WorksheetsFMS PGDM BATCH 23-25 Division C T2
Total questions: 20
Worksheet time: 40mins
Financial derivatives include
Forwards
Options
Futures
All of the above
A contract that requires the investor to buy securities on a future date is called a
short contract
long contract
hedge
cross
The advantage of forward contracts over future contracts is that they
are standardized
have lower default risk
are more liquid
none of the above
The number of futures contracts outstanding is called
liquidity
volume
float
open interest
Futures differ from forwards because they are
used to hedge portfolios
used to hedge individual securities
used in both financial and foreign exchange markets
a standardized contract
Options are contracts that give the purchasers the
option to buy or sell an underlying asset
the obligation to buy or sell an underlying asset
the right to hold an underlying asset
the right to switch payment streams
A put option gives the seller
the right to sell the underlying security
the obligation to sell the underlying security
the right to buy the underlying security
the obligation to buy the underlying security
If you buy a put option on treasury futures at 110, and at expiration the market price is 115,
the call will be exercised
the put will be exercised
the call will not be exercised
the put will not be exercised.
Options on individual stocks are referred to as
stock options
futures options
American options
individual options
An option allowing the owner to sell an asset at a future date is a
put option
call option
swap
forward contract
NAV in mutual funds stand for
Net Asset Value
Net Assessment value
Net Amortization value
Net Advance value
What is the maximum period for which New Fund Offer (NFO) can remain open in market?
45 days
30 days
15 days
10 days
Which color code represents lowest level of risk in a mutual fund scheme?
Blue
Green
Yellow
Brown
Which one of the following is not the characteristics of mutual funds?
Consistent Investment process
Strong fund management
Diversity in interest rates
Differences from the benchmark
Which among the following is NOT a correct statement?
Hedge funds are not mutual funds
Hedge funds can be sold to public
Investors in mutual funds must pay various fees and expenses
Mutual funds provide economies of scale to investment decisions
Horse racing, card games, and the lottery are all instances of ___.
Investing
Gambling
Speculating
Arbitrage
Liquid funds are the funds that invest in securities with a maturity period of upto __ days
366
31
91
121
The NAV of mutual fund scheme must by mutual fund on ___basis
Daily
Weekly
Monthly
Yearly
Fund of funds (FoF) mutual funds invests in _________
Equities
Corporate Bonds
G-Sec
Other Mutual Funds
The functions and responsibilities of the sponsor, AMC, trustees, and custodian of the mutual fund are listed in
offer document only
key information memorandum
both offer document and key information memorandum
none of the above
