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DM Mock Test 10 

Mock Test  :  RMG Student Exclusive :        
Total Marks 100

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5/22/2019 5:35:21 AM

Total Questions  60

Pass Marks is 55%

Time Left : 00:00:00 Hrs


Question 1 :F and O Segment has a Basket trading facility [Mark 1]

Question 2 :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 2]

Question 3 :Anuj sold ABC Ltd call with strike Rs 240 and this call option is costing him Rs25 If the market lot size of ABC Ltd is 1200 what will be his pay off if he purchase the call at Rs 30 [Mark 3]

Question 4 :If the annual risk free rate is 10 percent then the r used in the Black Scholes formula should be [Mark 2]

Question 5 :You have bought a portfolio of securities on the exchange To eliminate the risk arising out of market you should _____ [Mark 2]

Question 6 :Which of the following is not the duty of the trading member [Mark 2]

Question 7 :The rate of tax applicable on derivatives has been revised to ______ of the value of the taxable securities transaction by Finance Act 2006 [Mark 2]

Question 8 :The NEAT F and O trading system [Mark 1]

Question 9 :Currently the contract size on NSE futures market is ____ Nifty [Mark 1]

Question 10 :A stock broker applies for registration to SEBI _________ [Mark 1]

Question 11 :In case of options final exercise settlement is [Mark 1]

Question 12 :Index options on the S and P CNX Nifty can be exercised __________ [Mark 2]

Question 13 :Finance Act No2 2004 has introduced__________ on all derivative transactions entered into in a recognized stock exchange [Mark 2]

Question 14 :The initial margin amount is large enough to cover a one day loss that can be encountered on ______ percent of the days [Mark 2]

Question 15 :Securities Transaction Tax is payable by the _______ of the derivative instrument [Mark 2]

Question 16 :On 15th January Raju bought a January Nifty futures contract which cost him Rs 334500 For this he had to pay an initial margin of Rs 31520 to his broker Each Nifty futures contract is for delivery of 100 Nifties On 25th January the index closed at 3360 How much profit and loss did he make [Mark 3]

Question 17 :Financial Derivatives came into spotlight in the post______ [Mark 2]

Question 18 :A stock is currently selling at Rs 50 The call option to buy the stock at Rs 45 costs Rs 9 What is the time value of the option [Mark 1]

Question 19 :Warrents have maturities upto _____ [Mark 1]

Question 20 :The market impact cost on a trade of Rs 5 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 4200 a buy order of that value will go through at a price of Rs _______ [Mark 2]

Question 21 :The potential return on a future transaction is_________ [Mark 1]

Question 22 :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 2000 units at the rate of 1260 The second client buys 2000 units at the rate of Rs 1255 and sells 1000 units at the rate of Rs 1260 [Mark 2]

Question 23 :An index contains two stocks X and Y. X has a market capitalization of 100crore and Y has a market capitalization of 300crore Then what are the weights attached to X and Y for computing weighted average [Mark 3]

Question 24 :Ashok has a portfolio worth Rs 1 million which has a beta of 1 point 2 a complete hedge would be [Mark 1]

Question 25 :The Margining system in F and O segment is based on __________ committee recommendations [Mark 1]

Question 26 :Exchange Traded funds first came into existence in [Mark 1]

Question 27 :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 28 :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 29 :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 [Mark 2]

Question 30 :An option that is at the money has only [Mark 1]

Question 31 :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 [Mark 2]

Question 32 :At expiration an option should have [Mark 2]

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 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 [Mark 2]

Question 34 :A liquid stock has a very tight bid ask spread [Mark 1]

Question 35 :The trading members contribute to Investors Protection Fund of F and O segment at the rate of [Mark 1]

Question 36 :An index should contain as many stocks with as little ______ as possible [Mark 2]

Question 37 :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 38 :The very nature of the financial markets is [Mark 2]

Question 39 :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 [Mark 3]

Question 40 :The closing price of the underlying index or security is its___________ in the Capital Market segment of NSE [Mark 3]

Question 41 :Which of the following contracts are compulsorily settled on exercise date [Mark 1]

Question 42 :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 [Mark 3]

Question 43 :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 [Mark 2]

Question 44 :If an order does not find a match in the system, then it becomes [Mark 1]

Question 45 :In the context of financial futures contract, there will be different basis for each delivery month [Mark 1]

Question 46 :A participant is a client of [Mark 2]

Question 47 :Immediate or cancel is an order which will automatically __________ in F and O segment of NSEIL [Mark 3]

Question 48 :An option to buy or sell a swap that becomes operative at the expiry of the option is called a [Mark 1]

Question 49 :The adjustments for corporate actions are carried out on all open, exercised as well as assigned positions [Mark 1]

Question 50 :A clearing member who is not a trading member is known as [Mark 3]

Question 51 :_________ are the options that can be exercised at any time upto the expiration date [Mark 1]

Question 52 :The NEAT F and O system orders match [Mark 1]

Question 53 :________ gives the buyer the right, but not the obligation to buy a given quantity of underlying asset at a given price on or before a given future date [Mark 1]

Question 54 :The NEAT F and O system supports [Mark 1]

Question 55 :On the NSEs NEAT F and O system matching takes place at [Mark 1]

Question 56 :ABC Ltd trades at Rs 200 in the spot market and two month ABC futures trades at 250 If the transactions costs incurred are 0 point 2 percent What is the arbitrage return possible [Mark 3]

Question 57 :Futures differs from forwards in the sense that [Mark 1]

Question 58 :The __________ of an option is a measure of change in option price with respect to change in price of the underlying asset [Mark 1]

Question 59 :The interest rate per annum is 11 percent the value of r in Black Scholes equation [Mark 1]

Question 60 :If the sigma on an annual basis in Black Scholes equation is 2 point 3 Calculate the sigma on daily basis Consider there are 250 trading days in a year [Mark 3]