nism series viii - equity derivatives model paper

Top 10 NISM Series VIII - Equity Derivatives Demo Questions

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Q.1. A ____________ is created by shorting a call and a put option of same strike and same expiry.

A. Long StraddleB. Short StraddleC. Bullish spreadD. None of the above

Q.2. A buyer of Call Option –.

A. Has the obligation to take delivery of assetB. Has the obligation to give delivery of assetC. Has the right to buy the underlying assetD. Has the right to sell the underlying asset

Q.3. A calendar spread will attract ____margin.

A. ZeroB. HigherC. LowerD. None of the above

Q.4. A member has two clients Rohit and Mohit. Rohit has purchased 100 contracts and Mohit has sold 300 contracts in March Tata Steel futures series. What is the outstanding liability (open Position) of the member towards Clearing Corporation in number of contracts?

A. 100B. 300C. 400D. 200

Q.5. A portfolio of Rs 25 lacs has a beta of 1.20. A complete hedge is obtained by ______ .

A. by selling Nifty futures of Rs 25 lacsB. by selling Nifty futures of Rs 28 lacsC. by selling Nifty futures of Rs 30 lacsD. by buying Nifty futures of Rs 28 lacs

Q.6. A trader buys a call and a put option of same strike price and same expiry. This is called as _________ .

A. ButterflyB. Short StraddleC. Long StraddleD. Calendar Spread

Q.7. A trader Mr. Raj wants to sell 10 contracts of June series at Rs.5200 and a trader Mr. Rahul wants to buy 5 contracts of July series at Rs. 5250. Lot size is 50 for both these contracts. The Initial Margin is fixed at 10%. They both have their accounts with the same broker. How much Initial Margin is required to be collected from both these investors by the broker?

A. Rs 2,60,000B. Rs 1,31,250C. Rs 3,91,250D. Rs 1,28,750

Q.8. A trader sells a lower strike price CALL option and buys a higher strike price CALL option, both of the same scrip and same expiry date. This strategy is called _______ .

A. Bearish SpreadB. Bullish SpreadC. Long term InvestmentD. Butterfly

Q.9. A Trading Member can also be a Clearing Member – True or False ?

A. TrueB. False

Q.10. All the orders entered on the Trading System of a Derivative Exchange are at Prices exclusive of brokerage. True or False ?

A. FalseB. True

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