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DM Mock Test 16 

Mock Test  :  RMG Student Exclusive :        
Total Marks 100

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5/22/2019 6:07:12 AM

Total Questions  60

Pass Marks is 55%

Time Left : 00:00:00 Hrs


Question 1 :Necessary data inputs for margin calculations are provided to members daily in a file called the ___________[Mark 2]

Question 2 :Current price of ABC Ltd is Rs 272, If 250 strike call is quoted at Rs 60, What is the intrinsic value [Mark 2]

Question 3 :Any adjustment for corporate actions is carried out on the ________on which security is traded on a _____ basis in the underlying equities market, after the close of ______________ [Mark 2]

Question 4 :Ask means the ________ [Mark 1]

Question 5 :The SEBI Committee on derivatives has recommended that the exposure limits for brokers should be linked to the __________ [Mark 2]

Question 6 :Nifty index is used in _________ [Mark 2]

Question 7 :Index futures trade on Exchange as one, two and three month contracts, Spot index is at 1200, ABC Ltd which is at Rs 120 in the spot market has a weight of 5 percent in index, If expected dividend from the stock is of Rs 20 per share after 15 days of purchasing the contract, the cost of borrowing is 15 percent pa, What will be the price of a new two month futures contract on the underlying Index, Take index contract size is equal to 200 units [Mark 3]

Question 8 :The fair value of futures contract is calculated on the basis of [Mark 1]

Question 9 :ABC Ltd is at Rs 405 in the spot market, the cost of financing is 12 percent pa, What is the fair value of two month futures on ABC [Mark 1]

Question 10 :The interest rate per annum is 11 percent, the value of r in Black Scholes equation [Mark 1]

Question 11 :In April, 1973, CBOE was set specifically for the purpose of trading ______ [Mark 1]

Question 12 :Fund settlement in the F and O segment of NSE takes place through [Mark 1]

Question 13 :The writer of an option has an obligation to sell or buy the asset if the buyer exercises on him [Mark 1]

Question 14 :The exchange may consider introducing stock options and stock futures on a stock of a company which is coming out with IPO, at the time of listing, if net public offer is [Mark 3]

Question 15 :Initial margin is collected to _____________ [Mark 1]

Question 16 :The eligibility of a stock or index for trading in Derivatives segment is based upon the criteria laid down by [Mark 1]

Question 17 :European options are options that can be exercised only on the expiration date itself [Mark 1]

Question 18 :The value of taxable securities transaction relating to option in securities is the [Mark 3]

Question 19 :The date specified in the options contract is known as _____________ [Mark 2]

Question 20 :For selecting stocks and indices on which Futures and Options contracts would be introduced [Mark 3]

Question 21 :A stock broker is allowed to buy, sell or deal in securities ______________ [Mark 3]

Question 22 :If the last Thursday is a trading holiday, then the expiry day is [Mark 2]

Question 23 :Option premium can be broken down into __________and time value [Mark 1]

Question 24 :The very nature of the financial markets is [Mark 3]

Question 25 :Swaps can be regarded as portfolios of ________ [Mark 1]

Question 26 :Novation means that the clearing corporation interposes itself into every transaction, buying from the seller and selling to the buyer [Mark 1]

Question 27 :LEAPS have a maturity of upto _________ [Mark 1]

Question 28 :Options have____________ [Mark 1]

Question 29 :A payer swaption is an option to pay ______ and receive ______ [Mark 2]

Question 30 :The complex calculations, like pricing of options, in SPAN are executed by _____________ and results of these calculations are called ____________ [Mark 3]

Question 31 :You are the owner of a 5 million portfolio with a beta 1 point 0, You would like to insure your portfolio against a fall in the index of magnitude higher than 10 percent, 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 [Mark 3]

Question 32 :The stock shall be chosen in terms of [Mark 2]

Question 33 :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 _______ [Mark 2]

Question 34 :F and O Segment has a Basket trading facility [Mark 1]

Question 35 :BANK Nifty is a derivative contract on NSE ____________True or False [Mark 1]

Question 36 :The initial margin amount is large enough to cover a one day loss that can be encountered on __________ [Mark 2]

Question 37 :Forward contracts on expira tion have to settled by __________ [Mark 2]

Question 38 :ABC Ltd is trades in the spot market at the rate Rs 2510, Money can be invested at the rate 9 percent pa, the fair value of a one month futures contract on ABC would be [Mark 2]

Question 39 :In an index fund, trading in the stocks comprising the fund, is required in response to______ [Mark 1]

Question 40 :Finance Act No 2, 2004 has introduced ___________ on all derivative transactions entered into in a recognized stock exchange [Mark 2]

Question 41 :The following is an example of an order with time condition [Mark 1]

Question 42 :Every stock price moves for two possible reasons, 1st News about the company, 2nd News about the country, In the above scenario, the job of the index is to capture the second part [Mark 1]

Question 43 :The beta of TELCO is 0 point 8, A person has a long TELCO position of Rs 800,000 coupled with a short Nifty position of Rs 600,000, Which of the following is TRUE [Mark 3]

Question 44 :The beta measures [Mark 2]

Question 45 :Nifty consists of securities having _____ market capitalization stocks [Mark 1]

Question 46 :The last day on which the contract will be traded, at the end of which it will cease to exist is called expiry date [Mark 1]

Question 47 :On 15th January, Raju bought a January Nifty futures contract which cost him Rs 334,500, For this he had to pay an initial margin of Rs 31,520 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 1]

Question 48 :Which of the following is or are true [Mark 3]

Question 49 :Mr A buys a futures contract of Ms XYZ Ltd Lot Size 1000 expiring on 29th Sep for Rs 300, The spot price of the share is Rs 290, Does he have to pay securities transaction tax [Mark 1]

Question 50 :An option to buy or sell a swap, that becomes operative at the expiry of the option, is called a __________ [Mark 2]

Question 51 :An index put option at a strike of Rs 4200 is selling at a premium of Rs 30, At what index level will it break even for the buyer of the option [Mark 1]

Question 52 :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 2]

Question 53 :The only way an investor can manage risks in the underlying cash market is by [Mark 1]

Question 54 :The settlement for the options contracts is or are __________ [Mark 2]

Question 55 :You have bought a stock on the exchange, To eliminate the risk arisin g out of the stock price, you should _____ [Mark 2]

Question 56 :Limits are set for each CM based on his ____________ [Mark 1]

Question 57 :The spot price of ABC Ltd is Rs 2000 and the cost of financing is 10 percent, What is the fair price of a one month futures contract on ABC Ltd [Mark 1]

Question 58 :In case of in the money options, buyer needs to give an exercise notice [Mark 1]

Question 59 :On 15th October, Arvind bought a December Nifty futures contract which cost him Rs 325,600, For this he had to pay an initial margin of Rs 30,100 to his broker, Each Nifty futures contract is for delivery of 100 Nifties, On 27th December, the index closed at 3280, How much profit and loss did he make [Mark 2]

Question 60 :OTC derivatives [Mark 1]