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

Question 1

A trader holds a short futures position and market falls. The trader:

Question 2

Which factor does NOT influence futures pricing?

Question 3

Which scenario best represents backwardation?

Question 4

Which of the following is a key limitation of forward contracts?

Question 5

If both buyer and seller close their positions simultaneously, open interest will:

Question 6

A trader notices futures price consistently above spot price. This condition is called:

Question 7

Which of the following would lead to no change in open interest?

Question 8

Which of the following best explains why futures prices converge to spot prices at expiry?

Question 9

Which factor determines the initial margin amount?

Question 10

If a trader fails to maintain required margin, what happens?

Question 11

If interest rates rise significantly while dividends remain constant, futures prices will:

Question 12

Which of the following best explains price band usage?

Question 13

A trader holds a long futures position. Market rises sharply. The trader:

Question 14

A trader's MTM account shows daily profits. What happens to this profit?

Question 15

Which of the following best describes open position?

Question 16

Which of the following scenarios increases open interest?

Question 17

If the spot price is ₹1000 and futures price is ₹970, what is the basis?

Question 18

Which position involves buying near-month contract and selling far-month contract?

Question 19

Which of the following is true regarding margin requirements?

Question 20

Practice Set - 3