Question Bank for the preparation NISM Series VIII Equity Derivatives certification examination

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2. What is a measure of systematic risk of a security that cannot
be avoided through diversification
A. Delta
B. Gamma
C. Vega
D. Beta
E. I am not attempting this question
ANSWER: D
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3. The price per share of the underlying security at which it may
be purchased or sold by the option holder
A. Time value
B. Intrinsic value
C. Premium
D. Strike price
E. I am not attempting this question
ANSWER: D
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4. For stop-loss buy order, the trigger price is ______ the limit
price.
A. Less than
B. Greater than
C. Equal to
D. None of the above
E. I am not attempting this question
ANSWER: A
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5. The option with strike price worse than the spot price for the
holder of option.
A. In the money (ITM) option
B. At the money (ATM) option
C. Out of the money (OTM) option
D. None of the above
E. I am not attempting this question
ANSWER: C
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6. Volatility of prices of the underlying assets and dividend yield
do not affect the option values.
A. TRUE
B. FALSE
C. Neither true nor false
D. Insufficient information
E. I am not attempting this question
ANSWER: B
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7. Index Management in BSE is done by
A. NSE indexation team
B. India Index Services and Products Ltd. (IISL)
C. Index Cell
D. Index company
E. I am not attempting this question
ANSWER: C
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8. In a business daily to get information about the top gainers in
the futures market, one has to look into the heading
A. Open Interest
B. Positive trend
C. Negative trend
D. Contract details
E. I am not attempting this question
ANSWER: B
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9. Clearing corporation
A. Acts as counterparty in every transaction
B. Monitors the market and market participants.
C. Reduces the number of payments due to netting
D. All of the above
E. I am not attempting this question
ANSWER: D
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10. For ascertaining 'Fit and Proper person', the SEBI Board may take
into account the following eligibility criteria but not limit itself to
A. Integrity, reputation and character,
B. Absence of convictions and restraints order,
C. Competence including financial solvency and net worth of the
applicant.
D. All of the above
E. I am not attempting this question
ANSWER: D
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11. With increase in spot price, price of a call option will
A. Increase
B. Decrease
C. remain constant
D. Insufficient information
E. I am not attempting this question
ANSWER: A
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