY
344 SecurlLy descrlpLor of luLures underlylng lndex Cnx 8ank
a S FUTIDX BANKNIFTY
b N FUTIDX BANKNIFTY b
c P FUTIDX BANKNIFTY
d S & P FUTIDX BANKNIFTY
343 SecurlLy descrlpLor of luLures underlylng lndex Cnx l1
a S FUTIDX CNXIT
b P FUTIDX CNXIT c
c N FUTIDX CNXIT
d S & P FUTIDX CNXIT
346 Eligibility criteria oI stocks Ior derivative contract are
a
The stock is chosen Irom amongst the top 500 stocks in terms oI average daily
market capitalisation and average daily traded value in the previous six months on a
rolling basis.
b
II an existing security Iails to meet the eligibility criteria Ior three months
consecutively, then no Iresh month contract will be issued on that security. d
c
However, the existing unexpired contracts can be permitted to trade till expiry and
new strikes can also be introduced in the existing contract months.
d All oI the above
347
For unlisted companies coming out with initial public oIIering, iI the net public oIIer
is or more, then the exchange may consider introducing stock options
and stock Iutures on such stocks at the time oI its listing in the cash market.
a 8s730 crores
b 8s300 crores b
c 8s230 crores
d 8s100 crores
348
II an existing security Iails to meet the eligibility criteria Ior three months
consecutively, then no Iresh month contract will be issued on that security. However,
the existing unexpired contracts can be permitted to trade till expiry and
.
a no new sLrlkes can also be lnLroduced ln Lhe exlsLlng conLracL monLhs
b new sLrlkes can also be lnLroduced ln Lhe exlsLlng conLracL monLhs b
c new sLrlkes can also be lnLroduced ln Lhe comlng conLracL monLhs
d none of Lhe above
349
The exchange may consider introducing derivative contracts on an index iI the stocks
contributing toweightage oI the index are individually eligible Ior derivative
trading.
a 70
b 60 c
c 80
d 90
330
The maximum brokerage chargeable by a trading member in relation to trades
eIIected in the contracts admitted to dealing on the F&O segment oI NSE is Iixed at
oI the contract value in case oI index Iutures and stock Iutures.
a 230 a
b 200
c 130
d 1
331
The maximum brokerage chargeable by a trading member in relation to index options
and stock options is.
a 23 of noLlonal value of Lhe conLracL (SLrlke rlce remlum) * CuanLlLy) excluslve of sLaLuLory levles
b 23 of noLlonal value of Lhe conLracL (SLrlke rlce + remlum) * CuanLlLy) excluslve b
c 23 of noLlonal value of Lhe conLracL (SLrlke rlce remlum) * CuanLlLy) lncluslve of sLaLuLory levles
d 23 of noLlonal value of Lhe conLracL (SLrlke rlce + remlum) * CuanLlLy) lncluslve of sLaLuLory levles
332 The trading members contribute to Investor Protection Fund oI F&O segment at the rate oI.
a 8s 10 per crore of Lurnover a
b 8s 20 per crore of Lurnover
c 8s 23per crore of Lurnover
d 8s 30 per crore of Lurnover
333 The best buy order Ior a given Iutures contract is the order to buy the index at the
a Highest price
b Lowest price a
c Average oI the highest and lowest price
d None oI the above
334 The best sell order Ior a given Iutures contract is the order to sell the index at the
a Highest price
b Lowest price
c Average oI the highest and lowest price b
d None oI the above
333 The F&O segment oI NSE provides trading Iacilities Ior the Iollowing derivative instruments:
a Index based Iutures
b Index based options
c Individual stock options d
d All the above
336 At any given time, the F&O segment oI NSE provides trading Iacilities Ior NiIty Iutures contracts.
a Two
b Three
c Nine b
d 1welve
337 The NEAT-F&O trading system supports an
a Order driven market a
b Price driven market
c Demand driven market
d None oI the above
338 On the NSE's NEAT-F&O system, matching oI trades takes place at the
a Active order price
b Passive order price b
c Market price
d None oI the above
339 New options contracts are introduced on the
a First trading day oI the month
b Last Thursday oI the month
c Last Wednesday oI the month d
d On the next trading day Iollowing the expiry oI near mondi contract
360 The unique trading member ID is
a Common Ior all users oI a particular trading member.
b DiIIerent Ior all users oI a particular trading member. a
c All oI the above
d none of Lhe above
361 A Corporate manager can
a PerIorm order and trade related activities
b Receive reports Ior all branches oI the trading member Iirm e
c Can deIine exposure limits Ior the branches oI the Iirm
d Receive reports Ior all dealers oI the Iirm
e All oI the above
362 A dealer can view
a Outstanding orders, previous trades and net position oI the trading member
b Outstanding orders, previous trades and net position entered Ior his branch. c
c Requests entered by him
d None oI the above
363 A Lradlng member lC segmenL Lurnover 200 crore for a monLh WhaL ls Lhe conLrlbuLlon Lo lnvesLor roLecLlon lund ?
a 8s23
b 8s2
c 8s3 b
d 8s1
364 On 26th January, the NiIty index stands at 2250. The value oI a single index Iutures contract is
a Rs225,000
b Rs250,000 a
c Rs450,000
d Rs200,000
363 On 26th March, the NiIty index stands at 4750. The value oI a single index Iutures contract is
a 8s430000
b 8s473000
c 8s300000
d 8s323000 b
366
undertakes clearing and settlement oI all trades executed on the Iutures and options
(F&O) segment oI the NSE.
