Practice Set - 3 | Practice Set | NISM Series VIII: Equity Derivatives Certification Examination

Question 1

A trader exits a losing position early. This reduces:

Question 2

If exposure margin is reduced significantly, risk becomes:

Question 3

If clearing corporation uses SGF frequently, it indicates:

Question 4

Which event directly reduces credit risk exposure?

Question 5

If final settlement price differs significantly from previous MTM prices, it implies:

Question 6

If a trader's MTM losses exceed initial margin, what happens first?

Question 7

A trader avoids margin calls by closing positions early. This reduces:

Question 8

If clearing corporation faces extreme losses, which is affected?

Question 9

Which scenario leads to increase in credit risk?

Question 10

Which risk arises due to inability to meet obligations despite assets?

Question 11

Which margin is least affected by daily price movement?

Question 12

Which component absorbs losses before SGF is used?

Question 13

A trader profits daily but loses overall. This indicates:

Question 14

Which process ensures convergence of futures and spot prices?

Question 15

A trader maintains excess margin but faces loss. This shows:

Question 16

Which condition increases systemic stability?

Question 17

If MTM settlement is delayed, which risk increases?

Question 18

Which risk cannot be eliminated even with perfect clearing system?

Question 19

Which risk is minimized by margining system?

Question 20

A trader defaults despite sufficient margin. This indicates:

Question 21

If market remains stable, MTM margin:

Question 22

Which component acts as the last line of defense against default risk?

Question 23

Which margin component is most sensitive to sudden market shocks?

Question 24

Which scenario reflects operational risk?

Question 25

Which event causes immediate MTM adjustment?

Question 26

Which margin is most directly linked to volatility changes?

Question 27

A trader's MTM profit is not withdrawn. Risk still exists due to:

Question 28

A trader faces continuous margin calls. This reflects:

Question 29

Which situation can trigger systemic risk?

Question 30

Practice Set - 3