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DM Mock Test 01 

Mock Test  :  RMG Student Exclusive :        
Total Marks 60

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12/16/2017 12:36:38 PM

Total Questions  60
 

Pass Marks is 55%

Time Left : 00:00:00 Hrs

 


Question 1 :Weekly options trading commenced on NSE in [Mark 1]





Question 2 :A stock is currently selling at Rs 7 and the put option to sell the stock at Rs 75 costs Rs 12 than what is the time value of the option [Marks 2]





Question 3 :Ashok has a portfolio worth Rs 1 million which has a beta of 1 point 2 a complete hedge would be [Mark 1]





Question 4 :Maintenance Margin is somewhat lower then initial margin [Mark 1]



Question 5 :ABC Ltd is trades in the spot market at the rate Rs 2510 Money can be invested 9 percent pa and the fair value of a one month futures contract on ABC would be [Mark 1]





Question 6 :You bought December ABC Ltd future at Rs 260 and lot size is 1200 if you sell it at Rs 230 what will be your pay off [Marks 2]





Question 7 :If Nifty contract size is 50 and suppose that index is in the all time high territory as well as market seems to be bullish and A trading strategy is created the details of which are following Buy one Nifty 4900 Oct PA at the rate Rs 70 to 75 levels and Sell two Nifty 4600 Oct PA at the rate Rs 30 to 35 levels and which of the following is or are true [Marks 2]






Question 8 :The Margining system in F and O segment is based on _____________ committee recommendations [Mark 1]




Question 9 :Exchange Traded funds first came into existence in [Mark 1]





Question 10 :The rate of tax applicable on derivatives has been revised to ______ of the value of the taxable securities transaction by Finance Act 2006 [Mark 1]





Question 11 :You are the owner of a 2 million portfolio with a beta 1 You would like to insure your portfolio against a fall in the index of magnitude higher than 15 percent Spot Nifty stands at 2200 and Put options on the Nifty are available at three strike prices Which strike will give you the insurance you want [Mark 1]





Question 12 :The trading member position limits in equity index option contracts is higher of [Mark 1]





Question 13 :An index put option at a strike of Rs 2176 is selling at a premium of Rs 18 At what index level will it break even for the buyer of the option [Marks 2]





Question 14 :The spot price of TISCO is Rs 2050 and the cost of financing is 10 percent What is the fair price of a one month futures contract on TISCO [Marks 2]





Question 15 :The market impact cost on a trade of Rs 3 million of the S and P CNX Nifty works out to be about 0 point 05 percent This means that if S and P CNX Nifty is at 2000 a sell order of that value will go through at a price of Rs [Marks 2]





Question 16 :The maximum brokerage chargeable by a trading member in relation to trades effected in the contracts admitted to dealing on the F and O segment of NSEIL is fixed at __________ of the contract value exclusive of statutory levies [Mark 1]





Question 17 :The trading members contribute to Investors Protection Fund of F and O segment at the rate of [Mark 1]





Question 18 :You bought December ABC Ltd future at Rs 260 and lot size is 1200 if you sell it at Rs 230 what will be your pay off [Mark 1]





Question 19 :In case a Future Contract is not traded in a day which of the following prices is reckoned for daily mark to market settlement [Mark 1]





Question 20 :An index contains two stocks X and Y and X has a market capitalization of 100 crore and Y has a market capitalization of 300 crore Then what are the weights attached to X and Y for computing weighted average [Marks 2]





Question 21 :Cyrus is short 600 WIPRO July Puts at strike Rs 1520 for a premium of Rs 33 each on July 22 2002 On July 25 2002 the expiration day of the contract the spot price of WIPRO closes at Rs 1553 while the July futures on WIPRO close at 1555 Does Cyrus have an obligation to the Clearing Corporation on his positions and how much if any [Marks 2]





Question 22 :Assume that the base value of a market capitalization weighted index were 1000 and the base market capitalisation were Rs 35000 crore If the current market capitalisation is Rs 77000 crore the index is at Rs [Marks 2]





Question 23 :Which of the following contracts are compulsorily settled on exercise date [Mark 1]





Question 24 :Current price of ABC Ltd is Rs 272 and if 250 strike call is quoted at Rs 60 than What is the intrinsic value [Mark 1]





Question 25 :Sunil purchased a call option on 100 shares of ABC Ltd and the details of the transaction are Spot Market price of ABC Ltd is Rs 199 and Strike Price is Rs 200 and Option Premium is Rs 5 Which of the following is true [Marks 2]





Question 26 :Santosh is bearish about ABC Ltd and sells ten one month ABC Ltd futures contracts at Rs 296000 On the last Thursday of the month ABC Ltd closes at Rs 310 He makes a assume one lot 100 [Marks 2]





Question 27 :The initial margin amount is large enough to cover a one day loss that can be encountered on ___ percent of the days [Mark 1]





Question 28 :The market impact cost on a trade of Rs 4 million of the S and P CNX Nifty works out to be about 0 point 06 percent This means that if S and P CNX Nifty is at 4000 a sell order of that value will go through at a price of Rs_______[Marks 3]




Question 29 :You are the owner of a 2 million portfolio with a beta 1 You would like to insure your portfolio against a fall in the index of magnitude higher than 15 percent Spot Nifty stands at 2200 Put options on the Nifty are available at three strike prices Which strike will give you the insurance you want [Marks 2]





Question 30 :Current price of ABC Ltd is Rs 272 and if 250 strike call is quoted at Rs 60 What is the intrinsic value [Mark 1]





Question 31 :The interest rate per annum is 11 percent the value of r in Black Scholes equation [Mark 1]





Question 32 :Hedging with index futures means [Mark 1]