a nSCCL a
b CSuL
c CS8L
d none of Lhe above
367 nSCCL means
a naLlonal SecurlLles Clearlng CorporaLe LlmlLed
b naLlonal SecurlLles Clearlng Company LlmlLed
c naLlonal Sevlce Clearlng CorporaLlon LlmlLed
d naLlonal SecurlLles Clearlng CorporaLlon LlmlLed d
368
ln Lhe lC segmenL some members called self clearlng members clear and seLLle Lhelr
Lrades execuLed by Lhem ______________________
a only elLher on Lhelr own accounL or on accounL of Lhelr cllenLs a
b only on Lhelr own accounL
c only on accounL of Lhelr cllenLs
d none of Lhe above
369
In the F&O segment, some members,called trading member-cum-clearing member,
clear and settle.
a only Lhelr own Lrades
b only Lrades of oLher Lradlng members(1Ms)
c Lhelr own Lrades as well as Lrades of oLher Lradlng members(1Ms) c
d none of Lhe above
e
l am noL aLLendlng Lhe quesLlon
370
In the F&O segment, some members,called proIessional clearing members (PCM)
who clear and settle trades executed by .
a CMs
b 1Ms b
c uealers
d Managers
371
The members clearing their own trades and trades oI others, and the PCMs are
required to bring in in respect oI every TM whose trades they
undertake to clear and settle.
a addlLlonal securlLy charges
b addlLlonal securlLy deposlLs b
c addlLlonal margln
d addlLlonal LransacLlon charges
372 The Clearing and Settlement process comprises oI the Iollowing main activities
1 Clearing
2.Settlement
3.Risk Management
a 1 & 2
b 1 &3
c 2 & 3 d
d All oI the above
373
The open positions oI CMs are arrived at byoI all the TMs and all
custodial participants clearing through him, in contracts in which they have traded.
a aggregaLlng Lhe open poslLlons
b aggregaLlng Lhe closlng poslLlons
c welghLed average of Lhe open poslLlons
d welghLed average of Lhe closlng poslLlons
374 Proprietary positions are calculated on Ior each contract.
a (buy sell) a
b (buy + sell)
c (buy *sell)
d (buy / sell)
373
Clients' positions are arrived at by summing together net positions oI each
individual client.
a (buy sell)
b (buy + sell) a
c (buy *sell)
d (buy / sell)
376 A TM's open position is the
a proprleLary open poslLlon+ cllenL open long poslLlon cllenL open shorL poslLlon
b proprleLary open poslLloncllenL open long poslLlon + cllenL open shorL poslLlon
c sum of proprleLary open poslLlon cllenL open long poslLlon and cllenL open shorL poslLlon c
d proprleLary open poslLlon* (cllenL open long poslLlon + cllenL open shorL poslLlon)
e none of Lhe above
377
All Iutures contracts Ior each member are marked-to-market(MTM) to the
oI the relevant Iutures contract at the end oI each day.
a monLhly seLLlemenL prlce
b weekly seLLlemenL prlce c
c dally seLLlemenL prlce
d yearly seLLlemenL prlce
e none of Lhe above
378 The proIits/losses on Iutures contracts are computed as the diIIerence between
a The trade price and the day's settlement price Ior contracts executed during the day but not squared up.
b The previous day's settlement price and the current day's settlement price Ior brought Iorward contracts.
c The buy price and the sell price Ior contracts executed during the day and squared up.
d All of Lhe above
e none of Lhe above
379 Whlch of Lhe followlng ls Lrue
a
CMs are partially responsible to collect and settle the daily MTM proIits/losses
incurred by the TMs and their clients clearing and settling through them.
b
CMs are responsible to collect and settle the daily MTM proIits/losses incurred by the
TMs and their clients clearing and settling through them. b
c
CMs are not responsible to collect and settle the daily MTM proIits/losses incurred
by the TMs and their clients clearing and settling through them.
d All of Lhe above
e none of Lhe above
a TMs are responsible to collect/pay losses/ proIits Irom/to their clients by the next day a
b TMs are not responsible to collect/pay losses/ proIits Irom/to their clients by the next day
c TMs are partially responsible to collect/pay losses/ proIits Irom/to their clients by the next day
d All of Lhe above
e none of Lhe above
381 The pay-in and pay-out oI the mark-to-market settlement are eIIected on the day Iollowing the trade day
a 18uL a
b lALSL
382
In case a Iutures contract is not traded on a day, or not traded during the last halI
hour, a is using Ior computing the MTM settlement
a LheoreLlcal seLLlemenL prlce
b LasL Lraded prlce
c LasL monLh Lraded prlce a
d All of Lhe above
e none of Lhe above
383 Theoretical Iutures price equation is
a F SerT
b F SerT b
c FSrTe
d F SrerT
e none of Lhe above
384
Final settlement loss/proIit amount Iuture contract is debited/ credited to the relevant
CM's clearing bank account on the ..
a day afLer openlng day of Lhe conLracL
b monLh followlng explry day of Lhe conLracL c
c day followlng explry day of Lhe conLracL
d day followlng afLer Lhe day of Lhe conLracL
e none of Lhe above
a Daily settlement price on a trading day is the closing price oI the respective Iutures contracts on such day.
b
The closing price Ior a Iutures contract is currently calculated as the last halI an hour
weighted average price oI the contract in the F&O Segment oI NSE.
c
Final settlement price oI Iuture contract is the closing price oI the relevant underlying
index/security in the capital market segment oI NSE, on the last trading day oI the
contract. e
d All of Lhe above
e none of Lhe above
386
The closing price Ior a Iutures contract is currently calculated as the oI
the contract in the F&O Segment oI NSE.
a the last one an hour weighted average price
b the last halI an hour weighted average price b
c the last two hour weighted average price
d the last ten minits weighted average price
e none of Lhe above
387 Options contracts have the Iollowing types oI settlements,
a daily premium settlement
b exercise settlement
c interim exercise settlement d
d All oI the above
e none of Lhe above
a Buyer oI an option is obligated to pay the premium towards the options purchased by him.
