Sample Questions
NCFM Derivatives Market (Dealers) Module Mock Test — 5 random MCQs with answers & explanations
← Back to NCFM Derivatives Market (Dealers) Module Mock TestThese 5 questions are randomly selected (standard MCQs only, not case-based).
Q1 Identify the correct statement about a Put option.
Explanation:
A Put option gives the buyer the right (not obligation) to sell the underlying asset at a fixed strike price.
Marks: 1
Q2 If a person is short a futures contract at Rs. 100 and the underlying price at expiry is Rs. 60, what is the payoff per unit?
Explanation:
The seller is obligated to sell at 100. If the market price is 60, they can buy at 60 and sell at 100, gaining the difference (100 - 60).
Marks: 1
Q3 Mr. Gautam sold a put option with strike Rs.650 and received Rs.60 premium. What is his maximum profit per share?
Explanation:
The maximum gain for option seller is the premium received. Here, maximum profit is Rs.60 per share.
Marks: 1
Q4 Options contracts have which two types of settlements?
Explanation:
Options involve daily premium settlement and final settlement at expiry. Premium is paid upfront and final settlement happens on expiry date.
Marks: 1
Q5 Meghna sells 34 ABC futures contracts at ₹2450. Lot size is 50 and initial margin is 7%. What is the initial margin payable?
Explanation:
Total contract value = 2450 × 34 × 50 = ₹41,65,000. Margin = 7% of ₹41,65,000 = ₹2,91,550. Initial margin is calculated on total contract value.
Marks: 1
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