Sample Questions
NISM-Series-5D: Mutual Fund - Specialized Investment Fund (SIF) Distributors — 5 random MCQs with answers & explanations
← Back to NISM-Series-5D: Mutual Fund - Specialized Investment Fund (SIF) DistributorsThese 5 questions are randomly selected (standard MCQs only, not case-based).
Q1 If stock price becomes highly volatile, option premium will generally be:
Explanation:
Higher volatility increases risk. Since options give protection against risk, their premium becomes higher.
Marks: 1
Q2 Vega measures change in Delta due to change in price of underlying asset.
Explanation:
Vega measures sensitivity of option price to volatility. Gamma measures change in Delta with respect to change in underlying price.
Marks: 1
Q3 In what year did the first "futures contract" get officially listed on an exchange in the USA?
Explanation:
While CBOT started in 1848, the first standardized "futures" contract was listed in 1865.
Marks: 1
Q4 Does an option BUYER usually need to pay margin?
Explanation:
Since their loss is capped at the premium, no further margin is needed.
Marks: 1
Q5 Buying a put option on a stock that you already own is called:
Explanation:
A protective put is used to protect existing shares from price fall. It works like insurance for your investment.
Marks: 1
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