Mock test NISM Series (VIII) Equity Derivatives Test-2 -

Created on May 11, 2021

Mock test NISM Series (VIII) Equity Derivatives

NISM Equity Derivatives Exam Pattern

NISM Series (VIII) Equity Derivatives Examination Pattern
Exam Fees	Rs. 1500 +
Test Duration	2 Hours (120 Minutes)
Total Questions	100 Questions
Maximum Marks	100 marks
Passing Marks	60% (60 Marks)
Negative Marking	– 25% of the marks assigned to the question

NISM Equity Derivatives Exam Syllabus Outline

Units	Chapter Name
Unit 1	Basics of Derivatives
Unit 2	Understanding Index
Unit 3	Introduction to Forwards and Futures
Unit 4	Introduction to Options
Unit 5	Option Trading Strategies
Unit 6	Introduction to Trading Systems
Unit 7	Introduction to Clearing and Settlement system
Unit 8	Legal and Regulatory Environment
Unit 9	Accounting and Taxation
Unit 10	Sales Practices and Investors Protection Services

1 / 10

A put option gives the buyer a right to sell how much of the underlying to the writer of the option?

Only the specified quantity (lot size of the option contract)

Any quantity

2 / 10

A European call option gives the buyer the right but not the obligation to buy from the seller an underlying at the prevailing market price "on or before" the expiry date.

True

False

3 / 10

What role do speculators play in the futures market?

They take delivery of the commodities at expiration

They add to the liquidity in the futures markets

4 / 10

Cost of carry model states that

Price of Futures = Spot + Cost of Carry

Price of Futures = Spot - Cost of Carry

5 / 10

Selling short a stock means

Seller own the stock he is supposed to deliver

Seller does not own the stock he is supposed to deliver

both of the above

6 / 10

Three Call series of ABC stock - January, February and March are quoted. Which will have the lowest Option Premium (same strikes)?

January

February

March

7 / 10

In which option is the strike price better than the market price (i.e., price difference is advantageous to the option holder) and therefore it is profitable to exercise the:

In-the -money option

At-the-money option

Out-of the money option

8 / 10

Higher the price volatility of the underlying stock of the put option, ________ would be the premium

higher

lower

9 / 10

Exchange traded options are

Customised options

Standardised options

10 / 10

An in-the-money option is an option with a ________ intrinsic value

Positive

Negative

Your score is

The average score is 83%

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