b the seller oI an option is entitled to receive the premium Ior the option sold by him.
c Interim exercise settlement takes place only Ior option contracts on securities.
d All oI the above e
e none of Lhe above
389 The exercise settlement value Ior each unit oI the call options is,
a Closlng prlce of Lhe securlLy on Lhe day of exerclse SLrlke prlce a
b Closlng prlce of Lhe securlLy on Lhe day of exerclse + SLrlke prlce
c Closlng prlce of Lhe securlLy on Lhe day of exerclse * SLrlke prlce
d none of Lhe above
390 The exercise settlement value Ior each unit oI the put options is,
a Strike price Closing price oI the security on the day oI exercise
b Strike price Closing price oI the security on the day oI exercise b
c Strike price / Closing price oI the security on the day oI exercise
d Strike price * Closing price oI the security on the day oI exercise
e None oI the above
391 The exercise settlement by NSCCL would ordinarily take place on Iollowing the day oI exercise.
a 3rd day
b 2nd day a
c 1sL day
d 4Lh day
e none of Lhe above
392
. FIIs/sub-accounts oI FIIs which have been allotted a by NSCCL are
only permitted to trade on the F&O segment.
a unlque 1Mcode
b unlque CMcode c
c unlque C code
d unlque user code
e none of Lhe above
393
What are the salient Ieatures oI risk containment mechanism Ior the F&O segment oI
NSCCL
a
The requirements Ior membership in terms oI capital adequacy (net worth, security
deposits) are quite stringent.
b
NSCCL charges an upIront initial margin Ior all the open positions oI a CM. It speciIi
es the initial margin requirements Ior each Iutures/options contract on a daily basis.
c
The open positions oI the members are marked to market based on contract
settlement price Ior each contract. The diIIerence is settled in cash on a Tl basis. d
d All oI the above
e none oI the above
394
What are the salient Ieatures oI risk containment mechanism Ior the F&O segment oI
NSCCL
a
CMs are provided a trading terminal Ior the purpose oI monitoring the open positions
oI all the TMs clearing and settling through him. A CM may set exposure limits Ior a
TM clearing and settling through him. NSCCL assists the CM to monitor the intra-
day exposure limits set up by a CM and whenever a TM exceed the limits, it stops
that particular TM Irom Iurther trading
b
A member is alerted oI his position to enable him to adjust his exposure or bring in
additional capital. Position violations result in withdrawal oI trading Iacility Ior all
TMs oI a CM in case oI a violation by the CM. d
c
A separate settlement guarantee Iund Ior this segment has been created out oI the
capital oI members.
d All oI the above
e none oI the above
393 The most critical component oI risk containment mechanism Ior F&O segment is
a margining system
b on-line position monitoring. c
c All oI the above
d none oI the above
396 The actual position monitoring and margining F&O segment oI nse is carried out on-line through
a C88S
b PRISM b
c nLA1
d All oI the above
e none oI the above
397
PRISM uses system Ior the purpose oI computation oI on-line margins, based
on the parameters deIined by SEBI
a C88S
b SAn(r) b
c nLA1
d All oI the above
e none oI the above
398 SAn(r) means
a (SLandard orLfollo AsseL of 8lsk)
b (SLandard parameLer Analysls of 8lsk)
c (SLandard orLfollo Analysls of 8lsk) c
d (SLandard orLfollo Analysls of 8aLe)
e none of Lhe above
399 The Iollowing Iactors aIIect the value oI an option
a Underlying market price
b Strike price f
c Volatility (variability) oI underlying instrument
d Time to expiration
e Interest rate
f All oI the above
400
The objective oI NSCCL-SPAN is to identiIy overall risk in a portIolio oI all Iutures
.Its over-riding objective is to determine the largest loss that a portIolio might
reasonably be expected to suIIer Irom one day to the next day based on
methodology.
a 100 va8
b 99 va8 b
c 98 va8
d 97 va8
e none of Lhe above
401
Risk arrays, and other necessary data inputs Ior margin calculation are provided to
members daily in a Iile called the .
a SAn parameLer flle
b SAn rlsk parameLer flle b
c SAn raLe parameLer flle
d SAn reLurn parameLer flle
e none of Lhe above
402 The margining system Ior F&O segment oI nse are
a Initial margin
b remlum margln e
c Assignment margin Ior options on securities
d Client margins
e All oI the above
403
Margin in the F&O segment is computed by NSCCL upto client level Ior open
positions oI CMs/TMs.These are required to be paid up-Iront on basis at
individual client level Ior client positions and on basis Ior proprietary
positions.
