Sample Questions

NCFM Derivatives Market (Dealers) Module Mock Test — 5 random MCQs with answers & explanations

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

Q1 Which options have "Intrinsic Value"?

  • A. Out-of-the-Money (OTM)
  • B. At-the-Money (ATM)
  • C. In-the-Money (ITM) Correct Answer
  • D. All of them
Explanation:
Only ITM options have real value if used immediately.

Marks: 1

Q2 A Trading Member without clearing rights:

  • A. Can clear own trades
  • B. Cannot clear trades directly Correct Answer
Explanation:
Such members must clear trades through a Clearing Member.

Marks: 1

Q3 For a SELLER, what is considered the "best" price?

  • A. The highest price Correct Answer
  • B. The lowest price
  • C. The price they paid
  • D. The closing price
Explanation:
Every seller wants to sell as high as possible.

Marks: 1

Q4 What is the STT rate on sale of index or stock futures?

  • A. 0.01%
  • B. 0.0125%
  • C. 0.02% Correct Answer
  • D. 0.1%
Explanation:
Securities Transaction Tax on sale of stock or index futures is 0.02% of transaction value.

Marks: 1

Q5 A put option is In-The-Money when:

  • A. Strike price is lower than market price
  • B. Strike price equals market price
  • C. Strike price is higher than market price Correct Answer
  • D. Strike price is zero
Explanation:
A put option is profitable when strike price is higher than current market price.

Marks: 1

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