NISM-Series-XVI: Commodity Derivatives Certification Examination

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In ________ system, goods were exchanged between two parties with matching and opposite needs.

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___________ are agreements between two counterparties to exchange a series of cash payments for a stated period of time based on a certain pre-agreed arrangement.

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_____________ refers to the process of determining commodity price through forces of market demand and supply.

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Arbitrage opportunities can exist between _____________.

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Which of the following macroeconomic factors have an impact on the commodity prices?

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Which of the following ratios are as per the regulatory requirements for production related weights and liquidity related weights while constructing index?

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Which of the following is correct statement?

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What is the lot size of index future trading?

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Which of the following is true?

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_____________ indicates the benefit of owning a commodity rather than buying an index futures contract on that commodity.

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If the cost of 10 grams of gold in the spot market is Rs 50,000 and the cost-of-carry is 12% per annum, the theoretical fair value of a 3-month futures contract would be _____________.

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With each passing day, the cost of carry of a futures contract __________.

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If futures price is higher than spot price of an underlying asset, it is called as ____________.

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Calculate the Total Cost of Carry, if the Spot price of a commodity is Rs 28000, Time period is 90 days, Interest rate is 7% and Storage cost is 2%.

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_____________ indicates the benefit of owning a commodity rather than buying a futures contract on that commodity.

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An option contract gives its buyer ____________ to exercise that option.

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__________ ‘options on goods’ give the option buyer zero or close to zero cash flow (ignoring upfront premium), if it were exercised immediately.

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The maximum potential gain for the seller of an option contract is ______________, till the expiry of the contract.

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If a commodity call option has a strike price of Rs 1000 and the current market price of the underlying commodity futures is Rs 1150 and the option premium is Rs 200, calculate its Time Value.

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Assuming all other factors remains constant, which of the following statement is TRUE regarding the relation between interest rates and option premium?

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An option on goods contract has following benefit against option on futures:

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Buyer of an “Options on Goods” contract will end up having zero or close to zero cash flow on exercise, if those option ends up as __________

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Commodity price and its Future price may turn negative due to technical, fundamental and speculative factors. Whether Option on Goods can be priced negative?

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Option on goods in a nutshell is: ______________.

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For Option on Futures and Option on Goods having the same terms and conditions, which statement is true?

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________ enters into the derivatives contract to mitigate the risk of adverse price fluctuation in her existing position.

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Selling a commodity futures contract, without any corresponding long positions in the spot market or without stocks in hand, in expectation of a decrease in price before the expiry of the contract is a ___________.

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In India, deep in the money commodity “call options on futures” on exercise gives the option buyer _________.

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________ is the risk that a commodity's futures price will move differently from that of its underlying physical commodity.

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A _________ is an option strategy where the trader buys a call and a put with the same strike price and same expiry date.

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A ___________ can trade either on its own account or on behalf of its clients.

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The margin money is released, _____________.

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Introduction of futures trading on new commodities, or withdrawal of futures trading on a specific commodity require the prior approval of ______________.

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A "limit order" is an order ___________.

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Time priority of an order WILL NOT change in which of the following order modification instances?

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Transactions involving transfer of ownership of commodities are settled on _____ basis.

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Option on Goods does not have _________ margin.

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Under the staggered delivery mechanism, the buyer who is randomly assigned a delivery obligation by the trading system of the exchange has to take the delivery from the delivery centre _______.

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________ refers to the cost associated with substituting the original trade with a new trade, as the new trade may generally be done at a different price and probably at an adverse price to the aggrieved party.

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For a new long futures position taken during the day, if the closing price at the end of the day is lower than his transaction price, ____________.

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Spot market trade in commodities particularly agriculture commodities fall under the jurisdiction of _______.

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The regulatory framework for commodity markets in India consists of three tiers. Which of the following is NOT one of them?

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________ gives SEBI the power to grant recognition to stock exchanges in India.

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As per the definition of securities under Securities Contract Regulation Act 1956, which of the following does not fall under the definition of “Securities”?

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Which of the following Acts are repealed?

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Which of the following can be used as a Hedging Instrument?

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Which of the following is a type of hedge from "accounting" point of view?

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ICAI's guidance note requires that all derivatives are recognized on the ______ and measured at fair value.

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___________ is a destination based tax on consumption of goods and services which is levied at all stages right from manufacture up to final consumption with credit of taxes paid at previous stages available as setoff.

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________ is levied and administered by the Centre on every inter-state supply of goods and services.

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Which of the following are the risks generally faced by the Commodity exporters?

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Investors can lodge complaints with SEBI and track the status of redressal of such complaints from anywhere using the online system of ______________.

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Which of the following is correct about Electronic Contract Note (ECN)?

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Which of these does not directly relate to KYC and anti-money laundering control procedures?

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Which of the following is NOT correct about Grievance Redressal Committee(GRC)?

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