a neL gross b
b gross neL
c gross average
d average neL
e none of Lhe above
404 Premium margin is an addition to initial margin, premium margin is charged at .
a 8roker level
b cllenL level b
c 1M level
d CM level
e none of Lhe above
403
Any adjustment Ior corporate actions is carried out on the last day on which a
security is traded on a cum basis in the underlying equities market, aIter the close oI
trading hours. such that the basic premise oI adjustment laid down is
a Strike price
b Position
c Market lot/multiplier
d All of Lhe above d
e None oI the above
406
Who ls Lhe chalrman of commlLLee Lo develop Lhe approprlaLe regulaLory framework for
derlvaLlves Lradlng ln lndla
a urA C CupLa
b ur8CCupLa
c urLC CupLa
d urLwCupLa c
e none of Lhe above
407
_____________SL8l accepLed Lhe recommendaLlons of Lhe commlLLee and approved Lhe
phased lnLroducLlon of derlvaLlves Lradlng ln lndla beglnnlng wlLh sLock lndex fuLures
a Cn May 11 1998
b Cn May 18 1998 a
c Cn [une 11 1998
d Cn [une 18 1998
e none of Lhe above
408 lor sLarLlng derlvaLlves ln a exchange should have mlnlmum ______members
a 200
b 100 c
c 30
d 23
e none of Lhe above
409
1he members of an exlsLlng segmenL of Lhe exchange would noL auLomaLlcally become Lhe
members of derlvaLlve segmenL
a 18uL a
b lALSL
410 1he mlnlmum neLworLh for
clearlng members of Lhe derlvaLlves clearlng corporaLlon/house shall be __________
a 8s300 Lakh
b 8s300 Lakh b
c 8s230 Lakh
d 8s200 Lakh
e none of Lhe above
411 1he mlnlmum neLworLh for of Lhe member shall be compuLed as follows
a CaplLal + lree reserves nonallowable asseLs vlz
b CaplLal lree reserves + nonallowable asseLs vlz a
c CaplLal + lree reserves+ nonallowable asseLs vlz
d none of Lhe above
412 1he mlnlmum conLracL value derlvaLlves shall noL be less Lhan ________
a 8s3 Lakh
b 8s2 Lakh
c 8s1Lakh b
d 8s03 Lakh
e none of Lhe above
413 collaLeral deposlLs Lo members of Lhe lC segmenL ls
a cash componenL
b noncash componenL
c all of Lhe above c
d none of Lhe above
414 Cash componenL of collaLeral deposlLs Lo members of Lhe lC segmenL means
a cash
b bank guaranLee
c flxed deposlL recelpLs s
d 1bllls and daLed governmenL securlLle
e All of Lhe above
413
noncash componenL of collaLeral deposlLs Lo members of Lhe lC segmenL mean all
oLher forms of collaLeral deposlLs llke ____________
a deposlL of approved demaL securlLles
b flxed deposlL recelpLs s a
c 1bllls and daLed governmenL securlLle
d none of Lhe above
e
416
LllglblllLy crlLerla CM and lC segmenL for membershlp on lC segmenL should have Lhe
neLworLh of
a 100
b 200 a
c 273
d 300
e none of Lhev above
417
LllglblllLy crlLerla CM WuM and lC segmenL for membershlp on lC segmenL should
have Lhe neLworLh of
a 100
b 200
c 273 b
d 300
418 Annual subscrlpLlon of CM and lC segmenL for membershlp on lC segmenL ls
a 1
b 2 a
c 3
d 4
419 Annual subscrlpLlon of CM WuM and lC segmenL for membershlp on lC segmenL ls
a 1
b 2 b
c 3
d 4
420
neLworLh requlremenLs for professlonal clearlng membershlp on lC segmenL ls
a 8s300 Lakh
b 8s300 Lakh b
c 8s230 Lakh
d 8s200 Lakh
e none of Lhe above
421 neLworLh requlremenLs for professlonal clearlng membershlp on CM lC segmenL ls
a 8s300 Lakh
b 8s300 Lakh
c 8s230 Lakh
d 8s200 Lakh b
e none of Lhe above
422 Annual subscrlpLlon for professlonal clearlng membershlp on lC segmenL ls
a 1
b 2
c 3
d nll d
423 Annual subscrlpLlon for professlonal clearlng membershlp onCM lC segmenL ls
a 1
b 2
c 23 c
d 3
424 A Lradlng member can also be a clearlng member by meeLlng addlLlonal requlremenLs
a 18uL a
b lALSL
423
1he approved user can access Lhe nLA1 sysLem Lhrough a password and cannoLchange such
password from Llme Lo Llme
a 18uL
b lALSL b
426
Approved users on Lhe lC segmenL have Lo pass a cerLlflcaLlon program whlch has been
approved by SL8l
a 18uL a
b lALSL
427 1radlng member poslLlon llmlLs ln equlLy lndex fuLures conLracLs ls
a
1he Lradlng member poslLlon llmlLs ln equlLy lndex fuLures conLracLs ls hlgher of
8s300crore or 13 of Lhe LoLal open lnLeresL ln Lhe markeL ln equlLy lndex fuLures
conLracLs
b
1he Lradlng member poslLlon llmlLs ln equlLy lndex fuLures conLracLs ls hlgher of 8s230
crore or 20 of Lhe LoLal open lnLeresL ln Lhe markeL ln equlLy lndex fuLures conLracLs
c
crore or 13 of Lhe LoLal open lnLeresL ln Lhe markeL ln equlLy lndex fuLures conLracLs c
d
crore or 20 of Lhe LoLal open lnLeresL ln Lhe markeL ln equlLy lndex fuLures conLracLs
428 1radlng member poslLlon llmlLs ln equlLy lndex opLlon conLracLs ls
a
1he Lradlng member poslLlon llmlLs ln equlLy lndex opLlon conLracLs ls hlgher of 8s300 crore
or 13 of Lhe LoLal open lnLeresL ln Lhe markeL ln equlLy lndex opLlon conLracLs
b
1he Lradlng member poslLlon llmlLs ln equlLy lndex opLlon conLracLs ls hlgher of 8s230
crore or 20 of Lhe LoLal open lnLeresL ln Lhe markeL ln equlLy lndex opLlon conLracLs
c
1he Lradlng member poslLlon llmlLs ln equlLy lndex opLlon conLracLs ls hlgher of 8s300
