Equity Derivatives Certification Free Demo Test 4

/10

1 / 10

1. In the futures market, a long position can only be offset with the same counterparty from whom the contract was originally purchased – True or False?

a) True

b) False

2 / 10

2. The broker is obligated to obtain a signed Risk Disclosure Document from the client during the client registration process – True or False?

a) True

b) False

3 / 10

3. If Meghna intends to sell 34 contracts of ABC futures at Rs. 2450 (with a contract multiplier of 50) and the initial margin requirement is 7%, what is the total initial margin she needs to pay?

a) Rs. 5831

b) Rs. 83300

c) Rs. 291550

d) Rs. 4165000

4 / 10

4. Arbitrage involves achieving a risk-free profit by simultaneously buying and selling identical or replicating assets in two or more different markets – True or False?

a) True

b) False

5 / 10

5. In the event of a member’s default, the Clearing Corporation cannot transfer client positions to another member or close out all open positions of the defaulting member without prior approval from SEBI – True or False?

a) True

b) False

6 / 10

6. The Clearing Corporation of an Exchange guarantees the performance of exchange-traded contracts – True or False?

a) True

b) False

7 / 10

7. Under what conditions is it profitable to exercise options?

a) In the Money

b) At the Money

c) Out of the Money

d) None of the above

8 / 10

8. The seller of a call option can potentially incur an unlimited loss – True or False?

a) True

b) False

9 / 10

9. ‘Bulls’ are investors who anticipate that the market will experience an upward movement – True or False?

a) True

b) False

10 / 10

10. The initial margin is always equivalent to the mark-to-market margin – True or False?

a) True

b) False

Your score is

Exit

Equity Derivatives Certification Free Demo Test 4

Co-partner of NISMExams.in