Q1. An investor buys a 1 lot of Nifty futures at Rs. 4927 and sells it at Rs. 4567 If one
contract is 50 shares what is the Profit/ Loss in the transaction?
- Profit Rs. 18000
- Loss Rs. 22000
- Loss Rs. 18000
- Profit Rs. 22000
Q2. When the strike price is lower than the spot price of the underlying, a call option will be
____.
- At the money
- Out of the money
- In the money
- American Type
Q3. As more and more ____ trades take place, the difference between spot and futures prices
would narrow.
- arbitrage
- delta
- speculative
- hedge
Q4. In a business daily to get information about the top gainers in the futures market, one has
to look in the heading :
- Open Interest
- Positive trend
- Negative trend
- Contract details
Q5. Which of the following is NOT a hedge for a long position in an underlying stock?
- Sell put option
- Sell call option
- Sell futures
- Buy Put option
Q6. TCS is trading at Rs. 420 in the spot market and Rs. 435 in the futures market. Is there
an arbitrage opportunity? The Futures contract is settling today.
- Yes
- Depends on Market Sentiment
- No
Q7. All Stock Options are American in nature.
- FALSE
- TRUE
Q8. On 1st January, SBI is trading at Rs. 2310. An investor is bullish on the company because
of the earnings of last quarter and buys a SBI futures at Rs. 2310. He sells SBI futures at Rs.
2335. What is the Profit / Loss for the investor if 1 lot of SBI is 250 shares?
- Rs. -6250
- Rs. 6250
- Rs. 0
- Rs. -10000
Q9. In India, all Options traded on Nifty are :
- European options
- Asian Options
- American options
- Continental Options
Q10. Reliance is trading at Rs. 1520 in the cash market. What should be the fair price of
Reliance futures expiring 90 days from today. Risk free rate is 8% p.a.
- 1563
- 1529
- 1551
- 1537