crore or 13 of Lhe LoLal open lnLeresL ln Lhe markeL ln equlLy lndex opLlon conLracLs c
d
1he Lradlng member poslLlon llmlLs ln equlLy lndex opLlon conLracLs ls hlgher of 8s300crore
or20 of Lhe LoLal open lnLeresL ln Lhe markeL ln equlLy lndex opLlon conLracLs
429
1he gross open poslLlon for each cllenL across all Lhe derlvaLlve conLracLs on an underlylng
should noL exceed 1 of Lhe free floaL markeL caplLallzaLlon or
a
3 of Lhe open lnLeresL ln all derlvaLlve conLracLs ln Lhe same underlylng sLock whlchever
ls hlgher
b
ls lower a
c
10 of Lhe open lnLeresL ln all derlvaLlve conLracLs ln Lhe same underlylng sLockwhlchever
ls hlgher
d
ls lower
430
1he markeL wlde llmlL of open poslLlon (ln Lerms of Lhe number of underlylng plus sLock) on
fuLures and opLlon conLracLs on a parLlcular underlylng sLock should be
a 13 of Lhe number of shares held by nonpromoLers ln Lhe relevanL underlylng securlLy
b 30 of Lhe number of shares held by nonpromoLers ln Lhe relevanL underlylng securlLy c
c
20 of Lhe number of shares held by nonpromoLers ln Lhe relevanL underlylng securlLy
d none of Lhe above
431 1he enforcemenL of dle markeL wlde llmlLs ls done ln dle followlng manner
a
AL end of Lhe day Lhe exchange LesLs wheLher Lhe markeL wlde open lnLeresL for any scrlp
exceeds 93 of Lhe markeL wlde poslLlon llmlL for LhaL scrlp ln case lL does so Lhe
exchange Lakes noLe of open poslLlon of all cllenL/1Ms as aL end of LhaL day for LhaL scrlp
and from nexL day onwards Lhey can Lrade only Lo decrease Lhelr poslLlons Lhrough
offseLLlng poslLlons
b
AL Lhe end of each day durlng whlch Lhe ban on fresh poslLlons ls ln force for any scrlp Lhe
exchange LesLs wheLher any member or cllenL has lncreased hls exlsLlng poslLlons or has
creaLed a new poslLlon ln LhaL scrlp
c
1he normal Lradlng ln Lhe scrlp ls resumed afLer Lhe open ouLsLandlng poslLlon comes down
Lo 80 or below of Lhe markeL wlde poslLlon llmlL lurLher Lhe exchange also checks on a
monLhly basls wheLher a sLock has remalned sub[ecL Lo Lhe ban on new poslLlon for a
slgnlfl canL parL of Lhe monLh conslsLenLly for Lhree monLhs d
d all of Lheabove
e none of Lhe above
432 1he l1l poslLlon llmlL ln all lndex opLlons conLracLs and lndex fuLures conLracLs
a
ls 8s 300 crore or 13 of Lhe LoLal open lnLeresL of Lhe markeL ln lndex opLlons whlchever
ls hlgher per exchange
b
ls 8s300 crore or 13 of Lhe LoLal open lnLeresL of Lhe markeL ln lndex opLlons whlchever
ls hlgher per exchange b
c
ls 8s 230 crore or 13of Lhe LoLal open lnLeresL of Lhe markeL ln lndex opLlons whlchever
d
ls 8s300 crore or 20 of Lhe LoLal open lnLeresL of Lhe markeL ln lndex opLlons whlchever
e
none of Lhev above
433 llls can Lake exposure ln equlLy lndex derlvaLlves sub[ecL Lo Lhe followlng llmlLs
a can be exceedlng Lhe l1ls holdlng of sLocks
b noL exceedlng Lhe l1ls holdlng of sLocks b
c All of Lhebabove
d none of Lhe above
434 llls can Lake exposure llmlL ln long poslLlons ln lndex derlvaLlves upLo Lhe llls holdlng of
a cash
b governmenL +securlLles
c 1bllls and slmllar lnsLrumenLs d
d All of Lhe above
e noneof Lhe above
433
SecurlLles 1ransacLlon 1ax on all derlvaLlve LransacLlons enLered lnLo ln a recognlzed sLock
exchange ls
a 00133 of Lhe value of Laxable securlLles LransacLlon
b 0017 of Lhe value of Laxable securlLles LransacLlon
c 00133 or 0017 whlch ever hlgher of Lhe value of Laxable securlLles LransacLlon
d 00188 of Lhe value of Laxable securlLles LransacLlon
e
436
Mr A sells a fuLures conLracL of M/s x?Z LLd (LoL Slze 1000) explrlng on 29Sep2003 for
8s 300 1he spoL prlce of Lhe share ls 8s 290 1he securlLles LransacLlon Lax
a 30
b 31 b
c 40
d 41
e none of Lhe above
437
Mr A sells an opLlons conLracL of M/s x?Z LLd (LoL Slze 1000) explrlng on 29Sep2003 for
8s 10 1he sLrlke prlce of Lhe conLracL ls 8s 300 1he spoL prlce of Lhe share ls 8s 290 1he
securlLles LransacLlon Lax ls
a 32
b 31
c 40 a
d 41
e none of Lhe above
a
1he value of Laxable securlLles LransacLlon relaLlng Lo opLlon ln securlLles ls Lhe aggregaLe of
Lhe sLrlke prlce and Lhe opLlon premlum of such opLlon ln securlLles c
b
1he value of Laxable securlLles LransacLlon relaLlng Lo fuLures ls Lhe prlce aL whlch such
fuLures are Lraded
c all of Lhe above
d none of Lhe above
439 Weekly opLlons Lradlng commenced on nSL ln _______
(a) nSL does noL Lrade ln Weekly opLlons
(b) 02!un2003
(c) 04!ul2003
(d) 04!un2003
440
A sLock ls currenLly selllng aL 8s 70 1he puL opLlon Lo sell Lhe sLock aL 8s 73 cosLs 8s 12
WhaL ls Lhe Llme value of Lhe opLlon?
(a) 8s 7
(b) 8s 3
(c) 8s 2
(d) 8s 4
441 ______ ls a form of baskeL opLlons
(a) LqulLy lndex opLlons
(b) LqulLy lndex fuLures
(c) SwapLlons
(d) WarranLs a
442
An opLlon Lo buy or sell a swap LhaL becomes operaLlve aL Lhe explry of Lhe opLlon ls called
a _______
(a) swapLlon
(b) fuLures
(c) baskeL opLlon
(d) warranL
443 uerlvaLlves can be used for whlch of Lhe followlng?
