Practice Set - 2 | Practice Set | NISM Series VIII: Equity Derivatives Certification Examination

Question 1

A trader experiences continuous MTM losses. Which risk is primarily being realized?

Question 2

Which margin remains relatively constant unless volatility changes significantly?

Question 3

Variation margin ensures:

Question 4

A trader exits position before expiry. Final settlement:

Question 5

Which margin fluctuates the most frequently?

Question 6

A trader holds position with zero MTM change daily. Which is true?

Question 7

A trader with sufficient margin still incurs loss due to price movement. This is:

Question 8

If both counterparties default simultaneously, settlement is ensured by:

Question 9

If clearing corporation did not exist, the most critical risk would be:

Question 10

If a trader has sufficient initial margin but fails to pay MTM losses, what is the likely outcome?

Question 11

Which situation creates maximum systemic risk?

Question 12

Which scenario increases exposure margin requirement?

Question 13

If volatility suddenly drops, exposure margin:

Question 14

Which component directly absorbs default losses before impacting other participants?

Question 15

Which scenario can exhaust initial margin quickly?

Question 16

A trader profits from MTM daily but fails at final settlement. This indicates:

Question 17

A trader gains MTM profit daily but ends with overall loss at expiry. This implies:

Question 18

Which sequence correctly reflects margin usage during default?

Question 19

Which risk remains even with clearing corporation presence?

Question 20

Practice Set - 2