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

Question 1

If a trader holds a short futures position and the market price rises, the trader will:

Question 2

A trader borrows money at 8% to buy a stock and expects a dividend yield of 3%. What is the net cost of carry?

Question 3

A trader's open position consists of long 10 contracts and short 4 contracts of same asset. Net position is:

Question 4

If both open interest and volume decline simultaneously, it suggests:

Question 5

If a trader replaces an existing position with another trader without closing contracts, open interest will:

Question 6

Which position benefits from falling prices?

Question 7

If cost of carry increases while all other factors remain constant, the futures price will:

Question 8

Which factor can cause variation in basis across different maturities?

Question 9

If futures price is lower than spot price, the market condition is:

Question 10

Which scenario indicates strong market liquidity?

Question 11

If a trader holds only futures without underlying asset, it is called:

Question 12

Which of the following best explains why initial margin is required from both buyer and seller?

Question 13

Which of the following best explains daily settlement in futures markets?

Question 14

If a trader squares off a position, open interest will:

Question 15

A calendar spread involves taking positions:

Question 16

In a futures contract, if daily MTM losses are not paid, what is the likely consequence?

Question 17

If the spot price of an asset is ₹500 and the futures price is ₹520, what can be inferred about the basis?

Question 18

A trader observes that basis is converging towards zero as expiry approaches. What does this imply?

Question 19

If price band is 10% and previous closing price is ₹200, the upper limit is:

Question 20

Which scenario would result in a positive basis?

Question 21

Which of the following will NOT directly affect open interest?

Question 22

Which of the following is true about futures contracts at expiry?

Question 23

A futures contract shows increasing open interest along with rising prices. What does this indicate?

Question 24

Which of the following factors most directly affects cost of carry in equity futures?

Question 25

Practice Set - 2