Question 33 :The market impact cost on a trade of Rs 3 million of the S and P CNX Nifty works out to be about 0 point 04 percent This means that if S and P CNX Nifty is at 4100 a sell order of that value will go through at a price of Rs___________[Marks 3]





Question 34 :What is the outstanding position on which initial margin will be levied, if no proprietary trading is d one and the details of client trading are one client buys 1000 units at the rate 1260 and the second client buys 1000 units at the rate Rs 1255 and sells 1000 units at the rate Rs 1260 [Marks 3]





Question 35 :Ms Shetty has sold 600 calls on DR REDDYS LAB at a strike price of Rs 992 for a premium of Rs 25 per call on April 1 2002 The closing price of equity shares of DR REDDYS LAB is Rs 994 on that day If the call option is assigned against her on that day what is her net obligation on April 01 2002 [Marks 3]





Question 36 :Santosh is bearish about ABC Ltd and sells ten one month ABC Ltd futures contracts at Rs 296000 On the last Thursday of the month ABC Ltd closes at Rs 310 He makes a ____________ assume one lot is equal to 100 [Marks 2]





Question 37 :Ms Shetty has sold 300 calls on WIPRO at a strike price of Rs 1503 for a premium of Rs 28 per call on April 1 2002 The closing price of equity shares of WIPRO is Rs 1553 on that day If the call option is assigned against her on that day what is her net obligation on April 01 2002 [Marks 3]





Question 38 :What is the outstanding position on which initial margin will be levied if no proprietary trading is done and the details of client trading are one client buys 500 units at the rate 1260 and the second client buys 900 units at the rate Rs 1255 and sells 1000 units at the rate Rs 1260 [Marks 2]





Question 39 :VaR methodology seeks to measure the amount of value that a portfolio may stand to lose within a certain horizon time period due to potential changes in [Mark 1]





Question 40 :Mr A sells a futures contract of Ms XYZ Ltd Lot Size 1000 expiring on 29 Sep 2005 for Rs 300 The spot price of the share is Rs 290 The securities transaction tax thereon would be [Marks 2]





Question 41 :An index put option at a strike of Rs 2176 is selling at a premium of Rs 18 At what index level will it break even for the buyer of the option [Marks 3]





Question 42 :Which of the following should be disclosed separately for long and short positions in respect of each series of equity index futures as of the balance sheet date [Mark 1]





Question 43 :Futures differs from forwards in the sense that [Mark 1]





Question 44 :You have bought a portfolio of securities on the exchange To eliminate the risk arising out of market you should [Mark 1]





Question 45 :The clearing member and trading member is required to disclose to the clearing corporation details of any person or persons acting in concert who together own _________ percent or more of the open interest of all futures and options contracts on a particular underlying index on the stock exchange [Marks 2]





Question 46 :The spot price of TISCO is Rs 2050 and the cost of financing is 10 percent What is the fair price of a one month futures contract on TISCO [Marks 3]





Question 47 :Cyrus is short 600 WIPRO July Puts at strike Rs 1520 for a premium of Rs 33 each on July 22 2002 On July 25 2002 the expiration day of the contract the spot price of WIPRO closes at Rs 1553 while the July futures on WIPRO close at 1555 Does Cyrus have an obligation to the Clearing Corporation on his positions and how much if any [Marks 3]





Question 48 :June futures contract on WIPRO closed at Rs 1153 on May 20 and at Rs 1150 on May 21 2002 Raju has a short position of 4000 in the June futures contract On May 21 2002 he sells 3000 units of 10 June 2002 expiring Put Options on WIPRO at strike price of Rs 1145 for a premium of Rs 28 per unit What is his net obligation to from the Clearing Corporation for May 21 2002 [Marks 2]





Question 49 :Assume that the base value of a market capitalization weighted index were 1000 and the base market capitalisation were Rs 35000 crore If the current market capitalisation is Rs 77000 crore the index is at Rs [Mark 1]





Question 50 :Around 60 of the trading volume on the American Stock Exchange is from [Mark 1]





Question 51 :If the annual risk free rate is 10 percent then the r used in the Black Scholes formula should be [Mark 1]





Question 52 :You are the owner of a 5 million portfolio with a beta 1 You would like to insure your portfolio against a fall in the index of magnitude higher than 10 percentage Spot Nifty stands at 4000 Put options on the Nifty are available at three strike prices Which strike will give you the insurance you want [Marks 3]





Question 53 :Ms Shetty has sold 1000 calls on ABC Ltd at a strike price of Rs 885 for a premium of Rs 27 per call on April 1 The closing price of equity shares of ABC Ltd is Rs 890 on that day If the call option is assigned against her on that day what is her net obligation on April 01 [Marks 3]






Question 54 :Anuj sold ABC Ltd call with strike Rs 240 and this call option is costing him Rs 25 and if the market lot size of ABC Ltd is 1200 than what will be his pay off if he purchase the call at Rs 30 [Marks 2]





Question 55 :The exchange phases out derivative contract on a particular underlying if it checks on a monthly basis, weather a stock has remained subject to the ban on new position for a significant part of the month consistently for ______ months [Mark 1]





Question 56 :In case of ban on the fresh position in the process of enforcement of the market wide limits, the normal trading in that scrip is resumed after the open outstanding comes down to ______ or below of the market wide position limit [Marks 2]





Question 57 :In the process of enforcement of the market wide limits, the exchange tests weather the market wide open interest for any scrip exceeds _____ of the market wide position limit for that scrip [Marks 2]





Question 58 :In futures trading profits are received or losses are paid ______________ [Mark 1]





Question 59 :Futures market can be used for creating synthetic index funds [Mark 1]



Question 60 :The interest free security deposit or IFSD required for the professional clearing membership in F and O segment is _____ lakh [Mark 1]