NISM Series VIII 100% Free Mock Test NISM Series VIII 1 / 15 What is an index Option? it's a derivatives product it's a essentially settled in cash index options are not allowed in indian market Both 1 and 2 2 / 15 An index Option is a derivative product settled in cash rarely traded on the indian stock exchanges Both 1 and 2 3 / 15 To whom is a high impact cost beneficial Only buyers Only sellers Neither buyers nor sellers only arbitrageurs 4 / 15 Counterparty risk can also be called as Credit Risk Default Risk Both 1 and 2 Speculative Risk 5 / 15 Which is not a derivatives market product. Preference Shares Futures Swap Options 6 / 15 A person who's bullish and a payer of premium is a buyer of call option seller of call option buyer of put option seller of put option 7 / 15 As per Accounting Standards, the initial margin paid by an option seller is shown under______in the balance sheet Bad Debts Fixed Assets Current Assets Current Liabilities 8 / 15 The idea and economic rational of introducing forward contacts is to help arbitrage help trading help hedging both 1 and 3 9 / 15 If you have a long or short position in a futures contact, this can be closed by initiating a reverse trade - True or Fals ? True False 10 / 15 Trading members shall maintain a higher level of Book net worth than the clearing members - State True or Fals ? True False 11 / 15 Can Professional Clearing members act only on behalf of institutional client ? Yes no 12 / 15 A trader is very bearish on specific companies. However, he is bullish on the market as a whole. which of the following is the most appropriate strategy to take advantage from this view? sell the shares of those specific companies in futures and also sell index futures sell the shares of those specific companies in futures and buy index futures buy the shares of those specific companies in futures and sell index futures do nothing 13 / 15 Which of the following is closest to the forward price of a share if cash price is Rs 425, forward contract maturity = 12 months from date, market interest rate 12% 425 482 476 437 14 / 15 A call option gives the holder a right to buy how much of the underlying from the writer of the option? The specified quantity or less than the specified quantity The specified quantity or more than the specified quantity Only the specified quantity None of the above 15 / 15 the option which gives the holder a right to buy the underlying asset on or before a particular date for a certain price, is called as European put option American put option American call option European call option Your score isThe average score is 43% 0% Restart quiz