Derivatives Dealers(4)

Q1-Which of the following is true ?

1. An american option can be exercised on an american option exchange 
2. An american option can be exercised on the expiration date.
3. An american option can be exercised on before the expiration date
4. An american option can be exercised on or before the expiration date. 

Q2-Expiration date is the date on or before which the option must be exercised

1. True
2. False
3. true only on USA
4. True only on japan 

Q3-The black-scholes model is used for the pricing of

1. Index futures 
2. option 
3. Equity share
4. Corporate debt 

Q4-A stock option is example of a

1. Commodity
2. Derivative instrument
3. Money market instrument
4. Foreign exchange contract

Q5-Who can write the option ?

1. Only market makers 
2. Only FIIS 
3. Any person  whether he owns underlying stock or not 
4. Any person owing underlying stock 

Q6-Selling long on the stock means ....

1. Seller does not own the stock he is suppose to deliver 
2. seller has to deliver the stock after a long time 
3. seller owns the stock  he is suppose to deliver  
4. seller  has to deliver the stock along with interest 

Q7-Purchase of a call option has expectation that stock price will

1. Increase 
2. Decrease 
3. Remain constant
4. None of the above 

Q8-Exercise price of option are specified by-

1.  Government 
2. Company 
3. Market makers 
4. Exchange

Q9-If you have bought a future contract and price drops , you will be making a profit.

1. True 
2. False 
3. Sometimes true
4. Some times false

Q10-The greater the number of participants in any market , generally lower the liquidity .

1. True 
2. False
3. True only for the year 2002
4. True only for the year 2001

Derivatives Dealers(3)

Q1-The derivatives contracts  initially developed in...

1. Commodities 
2. Futures
3. Options 
4. Cash  

Q2-The derivatives drive their name from their respective underlying asset

1.  True 
2. False

 Q3-The first contract to be launched on NSE was the nifty 50 index futures contracts

1. True
2. False

Q4-When SEBI allows exchange to trade  in index future

1. May 25, 2000
2. June 20, 2000
3. May 25, 2001
4. July 29, 2010

Q5-Maximum  expiration time for derivatives contract in NSE is

1. 3 months 
2. 4 months 
3. 6 months 
4. 1 year

Q6-The S&P CNX NIFTY index covers 21 sectors of the Indian economy

1. True
2. False

Q7-Participants on a derivative market

1. Hedger
2. Speculator 
3. Arbitrageurs
4. All of them  

Q8-Who provide depth in the market

1. Hedger
2. Speculator
3. Arbitrager

Q9-In forward contracts , delivery date, price and quantity are negotiated 

1. True
2. False

Q10-In which contract price are not available in public domain.

1. Forward
2. Future
3. Options
4. Cash