Financial derivatives provide the facility for __________.

Operational risks include losses due to ____________.

Impact cost is low when the liquidity in the system is poor.

You sold one XYZ Stock Futures contract at Rs. 278 and the lot size is 1,200. What is your profit (+) or loss (-), if you purchase the contract back at Rs. 265?

You have taken a short position of one contract in June XYZ futures (contract multiplier 50) at a price of Rs. 3,400. When you closed this position after a few days, you realized that you made a profit of Rs. 10,000. Which of the following closing actions would have enabled you to generate this profit? (You may ignore brokerage costs.)

Which of the following is closest to the forward price of a share, if Cash Price = Rs.750, Forward Contract Maturity = 6 months from date, Market Interest rate = 12%?

If you have sold a XYZ futures contract (contract multiplier 50) at 3100 and bought it back at 3300, what is your gain/loss?

A calendar spread contract in index futures attracts ___________.

Client A has purchased 10 contracts of December series and sold 7 contracts of January series of the NSE Nifty futures. How many lots will get categorized as regular (non-spread) open positions?

An investor, who is anticipating a broad stock market fall, but is not willing to sell his entire portfolio of stocks, can offset his potential losses by shorting a certain number of Index futures.

Margins in 'Futures' trading are to be paid by _______.

When the near leg of the calendar spread transaction on index futures expires, the farther leg becomes a regular open position.

Selling short a stock means ___________.

The buyer of an option cannot lose more than the option premium paid.

Cost of carry model states that ______________.

What role do speculators play in the futures market?

You sold a Put option on a share. The strike price of the put was Rs245 and you received a premium of Rs 49 from the option buyer. Theoretically, what can be the maximum loss on this position?

Current Price of XYZ Stock is Rs 286. Rs. 260 strike call is quoted at Rs 45. What is the Intrinsic Value?

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.

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

An in-the-money option is _____________.

An option with a delta of 0.5 will increase in value approximately by how much, if the underlying share price increases by Rs 2?

Exchange traded options are _______________.

Higher the price volatility of the underlying stock of the put option, ______________.

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 option?

Mr. X purchases 100 put option on stock S at Rs 30 per call with strike price of Rs 280. If on exercise date, stock price is Rs 350, ignoring transaction cost, Mr. X will choose _____________.

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

Which is the ratio of change in option premium for the unit change in interest rates?

If you sell a put option with strike of Rs 245 at a premium of Rs.40, how much is the maximum gain that you may have on expiry of this position?

If an investor buys a call option with lower strike price and sells another call option with higher strike price, both on the same underlying share and same expiration date, the strategy is called ___________.

On the derivative exchanges, all the orders entered on the Trading System are at prices exclusive of brokerage.

A trader has bought 100 shares of XYZ at Rs 780 per share. He expects the price to go up but wants to protect himself if the price falls. He does not want to lose more than Rs1000 on this long position in XYZ. What should the trader do?

Trader A wants to sell 20 contracts of August series at Rs 4500 and Trader B wants to sell 17 contracts of September series at Rs 4550. Lot size is 50 for both these contracts. The Initial Margin is fixed at 6%. How much Initial Margin is required to be collected from both these investors (sum of initial margins of A and B) by the broker?

A member has two clients C1 and C2. C1 has purchased 800 contracts and C2 has sold 900 contracts in August XYZ futures series. What is the outstanding liability (open position) of the member towards Clearing Corporation in number of contracts?

A defaulting member's clients’ positions could be transferred to ____________ by the Clearing Corporation.

Clients' positions cannot be netted off against each other while calculating initial margin on the derivatives segment.

Mark-to-market margins are collected ___________.

Value-at-risk measures ___________.

A penalty or suspension of registration of a stock broker from derivatives exchange/segment under the SEBI (Stock Broker) Regulations, 1992 can take place if _______________.

Clearing corporation on a derivatives exchange becomes a legal counterparty to all trades and be responsible for guaranteeing settlement for all open positions.

Initial margin collection is monitored by the _________.

Liquid Assets maintained by Mr A (Clearing Member) are higher than that maintained by Mr B (Clearing Member). Which of the following statements is true?

On the Clearing Council of the Clearing Corporation of the derivatives segment, broker-members are allowed.

The main objective of Trade Guarantee Fund (TGF) at the exchanges is _________________.

Value-at-risk provides the ______________.

Who is eligible for clearing trades in index options?

If price of a futures contract decreases, the margin account of the buyer of this futures contract is debited for the loss.

When establishing a relationship with a new client, the trading member takes reasonable steps to assess the background, genuineness, beneficial identify, financial soundness of such person and his investment/trading objectives.

An index option is a __________________.