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DM Mock Test 08 

Mock Test  :  RMG Student Exclusive :        
Total Marks 100

Please do not refersh or reload this page

12/16/2017 12:34:48 PM

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 :SPAN has the ability to estimate risk for ____________[Mark 1]





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 :The adjustments for corporate actions are carried out on all open, exercised as well as assigned positions [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 :Suppose the index spot is at 1000 and two month futures trade at 1040, Suppose the transaction costs involved in placing an index trade are 0 point 25 percent and Index dividends over two months are 0 point 10 percent, What is the net rate of return [Mark 3]





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 :Which of the following contracts are compulsorily settled on exercise date [Mark 2]





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 :Options have____________ [Mark 1]





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





Question 12 :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 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 price specified in the options contract is known as the ____________ [Mark 1]





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





Question 16 :_____________ are the options that can be exercised at any time upto the expiration date [Mark 2]





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



Question 18 :_______ order allows the user to execute a contract as soon as it is entered into the system, failing which the order is immediately cancelled from the system [Mark 1]





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





Question 20 :For option, which of the following is true [Mark 2]





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





Question 22 :Which of the following is or are true [Mark 3]





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





Question 24 :Which of the following can not be an underlying for a financial derivative [Mark 1]





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





Question 26 :A stock is currently selling at Rs 165, The put option at Rs 163 strike price costs Rs 3, What is the time value of the option [Mark 1]





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





Question 28 :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, The second client buys 900 units at the rate Rs 1255 and sells 1000 units at the rate Rs 1260 [Mark 2]





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





Question 30 :Forward contracts are ________ contracts [Mark 1]





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 :A receiver swaption is an option to receive ______ and pay ______ [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 :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 [Mark 3]





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



Question 36 :CNX IT is a derivatives contract on NSE, True or False [Mark 1]



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





Question 38 :On expiry the settlement price of a stock option contract is the ________[Mark 2]





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





Question 40 :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 _______ [Mark 2]





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





Question 42 :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, The second client buys 1000 units at the rate Rs 1255 and sells 1000 units at the rate Rs 1260 [Mark 2]





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 :Reliance Industries Ltd does not have a Beta value, True or False [Mark 1]



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





Question 46 :The beta of ICICI Bank is 1 point 5, A person has a long position of Rs 400,000 of ICICI Bank, Which of the following gives a complete hedge [Mark 3]





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 :Futures have a _______ pay off [Mark 1]





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 :Ms Shetty has sold 5000 calls on ABC Ltd at a strike price of Rs 500 for a premium of Rs 25 per call on April 1, The closing price of equity shares of ABC Ltd is Rs 505 on that day, If the call option is assigned against her on that day, what is her net obligation on April 01 [Mark 3]





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 :Which of the following is the duty of the trading member [Mark 2]





Question 53 :The only way an investor can manage risks in the underlying cash market is by [Mark 2]





Question 54 :Nifty is a ________ index [Mark 1]





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 :On 1st January, a three month call option on the Nifty with a strike of 4280 is available for trading, The T that is used in the Black Scholes formula should be _______ [Mark 2]





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 :Cyrus is short 800 WIPRO July Puts at strike Rs 1520 for a premium of Rs 43 each on July 22, On July 25, the expiration day of the contract, the spot price of WIPRO closes at Rs 1553, while the July futures on WIPRO close at 1655, Does Cyrus have an obligation to the Clearing Corporation on his positions, and how much, if any [Mark 3]





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 :Assume that the base value of a market capitalization weighted index were 1000 and the base market capitalisation were Rs 70,000 crore, If the current market capitalisation is Rs 140,000 crore, the index is at Rs ____ [Mark 1]