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NCFM Commodity Derivatives Mock Test

This document provides a mock test for the NCFM Commodity Derivatives exam with 20 multiple choice questions covering topics like options, futures, forwards, and derivatives. It also advertises video lessons, question banks, and mock tests available on the SimplyPaisa website to help prepare for exams in capital markets, equity derivatives, mutual funds, and other financial certifications. Visitors can access more practice materials and full courses on various finance topics at http://www.simplypaisa.com/academy/.

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1K views

NCFM Commodity Derivatives Mock Test

This document provides a mock test for the NCFM Commodity Derivatives exam with 20 multiple choice questions covering topics like options, futures, forwards, and derivatives. It also advertises video lessons, question banks, and mock tests available on the SimplyPaisa website to help prepare for exams in capital markets, equity derivatives, mutual funds, and other financial certifications. Visitors can access more practice materials and full courses on various finance topics at http://www.simplypaisa.com/academy/.

Uploaded by

simplypaisa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Free Mock Test
for
NCFM Commodity Derivatives
Also available Video lessons, Question Bank and Mock Test for NCFM
exam preparation for Commodity Derivatives exam

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The value of a put option is positively related to all of the


following EXCEPT:
A. Exercise price
B. Risk-free rate
C. Time to maturity
D. Spot price
E. I am not attempting this question
ANSWER: B

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When the strike price is lower than the spot price of the
underlying, a call option will be_____.
A. At the money
B. Out of the money
C. In the money
D. American Type
E. I am not attempting this question
ANSWER: C

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Which of the following is NOT a hedge for a long position in an


underlying stock?
A. Sell put option
B. Sell call option
C. Sell futures
D. Buy Put option
E. I am not attempting this question
ANSWER: A

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Which of the following is true?


A. European options can be exercised anytime before the
expiration date
B. European options can be exercised on or before the
expiration date
C. European options must be exercised on the expiration date
D. European options can be exercised only on the expiration
date
E. I am not attempting this question
ANSWER: D
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A forward contract is an agreement to enter into a contract at a


pre-specified future date.
A. TRUE
B. FALSE
C. Partially true
D. Insufficient information
E. I am not attempting this question
ANSWER: B

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An exchange traded futures contract is similar to an OTC (over


the counter) derivative. Some common features are :
A. Both are tailored (e.g. non-standardized instruments)
B. Both require margin collection by a clearing house
C. Both are exposed to credit-risk i.e. risk of non-performance by
counter party
D. None of the above
E. I am not attempting this question
ANSWER: D

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An Over The Counter option


A. is a standardized contract traded on an Exchange
B. is a contract tailored to suit individual requirements
C. is an option on stocks of pharmaceutical companies
D. can be bought from any option writer
E. I am not attempting this question
ANSWER: B

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Daily mark-to-market margin payments arise on adverse


positions resulting from price movements in futures.
A. TRUE
B. FALSE
C. Partially true
D. Insufficient information
E. I am not attempting this question
ANSWER: A

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Derivatives are highly leveraged, which implies that


A. You can take a higher position with smaller investments using
derivatives
B. You can take a lower position with higher investments using
derivatives
C. You can take a higher position if you buy the underlying
assets instead of buying derivatives
D. You should buy the underlying assets as you might make
more profit on them rather than derivatives
E. I am not attempting this question
ANSWER: A
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Each forward contract


A. can be structured as required by the buyer and seller
B. will have the same specifications
C. specifications are decided by the RBI
D. None of the above .
E. I am not attempting this question
ANSWER: A

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Capital Markets Question Bank
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