Equity Derivatives Certification Free Demo Test 6 -

Equity Derivatives Certification Free Demo Test 6

/10

Equity Derivatives Certification Free Demo Test 6

1 / 10

1. Are Professional Clearing members restricted to acting solely on behalf of institutional clients?

a) Yes

b) No

2 / 10

2. Is it true or false that trading members are required to maintain a higher level of book net worth compared to clearing members?

a) True

b) False

3 / 10

3. True or False: To close a long or short position in a futures contract, one can initiate a reverse trade.

a) True

b) False

4 / 10

4. The introduction of forward contracts is driven by the idea and economic rationale to ________.

a) Help hedging

b) Help arbitrage

c) Help trading

d) Both 1 and 2

5 / 10

5. The introduction of forward contracts is driven by the idea and economic rationale to ________.

a) Current Liabilities

b) Current Assets

c) Fixed Assets

d) Bad Debts

6 / 10

6. A person who is bullish and a payer of premium is a ____________.

a) Seller of call option

b) Buyer of call option

c) Seller of put option

d) Buyer of put option

7 / 10

7. Investor Mr. X intends to sell 11 contracts of the February series at Rs. 6300, and investor Mr. Y wants to sell 13 contracts of the March series at Rs. 6450. The lot size is 50 for both these contracts, and the initial margin is fixed at 6%. What is the total initial margin required to be collected from both these investors (sum of the initial margin of X and Y) by the broker?

a) Rs 459450

b) Rs 640000

c) Rs 251550

d) Rs 374900

8 / 10

8. A trader has initiated a short position of one contract in September ABC futures (contract multiplier 50) at a price of Rs. 1800. Upon closing this position after a few days, he found that he had made a profit of Rs. 5000. What would have been the closing action that allowed him to generate this profit? (Please ignore brokerage costs).

a) Selling 1 Sept ABC futures contract at 1700

b) Selling 1 Sept ABC futures contract at 1900

c) Buying 1 Sept ABC futures contract at 1700

d) Buying 1 Sept ABC futures contract at 1900

9 / 10

9. The option that grants the holder the right to purchase the underlying asset on or before a specific date for a predetermined price is known as _________.

a) European call option.

b) American call option

c) American put option

d) European put option

10 / 10

10. A call option provides the holder with the right to buy how much of the underlying asset from the option writer?

a) The specified quantity or less than the specified quantity

b) Only the specified quantity

c) The specified quantity or more than the specified quantity

d) None of the above

Your score is

Exit

Equity Derivatives Certification Free Demo Test 6

Co-partner of NISMExams.in