Practice Set - 4 | Practice Set | NISM Series VIII: Equity Derivatives Certification Examination

Question 1

If the spot price is ₹800 and the futures price is ₹840, what is the basis?

Question 2

If a trader replaces another trader without closing contract, it is called:

Question 3

If market volatility increases, initial margin requirements will:

Question 4

If a trader holds equal long and short positions in the same contract, the net position is:

Question 5

If futures price is significantly higher than theoretical price, arbitrageurs will:

Question 6

A trader observes that futures prices are consistently below spot prices across maturities. This condition indicates:

Question 7

Which of the following factors will most likely reduce cost of carry?

Question 8

If futures price equals spot price before expiry, it may indicate:

Question 9

A trader holds long futures and receives dividend from underlying asset. This will:

Question 10

Which condition would lead to widening of basis?

Question 11

Which of the following best explains futures pricing model?

Question 12

Which of the following is NOT included in cost of carry?

Question 13

If open interest increases while prices fall, it indicates:

Question 14

If a trader closes a short position by buying back contracts, the open interest will:

Question 15

If cost of carry becomes negative, the futures price is likely to be:

Question 16

Which factor determines price band limits?

Question 17

Which scenario results in maximum impact on futures price?

Question 18

Which position gains maximum when prices fall sharply?

Question 19

If basis becomes zero before expiry, it indicates:

Question 20

Which of the following situations will NOT change open interest?

Question 21

Which of the following best describes convergence risk?

Question 22

Which of the following scenarios results in no net open position?

Question 23

Which factor contributes most to differences in basis across contracts of different maturities?

Question 24

If both buyer and seller enter new contracts, open interest will:

Question 25

Which of the following is true about MTM settlement?

Question 26

A trader experiences daily MTM losses exceeding margin. What is the immediate implication?

Question 27

Which scenario best reflects arbitrage ensuring convergence of futures and spot prices?

Question 28

A trader enters a calendar spread by buying near-month and selling far-month contracts. This strategy primarily profits from:

Question 29

If interest rates fall while dividends remain constant, futures price will:

Question 30

Practice Set - 4