Practice Set - 2 | Practice Set | NISM Series XVI: Commodity Derivatives Certification Examination

Question 1

If margin requirement increases suddenly, it may lead to:

Question 2

If a trader fails to meet margin call, exchange may:

Question 3

A trader expects price fall but buys futures. Outcome if prediction is correct:

Question 4

A trader sells futures and prices increase continuously. What is the impact?

Question 5

Which condition creates arbitrage opportunity?

Question 6

A hedger takes a position in futures but basis risk exists. This means:

Question 7

A trader holds a long futures position and the price falls sharply. However, he does not square off the position. What is the immediate impact?

Question 8

A sudden drop in open interest with high volume indicates:

Question 9

A trader gains ₹1000 in MTM one day and loses ₹1000 next day. Net impact is:

Question 10

Which condition indicates short covering?

Question 11

Which of the following increases volatility in futures market?

Question 12

Which position benefits from narrowing basis?

Question 13

If futures price is significantly higher than spot price close to expiry, what is most likely to happen?

Question 14

Which situation represents perfect hedge?

Question 15

A trader rolls over position from near month to next month. This implies:

Question 16

A trader uses leverage of 10x. A 5% adverse move will result in approximately:

Question 17

Which scenario reflects high market liquidity?

Question 18

If futures price equals spot price before expiry, it implies:

Question 19

If carrying cost increases, futures price will:

Question 20

Which factor can cause futures price to deviate from theoretical value?

Question 21

Which trader is most exposed to margin calls?

Question 22

If basis narrows over time, it suggests:

Question 23

Which scenario leads to margin call?

Question 24

If open interest increases along with price increase, it indicates:

Question 25

Practice Set - 2