Derivatives Dealers 13

Q1.Which of the following cannot be an underlying asset for financial derivative contract?

1. Equity index
2. interest rate
3. commodities 
4. foreign exchange

Q2. in an option contracts, the option lies with the . . . .

1. buyer 
2. seller 
3. both
4. exchange 

Q3. the potential returns on a future positions are 

1. limited 
2. unlimited 
3. a function of the volatility of the index 
4. none of the above

Q4. The maximum brokerage chargeable by trading member in relation to trades effected in the contracts on the f&o segment of the nse  is fixed at . . .  of the contract value, exclusive of satutory levies.

1. 1.5%
2. 2.0%
3. 1%
4. 2.5%

Q5. The best buy order for a given future contracts is the order to buy the index at the . . . . . .

1. highest price
2. lowest price
3. average of the highest and lowest price 
4. none of the above 

Q6. SPAN is a . . . . .based margining  system

1. portfolio 
2. options
3. futures
4. derivatives 

Q7. The regulatory framework for the derivative market in india has been developed by  the . . . .

1. L.C.Gupta committee
2. A.C.Gupta committee
3. J.R.Verma committee 
4. None of the above

Q8. The clearing member has to maintain a minimum liquid networth of . . . .

1. 35 Lakh
2. 80 Lakh
3. 50 Lakh 
4. 20 Lakh

Q9. The daily settlement price for index futures shall be decided by

1. SEBI
2. the Reserve Bank of India
3. the Clearing Corporation / house
4. None of the above

Q10. You bought January Satyam Futures @ Rs 268 and the lot size is 1,200. What is your profit (+)or loss(-) if you sell at Rs 225 ?

1.  -50,600
2. -51,600
3. -52,600
4. None of these