Which of the following is true?

Assume you are an exporter and you want to sell USD that you have received as export remittance. The bank quotes a price of 65.10 / 65.12 for USDINR. At what price can you sell one unit of USD?

As a trader you believe EURUSD will move from 1.12 to 1.18 in next 2 months. Which of the following would you do to execute this view using currency futures contract of EURINR and USDINR?

As a trader you believe GBPUSD will move from 1.50 to 1.55 in next 2 months. Which of the following would you do to execute this view using currency futures contract of GBPINR and USDINR?

One year interest rate is 4% in US and 1% in UK. If current GBPUSD spot rate is 1.5, which of the following could be closest to one year future rate of GBPUSD?

If one year interest rate is 2% in US and 10% in India. If current USDINR spot rate is 64, which of the following could be closest to the six month future rate of USDINR?

An exporter sells 10 lots of one month EURINR futures at 75. At the expiry, the settlement price was announced as 75.70. How much profit/loss (in Rupees) did he make on the transaction?

An international trading company has export revenue in USD and it uses part of it to make import payments in GBP and balance is converted to INR. The company is concerned about GBPUSD risk for its import payments. Which of the following best describes company's risk and the currency futures strategy that it may use to mitigate the risk?

An IT professional buys a house for INR 600,000 for which payment has to be made after three months. As he is expecting to receive USD 10,000 in three months, he executes 10 USDINR futures contracts of 3 months maturity to hedge currency risk at a price of 60. When he received the payment, he converted USD into INR with his bank at a price of 61 for making the payment for the house and also settles the futures contract at a price of 59. Given this situation, would he have sold/bought USDINR futures while hedging the position and also would the effective price for house be lower than or higher than USD 10,000 because of this hedge?

A trader executes following currency futures trade: buys one lot of USD/INR, sells one lot of JPY/INR. What view has he executed?

A trader in India expects international gold prices to appreciate in next six months. To benefit from the view, he buys 30 grams of gold at Rupees 22,000 per gram and also sold 6 month USDINR futures at 66. After six months, gold prices have appreciated as he expected and the trader sold gold at Rupees 24,000 per gram and unwinds currency futures contract at 64. How many lots of currency futures would he have used to hedge the currency risk and how much was the real return for the investor?

In OTC market, one month USDINR is quoting at 63.75/64.00 and futures for same maturity is quoting at 64.50/64.60. Which of the following describes possible arbitrage trade and possible arbitrage profit per USD if the arbitrage trade is carried until maturity?

If you expect USDINR spot value to remain stable over next one month and also expect forward premium with USD at premium to INR to continue expect the future value of INR at a discount to USD to continue, what trade position could result in losses?

A person has invested USD 100,000 in US equities with a view of appreciation of US stock market. In next one year, his investments in US equities appreciated in value to USD 120,000. The investor decided to sell off his portfolio and repatriate the capital and profits to India. At the time of investing abroad the exchange rate was 64.5 and at the time of converting USD back into INR, he received an exchange rate of 66. How much is the return on investment in USD and in INR respectively?

A person has invested INR 100,000 in an Indian corporate bond for a year giving a return of 16% in one year. The person plans to use the proceeds from the maturity of corporate bond to fund his son's education on US. At the time of investing in the corporate bond, USDINR spot rate was 70 and one year premium was 4%. The person decides to hedge currency risk using USDINR one year futures. At the end of one year, how many USD can this person remit to his son?

A trading member (TM) has two clients "A" and "B" and he also does proprietary trading in currency futures. On day 1, TM buys 12 lots of USDINR one month futures and also sells 2 lots of the same contract on the same day in his proprietary book. On the same day, client "A" buys 12 lots of USDINR one month futures and also sells 2 lots of the same contract while client "B" buys 12 lots and sells 2 lots. What would be the open position (in USD) of the trading member, client "A" and client "B" respectively at the end of day 1?

A trading member (TM) has two clients "A" and "B" and he also does proprietary trading in currency futures. On day 1, TM buys 8 lots of USDINR one month futures and also sells 2 lots of the same contract on the same day in his proprietary book. On the same day, client "A" buys 8 lots of USDINR one month futures and also sells 2 lots of the same contract while client "B" sells 8 lots and buys 2 lots. What would be the open position (in USD) of the trading member, client "A" and client "B" respectively at the end of day 1?

Which of the following best describes the total open interest which is used for the purpose of monitoring of open position during the day?

A trader writes a call option and receives premium of 80 paise to a USD. Next day the premium for the same call option falls to 30 paise to a USD when spot prices did not change. Which of the following could best explain the drop in option price?

A trader writes a call option and receives premium of 80 paise to a USD. Next day the premium for the same call option falls to 30 paise. Which of the following transaction would result in profit for the trader?

Which of the following acts is mainly responsible for governing the securities trading in India?

Which of the following segments of market participants are allowed to trade in currency futures?

What is the minimum net worth for a company for it to be eligible for applying to become an authorized exchange for currency futures?

Which of the following organizations issues guidelines for accounting of currency futures contracts?

What are the basic accounting heads to be maintained by any market participant for maintaining currency futures accounts?

Which of the following best describes the guidelines for brokers with respect to execution of client orders?

An employee of a broking house has started giving advice on taking trading position on USDINR currency futures on TV. Which of the following best describes the steps that broking house needs to take to ensure that its employee complies with guidelines?

A client buys a USD call option at strike of 65.5 and pays a premium of INR 0.3. What would be the breakeven point for the transaction?

A client sells a USD call option at strike of 65.8 and receives a premium of INR 0.3. What would be the breakeven point for the transaction?

One of the key difference in OTC and Exchange traded USDINR currency option market is related to ___________.

A trading member has two clients in currency futures segment and one client in currency option segment. At the end of a trading day, one of the clients in currency futures segment has 5000 USD short position and the other client has 4000 USD long position. Additionally, the currency option client has 2000 USD long position. What is the gross open position for the trading member for the purpose of monitoring open position?

For a person who is trading in both currency futures and currency options, the open interest would be monitored for combined gross positions in futures and options.

A trading member has two clients in currency futures segment and one client in currency option segment. During the day, each of the clients in currency futures segment sold 6000 USD and bought 3000 USD. At the end of a trading day, each of the client in currency futures segment have 6000 USD short position and 3000 USD long position. Additionally, the currency option client has 3000 USD long position. What is the gross open position for the trading member for the purpose of monitoring open position?

An active trader in currency options market wants to execute his view on change in volatility over a period of time and wants to be insulated from changes in other factors impacting option pricing. What option strategy is he likely to use?