nism equity derivatives mock test - Quiz Questions (Page 2 of 2)
This quiz contains 20 questions.
Question 11: What does 'volatility' measure in a market?
- Price stability
- Price change rate (Correct Answer)
- Market liquidity
- Profitability
Question 12: What kind of position benefits from a price drop in the underlying asset?
- Long
- Short (Correct Answer)
- Neutral
- Arbitrage
Question 13: Which of these is commonly used to assess derivative pricing?
- Black-Scholes model (Correct Answer)
- Moving average
- Candlestick patterns
- Elliott wave theory
Question 14: What is a 'covered call' strategy?
- Owning call without shares
- Selling call with shares (Correct Answer)
- Buying call with put
- Leverage without asset
Question 15: Who can exercise an American option?
- Seller only
- Buyer anytime (Correct Answer)
- Neither parties
- Only at expiry
Question 16: What is the significance of 'Delta' in options trading?
- Measures gas demand
- Measures option expired
- Rate of change in premium (Correct Answer)
- Change of option expiry
Question 17: What is the expiration date of a derivative?
- End of trade day
- Last valid exercise day (Correct Answer)
- First trading day
- Holiday due
Question 18: What does the 'futures price' represent?
- Spot price at expiry
- Expected future spot price (Correct Answer)
- Historical average price
- Fixed transaction cost
Question 19: Which is a basic assumption of technical analysis?
- Markets are efficient
- Price reflects all (Correct Answer)
- Prices follow random walk
- Markets always overreact
Question 20: How does a 'put option' benefit the holder?
- Profits from price rise
- Hedge against dividends
- Profits from price fall (Correct Answer)
- Fine from exercise
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.
