nism equity derivatives mock test - Quiz Questions (Page 1 of 2)
This quiz contains 20 questions.
Question 1: What is the underlying asset in a stock option?
- Stock (Correct Answer)
- Bond
- Commodity
- Currency
Question 2: Which document is essential for understanding the terms of a derivative contract?
- Prospectus
- Option schedule
- Contract specifications (Correct Answer)
- Market report
Question 3: What is the purpose of a margin call?
- To settle dividends
- To cover potential loss (Correct Answer)
- To increase account funds
- To acquire more stocks
Question 4: How can a trader minimize risk in options trading?
- By diversification (Correct Answer)
- By leveraging
- By speculation
- By doubling positions
Question 5: What does 'strike price' refer to in options trading?
- Option expiration date
- Price of underlying asset
- Price agreed in contract (Correct Answer)
- Broker's commission
Question 6: Which body regulates equity derivatives in India?
- NSE
- SEBI (Correct Answer)
- BSE
- RBI
Question 7: What happens if an option expires 'in the money'?
- Expires worthless
- Traded automatically
- Exercise option (Correct Answer)
- Converted to bond
Question 8: How is the term 'hedging' best defined?
- Maximizing profits
- Covering risk (Correct Answer)
- Speculating market
- Increasing leverage
Question 9: Which strategy involves buying a call and put simultaneously?
- Butterfly
- Iron Condor
- Straddle (Correct Answer)
- Spread
Question 10: Which is an example of a derivative contract?
- Bond
- Stock
- Option (Correct Answer)
- Exchange
Boost your exam preparations with our NISM Equity Derivatives mock test. This practice quiz covers key topics like market rules, trading strategies, risk management, and the regulatory framework. It is designed for candidates aiming for the NISM Series VIII certification in India. Try the test and start feeling exam-ready today.
