Sample Questions
NISM-Series-1: Currency Derivatives Mock Tests — 5 random MCQs with answers & explanations
← Back to NISM-Series-1: Currency Derivatives Mock TestsThese 5 questions are randomly selected (standard MCQs only, not case-based).
Q1 If an individual in India buys gold coins as an investment, which price risks are they facing?
Explanation:
Gold prices in India depend on both international gold rates (USD/GOLD) and the value of the Rupee (USD/INR).
Marks: 1
Q2 Margins for various clients of a single member are collected on a netted off basis.
Explanation:
Margins are calculated per individual client. A member cannot net positions across different clients to reduce margin requirements.
Marks: 1
Q3 Who determines the format of the contract note that a broker must issue to their client?
Explanation:
Brokers are required to issue contract notes in the specific form specified by the Stock Exchanges.
Marks: 1
Q4 An importer buys 20 lots of USDINR at 53. If the settlement price at expiry is 54.3, what is their total profit or loss?
Explanation:
The profit per USD is 1.30 (54.3 - 53). Total profit = 1.30 x 20 lots x 1000 (lot size) = 26,000.
Marks: 1
Q5 Who has "unlimited risk" in an option contract?
Explanation:
The seller takes the premium and promises to fulfill the trade. If the market moves a lot, they could lose a very large amount of money.
Marks: 1
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