(a) Pedglng
(b) ArblLrage
(c) SpeculaLlng
444
1o be ellglble for opLlons Lradlng Lhe markeL wlde poslLlon llmlL ln Lhe sLock should noL be
less Lhan 8s ___________
(a) 230 crore
(b) 100 crore
(c) 30 crore
(d) 300 crore
443
ln case a luLure ConLracL ls noL Lraded ln a day whlch of Lhe followlng prlces ls reckoned for
dally mark Lo markeL seLLlemenL?
(a) Closlng prlce of Lhe lasL Lraded day
(b) 1heoreLlcal prlce
(c) Closlng prlce of Lhe fuLures conLracL
(d) Closlng prlce of Lhe underlylng b
446
?ou are Lhe owner of a 2 mllllon porLfollo wlLh a beLa 10 ?ou would llke Lo lnsure your
porLfollo agalnsL a fall ln Lhe lndex of magnlLude hlgher Lhan 13 SpoL nlfLy sLands aL
2200 uL opLlons on Lhe nlfLy are avallable aL Lhree sLrlke prlces Whlch sLrlke wlll glve you
Lhe lnsurance you wanL?
(a) 1870
(b) 1840
(c) 1970
447
1he maxlmum brokerage chargeable by a Lradlng member ln relaLlon Lo Lrades effecLed ln
Lhe conLracLs admlLLed Lo deallng on Lhe lC segmenL of nSLlL ls flxed aL ______ of Lhe
conLracL value excluslve of sLaLuLory levles
(a) 130
(b) 230
(c) 073
(d) 3
448
Ms SheLLy has sold 600 calls on u8 8Luu?S LA8 aL a sLrlke prlce of 8s992 for a premlum
of 8s23 per call on Aprll 1 2002 1he closlng prlce of equlLy shares of u8 8Luu?S LA8 ls
8s 994 on LhaL day lf Lhe call opLlon ls asslgned agalnsL her on LhaL day whaL ls her neL
obllgaLlon on Aprll 01 2002?
(b) ayln of 8s18300
(c) ayln of 8s13800
449 ually Mark Lo MarkeL seLLlemenL of fuLures Lakes place on ________ basls
(a) 1+0
(b) 1+3
(c) 1+3
(d) 1+1
430 WhaL ls dlsplayed ln Lhe nLA1 1radlng SysLem 1lcker Screen?
(a) 1he elecLronlc dlsplay LhaL conLlnuously shows only Lhe sLock symbol volume and prlce
aL whlch each successlve Lrade occurs
(b) 1he elecLronlc dlsplay LhaL conLlnuously shows only Lhe prlce aL whlch each successlve
Lrade occurs

(c) 1he elecLronlc dlsplay LhaL conLlnuously shows only Lhe sLock symbol and volume aL
each successlve Lrade occurs
431
Lach user of Lhe Lradlng member ln lC segmenL of nSLlL ls asslgned a unlque _________
lu
(a) user
(b) Lradlng member
(c) branch
(d) exchange
432
_______ order allows Lhe user Lo execuLe a conLracL as soon as lL ls enLered lnLo Lhe
sysLem falllng whlch Lhe order ls lmmedlaLely cancelled from Lhe sysLem
(a) C1u
(b) lCC
(c) LlmlL
(d) C1C
433 Whlch of Lhe followlng sLaLemenL ls Lrue?
(a) 8askeL Lradlng ls lllegal ln lndla
(b) nSL does noL allow baskeL Lradlng ln lLs lC SegmenL
(c) 8askeL Lradlng has been dlsconLlnued ln Lhe lC SegmenL
(d) lC SegmenL has a 8askeL Lradlng faclllLy d
434
lmmedlaLe or cancel ls an order whlch wlll auLomaLlcally __________ ln lC segmenL of
nSLlL
(a) be maLched because lL belng a preferenLlal order
(b) be cancelled lf lL ls noL maLched lmmedlaLely and ln lLs enLlreLy
(c) geL sLored ln Lhe sysLem for maLchlng lf noL execuLed lmmedlaLely
(d) cancel Lhe unmaLched porLlon of Lhe order quanLlLy d
433 luLures Lradlng flrsL emerged ln Lhe exchanges locaLed ln ________
(a) London
(b) u
(c) Chlcago
(d) annual requlremenLs of copper
436 A markeL lndex ls very lmporLanL for lLs use ___________
(a) as a baromeLer for markeL behavlor
(b) as a benchmark of porLfollo performance
(c) ln porLfollo managemenL
437 An auLhorlsed person ln Lhe luLures CpLlons segmenL ls ___________
(a) any person who ls acLlng ln any capaclLy on behalf of Lhe Lradlng member or a
parLlclpanL for any acLlvlLy relaLlng Lo Lhe Lrades done and execuLed
(b) a person auLhorlsed by Lhe exchange as an approved user of a Lradlng member
(c) an approved user of a parLlclpanL
438
nSCCLs onllne poslLlon monlLorlng sysLem monlLors open poslLlon of _____________on a
