Quiz 03 - 18 Jan 2024

The process through which the clearing corporation becomes a counter party to each and every trade is called:

• Settlement.

• Value-at-risk.

• Novation.

• Demtualisation.

If a trader buys a call option then he is most likely to have:

• Negative Gamma.

• Negative Delta.

• Positive Rho.

• Negative Vega.

If the market is in backwardation, an arbitrageur can make profit by: 

• Buying equity and selling futures.

• Selling equity and selling futures.

• Buying equity and buying futures.

• Selling equity and buying futures.

The market wide position limit for a stock in the derivative segment is:

• 5% of free float shares.

• 20% of free float shares.

• 15% of free float shares.

• 50% of free float shares.

The Beta of the stock measures the:

• Sensitivity of stock returns w.r.t Index returns.

• Sensitivity of stock returns to its standard deviation of returns.

• Sensitivity of stock returns to its correlation.

• Sensitivity of stock returns to its covariance.

A call bull spread, most likely involves:

• Buying a lower strike call and selling an upper strike call

• Buying an upper strike call and selling a lower strike call.

• Buying this month call and selling next month call.

• Buying futures and selling OTM call.

A trader sells Nifty 20000PE@105 and also sells 22000CE@95. His maximum loss per lot of Nifty could be:

• Rs.10,000

• Rs. 5,000

• Rs.15,000

• Unlimited.

The FINNIFTY weekly expiry will take place on a:

• Monday

• Tuesday

• Wednesday

• Thursday

If Reliance Industries has a beta value of 1.2 and if Nifty corrects by 10%, then:

• Reliance Industries will rally by 12%.

• Reliance Industries will correct by 1.2%.

• Reliance Industries will correct by 12%.

• Reliance Industries will rally by 1.2%

In the NSE F & O segment, the mean quarter-order sigma size for stocks will not be less than: 

• INR 5 lakhs

• INR 25 lakhs

• INR 15 lakhs

• INR 10 lakhs