This document provides information about free mock tests, video lessons, and question banks available on SimplyPaisa.com to help prepare for exams on equity derivatives, capital markets, mutual funds, and other topics. A series of multiple choice questions covering these subjects is also included. The document promotes visiting SimplyPaisa.com/academy for additional courses, question banks, and exam preparation resources across various financial certifications.

1. SimplyPaisa.com
FREE MOCK TEST
for
NISM Equity Derivatives
Also available Video lessons, Question Bank and Mock Test for NISM
exam preparation for Equity Derivatives Series VIII
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2. Buying a call and a put option of different strike and same
expiry
A. Long straddle
B. Short straddle
C. Long strangle
D. Short strangle
E. I am not attempting this question
ANSWER: C
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3. An exchange traded futures contract is similar to an OTC (over the
counter) derivative. Some common features are :
A. Both are tailored (e.g. non-standardiseinstruments
B. Both require margin collection by a clearing house
C. Both are exposed to credit-risk i.e. risk of non-performance by
counter party
D. None of the above
E. I am not attempting this question
ANSWER: D
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4. Generally, final decision of inclusion or removal of a security from
the index is taken by a specialized committee known as
A. Exchange board
B. Index Committee
C. SEBI board
D. Exchange management committee
E. I am not attempting this question
ANSWER: B
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5. The underlying assets for derivatives contracts in India include(s)
A. Stocks
B. Commodities
C. Index
D. All of the above
E. I am not attempting this question
ANSWER: D
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6. Cash market is a market with immediate or near immediate
delivery
A. TRUE
B. FALSE
C. Neither true nor false
D. Insufficient information
E. I am not attempting this question
ANSWER: A
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7. Increased fluctuations in underlying asset prices in financial
markets is one of the important factor for
A. Growth of financial derivatives
B. profits to traders
C. growth in production
D. decline in money flow
E. I am not attempting this question
ANSWER: A
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8. Intrinsic value of an option cannot be negative.
A. TRUE
B. FALSE
C. Neither true nor false
D. Insufficient information
E. I am not attempting this question
ANSWER: A
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9. Every clearing member needs to maintain an account with
A. State Bank of India
B. Reserve Bank of India
C. Settlement bank
D. Clearing bank
E. I am not attempting this question
ANSWER: D
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10. The only difference between Self Clearing Member and Trading &
Clearing Member is that
A. SCM does not have the rights to clear the trades of other
members
B. TCM does not have the rights to clear the trades of other
members
C. SCM does not have the rights to trade for other members
D. TCM does not have the rights to trade for other members
E. I am not attempting this question
ANSWER: A
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11. The type of margin which is collected from the member before
the start of the trading of the next day is ______.
A. Mark to Market margin
B. Initial margin requirements
C. Extreme loss margin
D. Capital adequacy
E. I am not attempting this question
ANSWER: A
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12. Visit http://www.simplypaisa.com/academy/ for more
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