real Llme basls
(a) clearlng member only
(b) Lradlng member only
(c) clearlng member and Lradlng member
(d) dealer only
439 1he opLlon prlce ls Lhe _______
(a) prlce pald by Lhe buyer of Lhe opLlon Lo Lhe seller of Lhe opLlon
(b) prlce aL whlch an opLlon Lrades ln Lhe markeL
(c) sum of lnLrlnslc value plus Llme value of an opLlon
(d) All of Lhe above d
460 Whlch of Lhe followlng conLracLs are compulsorlly seLLled on exerclse daLe?
(a) ln Lhe money opLlon conLracLs
(b) ueep aL Lhe money opLlon conLracLs
(c) AL Lhe money opLlon conLracLs
(d) CuL of Lhe money opLlon conLracLs a
470 Whlch of Lhe followlng are derlvaLlves?
(a) CpLlons
(b) luLures
(c) lorward 8aLe AgreemenLs
471 lnlLlal margln ls collecLed Lo __________
(a) make good dally losses
(b) squareoff a poslLlon on Lhe explry of Lhe conLracL
(c) safeguard agalnsL poLenLlal losses on ouLsLandlng poslLlons c
(d) provlde for losses LhaL have already occurred
472 1ransacLlon Lax ls payable by Lhe __________ of Lhe derlvaLlve lnsLrumenL
(a) buyer
(b) deslgner
(c) seller
(d) orlglnaLor c
473 1he lnLrlnslc value of a call opLlon ls Lhe amounL Lhe opLlon ls ________
(a) lnLhemoney
(b) aLLhemoney
(c) ouLofLhemoney
(d) aboveLhemoney a
474 1he beLa of nlfLy ls _______
(a) 17
(b) 1
(c) 0
(d) ()1 b
473 A sLock broker ls allowed Lo buy sell or deal ln securlLles __________
(a) only on belng admlLLed as a member of a sLock exchange
(b) on submlsslon of documenL wlLh SL8l for reglsLraLlon
(c) on submlsslon of documenL wlLh sLock exchange for admlsslon
(d) only on havlng a cerLlflcaLe of reglsLraLlon granLed by SL8l d
476
1he markeL lmpacL cosL on a Lrade of 8s 3 mllllon of Lhe S Cnx nlfLy works ouL Lo be
abouL 003 1hls means LhaL lf S Cnx nlfLy ls aL 2000 a sell order of LhaL value wlll go
Lhrough aL a prlce of 8s _______
(a) 1999
(b) 1993
(c) 199930
(d) 199330 a
477 L1ls can be ________
(a) boughL and sold on an exchange llke shares
(b) boughL on an exchange buL sold only dlrecLly Lo Lhe muLual fund
(c) boughL and sold only dlrecLly wlLh a muLual fund
(d) none of Lhe above a
478
Ms SheLLy has sold 300 calls on Wl8C aL a sLrlke prlce of 8s1303 for a premlum of 8s28
per call on Aprll 1 2002 1he closlng prlce of equlLy shares of Wl8C ls 8s 1333 on LhaL
day lf Lhe call opLlon ls asslgned agalnsL her on LhaL day whaL ls her neL obllgaLlon on Aprll
01 2002?
(a) ayouL of 8s 21600
(b) ayln of 8s13000
(d) ayln of 8s6600 d
479
va8 meLhodology seeks Lo measure Lhe amounL of value LhaL a porLfollo may sLand Lo lose
wlLhln a cerLaln horlzon Llme perlod due Lo poLenLlal changes ln ______________
(a) underlylng exposures
(b) underlylng asseL spoL prlce
(c) underlylng sLock volaLlllLy
(d) underlylng lndex volaLlllLy
480
Mr A sells a fuLures conLracL of M/s x?Z LLd (LoL Slze 1000) explrlng on 29/Sep/2003 for
8s 300 1he spoL prlce of Lhe share ls 8s 290 1he securlLles LransacLlon Lax Lhereon would
be ________
(a) 8s 10
(b) 8s 80
(c) 8s 20
(d) 8s 31 d
481
An lndex puL opLlon aL a sLrlke of 8s 2176 ls selllng aL a premlum of 8s 18 AL whaL lndex
level wlll lL break even for Lhe buyer of Lhe opLlon?
(a) 8s 2194
(b) 8s 2196
(c) 8s 2138 c
(d) 8s 2162
(a) Sendlng Lhe perlodlcal sLaLemenL of accounLs Lo cllenLs
(b) MalnLalnlng unlque cllenL codes
(c) Lnsurlng Llmely payln and payouL of funds
(d) All of Lhe above c
483
Whlch of Lhe followlng should be dlsclosed separaLely for long and shorL poslLlons ln
respecL of each serles of equlLy lndex fuLures as of Lhe balance sheeL daLe?
(a) number of equlLy lndex fuLures conLracLs havlng open poslLlon
(b) number of unlLs of equlLy lndex fuLures perLalnlng Lo Lhe conLracLs
(c) 1he dally seLLlemenL prlce
484 luLures dlffers from forwards ln Lhe sense LhaL ________
(a) seLLlemenL of conLracL Lakes place ln Lhe fuLure
(b) boLh parLles are bound Lo glve/Lake dellvery
(c) poslLlons are markedLomarkeL everyday c
(d) conLracLs are cusLom deslgned
483
?ou have boughL a porLfollo of securlLles on Lhe exchange 1o ellmlnaLe Lhe rlsk arlslng ouL
of markeL you should _____
(c) sell sLock fuLures
(d) sell lndex fuLures d
486
1he clearlng member/Lradlng member ls requlred Lo dlsclose Lo Lhe clearlng corporaLlon
deLalls of any person(s) acLlng ln concerL who LogeLher own _____ or more of Lhe open
lnLeresL of all fuLures and opLlons conLracLs on a parLlcular underlylng lndex on Lhe sLock
exchange
(a) 12
(b) 13
(c) 20
(d) 23
487
1he spoL prlce of 1lSCC ls 8s 2030 and Lhe cosL of flnanclng ls 10 WhaL ls Lhe falr prlce of
a one monLh fuLures conLracL on 1lSCC?
