Q1.
The settlement price for determining daily mark-to-market margins for a futures transaction is:
Q2.
Using derivative for speculative purposes is risky because:
Q3.
The primary objective in a derivative contract is to transfer the risk from one party to another.
Q4.
Margins are levied in futures contract
Q5.
In respect of futures prices in an efficient market
Q6.
(I) A swap is a contract in which two parties agree to a specified exchange on a future date.
(II) A put option represents a right to buy a specific underlying on a later date, at a specific price decided today.
Q7.
The tenure of a futures contract cannot exceed three months.
Q8.
If an option can be exercised any time before its expiry date, it is called:
Q9.
In a Nifty futures contract the underlying is
Q10.
In a forward contract, the buyer and the seller agree to exchange 10 grams of gold at a price of Rs. 30,000 one year from now. If the price of gold falls to Rs. 27,000, then who will gain?
Q11.
(I) A future contract is cash settled.
(II) A forward contract can be of cash settled or based on physical delivery.
Q12.
There will be no default risk in a futures contract because it is exchange oriented, whereas the probability of default is greater in forward contract.
Q13.
Futures price will be theoretically equal to the forward price
Q14.
An interest rate swap with a swap quote involves
Q15.
If an option can be exercised only on expiry date, it is called:
Q16.
The counterparty risk in a forward contract is mitigated in a futures contract primarily through:
Q17.
Daily settlement is for the premium amount and is settled on
Q18.
The put call ratio (PCR) less than one is a bearish signal.
Q19.
Which of the following statement is wrong?
Q20.
(I) Securities Transaction Tax (STT) is payable on only the derivative buy contracts.
(II) The seller has the right to receive payment for what he has sold.
Q21.
Initial margin is collected using a formula that estimates the risk to an open position over
Q22.
If the asset value exceeds the strike price then the call is Out-of-the-money.
Q23.
If a European call has a strike price of Rs 50 and the present stock price is Rs 60, with one month to go to maturity
Q24.
The maximum amount that a person can gain from an American put is
Q25.
The maximum amount that a person can gain from a European call is
Q26.
The tenure of a forward contract can be fixed by the two parties concerned.
Q27.
The near month contract expire on
Q28.
On the NSE, exercise market open time is __________ and close time is _________.
Q29.
(I) A limit order is executed only if the indicated price is at or better than available in the market.
(II) A market order is executed at the prevailing price.
Q30.
Self clearing Member (SCM) are the Trading member clearing member (TM-CM).
Q31.
Which of the statements is wrong?
Q32.
Derivative contracts in India stock exchanges began trading in
Q33.
(I) Over the counter (OTC) are non-standard and they depend on the trust between counterparties to meet their commitment as promised.
(II) Futures are Over the counter derivatives.
Q34.
The trading lot for a futures contract is specified such that the value of the lot at the time of introduction is
Q35.
The price step for futures contracts is
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