NISM Equity Derivatives Quiz -

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NISM Equity Derivatives

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1 / 10

Q1. What is a derivative?

A. A fixed income security

B. A mutual fund product

C. A financial instrument whose value is derived from an underlying asset

D. A loan instrument

2 / 10

Q2. Which of the following is not an example of a derivative?

A. Futures

B. Options

C. Bonds

D. Forwards

3 / 10

Q3. In a futures contract, the buyer has:

A. The right but not the obligation to buy

B. No obligations at all

C. An obligation to buy the underlying asset at maturity

D. An obligation to sell the asset

4 / 10

Q4. A call option gives the buyer the:

A. Right to sell the underlying asset

B. Obligation to sell at strike price

C. Right to buy the underlying asset at the strike price

D. Obligation to buy on expiry

5 / 10

Q5. Which of the following is a hedging strategy in derivatives?

A. Naked call writing

B. Buying put options to protect portfolio

C. Speculative futures trading

D. Taking arbitrage positions

6 / 10

Q6. What is the lot size in the equity derivatives market?

A. The minimum number of shares in one derivative contract

B. The maximum number of shares allowed in cash market

C. The number of shares you can trade in intraday

D. Price per share

7 / 10

Q7. The expiry of stock futures contracts happens on:

A. Last Friday of every month

B. 15th of each month

C. Last Thursday of the contract month

D. First Monday of the month

8 / 10

Q8. What is ‘mark-to-market’ (MTM) in futures trading?

A. Profit or loss settled at the end of the month

B. Closing the contract automatically

C. Daily profit or loss settlement based on closing price

D. Premium paid on options

9 / 10

Q9. Who decides the margin requirement in equity derivatives?

A. SEBI

B. Stockbroker

C. Clearing Corporation / Exchange

D. RBI

10 / 10

Q10. What is intrinsic value of an option?

A. The option premium paid

B. The strike price of the option

C. The difference between spot price and strike price (if in-the-money)

D. Brokerage on options

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