Sample Questions

NISM-Series-8: Equity Derivatives Mock Tests — 5 random MCQs with answers & explanations

← Back to NISM-Series-8: Equity Derivatives Mock Tests

These 5 questions are randomly selected (standard MCQs only, not case-based).

Q1 An "Immediate or Cancel" (IOC) order:

A. Stays in the system for a week
B. Must be filled instantly or it is deleted Correct Answer
C. Can only be used for buying
D. Is for long-term investors only

Explanation:

IOC is "now or never".

Marks: 1

Q2 What does "Cost of Carry" represent for an equity investor?

A. The cost of a taxi to the exchange
B. Interest paid to buy the stock minus dividends received Correct Answer
C. The brokerage fee
D. The price of the stock

Explanation:

It’s the net cost of holding the asset until the future delivery date.

Marks: 1

Q3 Nifty index futures on NSE expire on:

A. First Wednesday
B. First Thursday
C. Last Wednesday
D. Last Tuesday Correct Answer

Explanation:

Nifty 50 index futures on NSE expire on the last Tuesday of the expiry month, or on the previous trading day if the scheduled expiry day is a trading holiday.

Marks: 1

Q4 Buying a put option on a stock that you already own is called:

A. Straddle
B. Covered call
C. Calendar spread
D. Protective put Correct Answer

Explanation:

A protective put is used to protect existing shares from price fall. It works like insurance for your investment.

Marks: 1

Q5 Default risk is not applicable in exchange-traded derivatives because:

A. Broker guarantees
B. Government guarantees
C. Clearing Corporation guarantees settlement Correct Answer
D. Investor guarantees

Explanation:

Clearing Corporation ensures settlement, reducing counterparty risk.

Marks: 1

Start Mock Tests →

Explore More Mock Tests

Practice structured mock tests designed exactly like real NISM exams.

Browse All Subjects Start Free Test