(a) 208280
(b) 206630
(c) 208313
(d) 209940 b
488
Cyrus ls shorL 600 Wl8C !uly uLs aL sLrlke 8s 1320 for a premlum of 8s 33 each on !uly
22 2002 Cn !uly 23 2002 (Lhe explraLlon day of Lhe conLracL) Lhe spoL prlce of Wl8C
closes aL 8s1333 whlle Lhe !uly fuLures on Wl8C close aL 1333 uoes Cyrus have an
obllgaLlon Lo Lhe Clearlng CorporaLlon on hls poslLlons and how much lf any?
(d) ?es 8s19800 payln b
489
Whlch of Lhe followlng ls requlred for personnel worklng ln Lhe lndusLry ln order Lo
dlspense quallLy lnLermedlaLlon?
(a) 1o follow cerLaln code of conducL
(b) 1o possess requlslLe skllls and knowledge
(c) 1o have a proper undersLandlng of Lhe buslness and skllls Lo help lL remaln compeLlLlve
490
!une fuLures conLracL on Wl8C closed aL 8s 1133 on May 20 and aL 8s 1130 on May 21
2002 8a[u has a shorL poslLlon of 4000 ln Lhe !une fuLures conLracL Cn May 21 2002 he
sells 3000 unlLs of 10!une2002 explrlng uL CpLlons on Wl8C aL sLrlke prlce of 8s1143
for a premlum of 8s28 per unlL WhaL ls hls neL obllgaLlon Lo / from Lhe Clearlng
CorporaLlon for May 21 2002?
(a) ayln of 8s32000
(b) ayln of 8s72000
(c) ayouL of 8s96000 c
491
Assume LhaL Lhe base value of a markeL caplLallzaLlon welghLed lndex were 1000 and Lhe
base markeL caplLallsaLlon were 8s33000 crore lf Lhe currenL markeL caplLallsaLlon ls
8s77000 crore Lhe lndex ls aL 8s ____
(a) 2110
(b) 2330
(c) 2230
(d) 2200 d
492 Around 60 of Lhe Lradlng volume on Lhe Amerlcan SLock Lxchange ls from __________
(a) lndex lunds
(b) lndex luLures
(c) L1ls
(d) lndex CpLlons
493 SwapLlons are
(a) CpLlons Lo buy or sell a swap
(b) CpLlons Lo roll over a swap
(c) CpLlons on fuLures
494
lf Lhe annual rlsk free raLe ls 10 Lhen Lhe `r used ln Lhe 8lack Scholes formula should be
______
(a) 0093
(b) 01398
(c) 11
493
AL Lhe balance sheeL daLe Lhe balance ln Lhe `lnlLlal margln equlLy lndex fuLures accounL
should be shown separaLely under Lhe head ________
(a) prepald expenses
(b) currenL asseLs
(c) ouLsLandlng balance
(d) currenL llablllLles
496 Pedglng wlLh lndex fuLures means ___________
(a) long securlLy shorL securlLy
(b) long lndex fuLures shorL lndex fuLures
(c) long securlLy shorL lndex fuLures
(d) long securlLy long lndex fuLures c
497 Whlch of Lhe followlng ls noL Lhe duLy of Lhe Lradlng member?
(a) lllllng of know ?our CllenL form
(b) AsslsLlng Lhe cllenL Lo arrange for marglns
(d) LxecuLlon of CllenL 8roker AgreemenL
498 Cn explry Lhe seLLlemenL prlce of an lndex fuLures conLracL ls _______
(a) openlng prlce of fuLures conLracL
(b) closlng lndex value
(c) closlng prlce of fuLures conLracL
(d) openlng lndex value b
(a) allows one Lo enLer comblnaLlon Lrades
(b) does noL allow comblnaLlon Lrades
491
SanLosh ls bearlsh abouL A8C LLdand sells Len onemonLh A8C LLdfuLures conLracLs aL
8s296000 Cn Lhe lasL 1hursday of Lhe monLh A8C LLdcloses aL 8s310 Pe makes a
_________ (assume one loL 100)
(b) loss of 8s 7000
492 A sLock broker applles for reglsLraLlon Lo SL8l _________
(a) Lhrough sLock exchange(s) of whlch he or she ls admlLLed as a member
(b) dlrecLly
(c) Lhrough assoclaLlon of members
(d) Lhrough MlnlsLry of llnance
493 nClM sLands for ___________
(a) naLlonal CerLlflcaLlon ln llnanclal ManagemenL
(b) naLlonal CerLlflcaLlon ln llnanclal MarkeLs
(c) nSLs CerLlflcaLlon ln llnanclal MarkeLs
(d) nSLs CerLlflcaLlon ln llnanclal ManagemenL c
494 ln lndlan conLexL derlvaLlve lncludes
A) A securlLy derlved from a debL lnsLrumenL share loan wheLher secured or unsecured
rlsk lnsLrumenL or conLracL for dlfferences or any oLher form of securlLy
8) A conLracL whlch derlves lLs value from Lhe prlces or lndex of prlces of underlylng
securlLles
(a) A
(b) 8
(c) 8oLh of Lhe above
(d) none of Lhe above c
493 1he fuLures prlce ls ________
(a) Lhe prlce of a conLracL ln Lhe fuLure
(b) spoL prlce plus cosL of carry
(d) Lhe prlce seL by Lhe exchange c
496 lndex opLlons on Lhe S Cnx nlfLy can be exerclsed ___________
(b) upon maLurlLy
(d) on a daLe prespeclfled by Lhe Lradlng member b
497 A Lradlng member allowed Lo clear hls own Lrades only ls known as _________
(d) self clearlng member d
498
1he lnlLlal margln amounL ls large enough Lo cover a oneday loss LhaL can be encounLered
on ______ of Lhe days
(a) 93
(b) 30
(c) 99
(d) 90 c

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1 Swaps can be regarded as porLfollos of ________

(a) luLure ConLracLs

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