Sample Questions
NISM-Series-16: Commodity Derivatives Mock Tests — 5 random MCQs with answers & explanations
← Back to NISM-Series-16: Commodity Derivatives Mock TestsThese 5 questions are randomly selected (standard MCQs only, not case-based).
Q1 Excluding benefits, what does the price gap between today’s price and the future price represent?
Explanation:
Theoretically, if you buy today and wait until the future, the price difference you pay is simply the cost of "carrying" or holding that item.
Marks: 1
Q2 Based on "Price-Time priority," which action will cause a delay in an order being executed?
Explanation:
If you lower the price you are willing to pay (Buy order), you move further back in the priority list, and the trade will only happen if the market price falls to that lower level.
Marks: 1
Q3 After a technical glitch occurs, how many days does a broker have to submit a "Root Cause Analysis" (RCA) report?
Explanation:
The broker has two weeks to investigate exactly what went wrong and tell the exchange how they will fix it so it doesn't happen again.
Marks: 1
Q4 Which of these changes in "basis" (Spot Price - Futures Price) represents a "weakening of basis"?
Explanation:
The "basis" is the difference between the spot and futures price. "Weakening" happens when the basis becomes less positive or more negative. Moving from +70 to +60 means the gap is shrinking in a way that is "weaker".
Marks: 1
Q5 What is the Delta value for an investor who has "sold" (is short) a Put option?
Explanation:
A Put option buyer has a negative Delta (they profit when prices fall). Since the seller's position is the exact opposite of the buyer's, the seller of a Put option has a positive Delta.
Marks: 1
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