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DM Mock Test 05 

Mock Test  :  RMG Student Exclusive :        
Total Marks 60

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12/16/2017 12:39:06 PM

Total Questions  60
 

Pass Marks is 55%

Time Left : 00:00:00 Hrs

 


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





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





Question 3 :NSCCLs online position monitoring system monitors open position of _____________on a real time basis [Mark 1]





Question 4 :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 5 :Sigma in Black Scholes equation is a measure of liquidity [Mark 1]



Question 6 :ABC Ltd trades at Rs 2000 in the spot market and two month ABC futures trades at 2050 If the transactions costs incurred are 0 point 2 percent What is the arbitrage return possible [Marks 3]





Question 7 :Contract note is signed by the _____ [Mark 1]





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




Question 9 :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 10 :The NEAT F and O system orders match _________ [Mark 1]





Question 11 :A clearing member who is not a trading member is known as _________ [Mark 1]





Question 12 :An option to buy or sell a swap that becomes operative at the expiry of the option,is called a [Mark 1]





Question 13 :Which of the following can become the professional clearing member [Mark 1]





Question 14 :A participant is a client of _________ [Mark 1]





Question 15 :Participant may trade through multiple trading members but settle through a ___________ [Mark 1]





Question 16 :On expiry date of derivative contract the settlement price will be [Mark 1]





Question 17 :Specification by NSCCL for the initial margin requirements for each derivative contract is on a _____________ [Marks 2]





Question 18 :Limits are set for each CM based on his ____________ [Mark 1]





Question 19 :For risk management by NSCCL which of the following is or are true [Marks 2]





Question 20 :Clearing members are provided a trading terminal for the purpose of monitoring the_________ of all the trading members clearing and settling through him [Mark 1]




Question 21 :Every recognized stock exchange shall furnish copy of Annual Report to [Marks 2]





Question 22 :A separate settlement guarantee fund for F and O segment has been created out of the [Marks 2]




Question 23 :The most critical component of risk containment mechanism is the [Mark 1]





Question 24 :A stock is currently selling at Rs 70 The put option to sell the stock at Rs 75 costs Rs 12 What is the time value of the option [Marks 2]





Question 25 :To be eligible for options trading the market wide position limit in the stock should not be less than Rs. ___________ [Marks 2]





Question 26 :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 [Marks 3]





Question 27 :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 28 :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 29 :An authorised person in the Futures and Options segment is [Mark 1]





Question 30 :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 and a sell order of that value will go through at a price of Rs_________ [Marks 3]





Question 31 :Mr A sells a futures contract of Ms XYZ Ltd {Lot Size 1000} expiring on 29 Sep 2005 for Rs 300 and the spot price of the share is Rs 290 The securities transaction tax thereon would be [Marks 3]





Question 32 :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 33 :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 [Marks 2]





Question 34 :The clearing member/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 [Mark 1]





Question 35 :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 36 :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 37 :Which of the following is required for personnel working in the industry in order to dispense quality intermediation [Mark 1]





Question 38 :The closing price of the underlying index or security is its_______in the Capital Market segment of NSE [Marks 2]





Question 39 :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 40 :Around 60 percent of the trading volume on the American Stock Exchange is from __________ [Mark 1]





Question 41 :If the annual risk free rate is 10 percent then the r used in the Black Scholes formula should be [Marks 2]





Question 42 :At the balance sheet date the balance in the initial margin equity index futures account should be shown separately under the head [Mark 1]





Question 43 :Which of the following is not the duty of the trading member [Marks 2]





Question 44 :On expiry the settlement price of an index futures contract is [Marks 2]





Question 45 :The NEAT F and O trading system [Mark 1]





Question 46 :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 3]





Question 47 :A stock broker applies for registration to SEBI _________ [Mark 1]





Question 48 :The futures price is ________ [Marks 2]





Question 49 :Index options on the S and P CNX Nifty can be exercised __________ [Marks 2]





Question 50 :A trading member allowed to clear his own trades only is known as _________ [Mark 1]





Question 51 :The initial margin amount is large enough to cover a one day loss that can be encountered on ______ percent of the days [Marks 2]





Question 52 :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 of 1260 The second client buys 900 units at the rate of Rs 1255 and sells 1000 units at the rate of Rs 1260 [Marks 3]





Question 53 :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 [Marks 3]





Question 54 :You are the owner of a 4 million portfolio with a beta 1 You would like to insure your portfolio against a fall in the index of magnitude higher than 12 percent Spot Nifty stands at 4200 Put options on the Nifty are available at three strike prices Which strike will give you the insurance you want [Marks 3]





Question 55 :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 56 :The beta of ACC is 0 point 5 A person has a long TELCO position of Rs 900000 coupled with a short nifty position of Rs 500000 Which of the following is TRUE [Mark 1]





Question 57 :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 _______ [Marks 2]





Question 58 :Which of the following price is used to calculate MTM of a futures contract in case it is not traded on a given day [Mark 1]





Question 59 :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 [Marks 2]





Question 60 :FII can take short positions in index derivatives not exceeding {in notional value} the FIIs holding of stocks [Mark 1]