Model Test Paper for BCDE

1. You sold a XYZ Stock put contract at Rs. 230 strike price for Rs. 28 each. The lot size is 1,200. On the expiry day, XYZ Stock closed at Rs. 276. What is your net profit (+) or loss (-)?
Ans 33600

2. Investor A wants to buy 11 contracts of August series and Investor B wants to buy 8 contracts of September series at 4,500 and 4,550 respectively (contract multiplier 50). The Initial Margin is fixed at 6% (computed based on Price Scan Range) by the Clearing Corporation. How much Initial Margin is required to be collected from both investors together by the broker?
Ans 148500

3. You sold a XYZ Stock Call contract at Rs. 230 strike price for Rs. 28 each. The lot size is 1,200. On the expiry day, XYZ Stock closed at Rs. 272. Your option was automatically exercised. What is your net profit (+) or loss (-)?
Ans -16800

4. If you sell a put option contract on a share with strike price of Rs. 245, market price
of Rs. 260 and a premium of Rs. 40, how much is the maximum gain that you may
have on expiry of this position?
Ans 40

5. In an Index Futures Contract, if the tick size is 0.01 of an index point and the index
multiple is Rs. 100, 'a tick' is valued
Ans 1

6. You sold a XYZ Stock put contract at Rs. 280 strike price for Rs. 28 each. The lot size is 1,200. On the expiry day, XYZ Stock closed at Rs. 241. Your option was automatically exercised. What is your net profit (+) or loss (-)?
Ans -13200

7. Current Price of XYZ Stock is Rs. 236. Rs. 260 strike put is quoted at Rs. 45. What is the Intrinsic Value?
Ans 24

8. Investor A wants to buy 10 contracts of August series and Investor B wants to buy 7 contracts of September series at 4,500 and 4,550 respectively (contract multiplier 50). The Initial Margin is fixed at 6% (computed based on Price Scan Range) by the Clearing Corporation. How much Initial Margin is required to be collected from both investors together by the broker?
Ans 230550

9. You sold a XYZ Stock put contract at Rs. 230 strike price for Rs. 28 each. The lot size is 1,200. On the expiry day, XYZ Stock closed at Rs. 265. What is your net profit (+) or loss (-)?
Ans 33600

10. You sold a XYZ Stock put contract at Rs. 280 strike price for Rs. 28 each. The lot size is 1,200. On the expiry day, XYZ Stock closed at Rs. 242. Your option was automatically exercised. What is your net profit (+) or loss (-)?
Ans -12000

11. You sold one XYZ Stock Futures contract Rs. 248 and the lot size is 1,200. What is your profit (+) or loss (-), if you purchase the contract back at Rs. 251?
Ans -3600

12. You sold one XYZ Stock Futures contract Rs. 278 and the lot size is 1,200. What is your profit (+) or loss (-), if you purchase the contract back at Rs. 270?
Ans 9600

13. You bought a January XYZ Stock Futures contract at Rs. 268 and the lot size is 1,200. What is your profit (+) or loss (-), if you square off your position at at Rs. 283?
Ans 18000

14. You have sold a XYZ Stock Call contract, strike price Rs. 250 at a premium of Rs. 50. Lot size is 1,200. What is your profit (+) or loss (-), if you purchase the Call back at Rs. 26?
Ans 28800

15. You have taken a short position of one contract in June XYZ futures (contract
multiplier 50) at a price of Rs. 3,200. You desire to make a profit of Rs. 10,000. Which of the following actions will enable you to generate desired profit? You may ignore
brokerage costs
Ans Buying 1 June XYZ futures contract at 3000

16. Beta of more than 1 means
Ans the expected percentage change in stock price will be more than the % change in Index

17. You bought a January XYZ Stock Futures contract at Rs. 268 and the lot size is 1,200. What is your profit (+) or loss (-), if you square off your position at at Rs 290?
Ans 26400

18. You bought a XYZ Stock Put contract at Rs. 240 strike price for Rs. 25 each. The lot size is 1,200. On the expiry day, XYZ Stock closed at Rs. 315. What is your net profit (+) or loss (-)?
Ans -30000

19. You bought a XYZ Stock Put contract at Rs. 280 strike price for Rs. 27 each. The lot size is 1,200. On the expiry day, XYZ Stock closed at Rs. 223. Your option was automatically exercised. What is your net profit (+) or loss (-)?
Ans 36000

20. You bought a XYZ Stock Call contract at Rs. 280 strike price for Rs. 23 each. The lot size is 1,200. On the expiry day, XYZ Stock closed at Rs. 222. What is your net profit (+) or loss (-)?
Ans -27600

21. What are the eligible Liquid Assets, if a clearing member has deposited total assets of Rs. 850 Lakhs of which Rs. 500 Lakhs is by way of acceptable equity securities after considering the applicable hair-cuts in valuation of equity securities?
Ans 700

22. What are the eligible Liquid Assets, if a clearing member has deposited total assets of Rs. 900 Lakhs of which Rs. 500 Lakhs is in cash equivalents viz. Cash, bank guarantee, fixed deposits, T-bills and dated government securities?
Ans 900

23. What are the eligible Liquid Assets, if a clearing member has deposited total assets of Rs. 950 Lakhs of which Rs. 560 Lakhs is by way of acceptable equity securities
after considering the applicable hair-cuts in valuation of equity securities?
Ans 780

24. What can be the maximum percentage of cash and cash equivalents in liquid assets deposited by clearing members with the Clearing Corporation?
Ans 1

25. What should be the minimum percentage of non-cash and non-cash equivalents (i.e. equity shares) in liquid assets deposited by clearing members with the Clearing
Corporation?
Ans 0

26. Which of the following is closest to the forward price of a share, if Cash Price = Rs.
1200, Forward Contract Maturity = 6 months from date, Market Interest rate = 12%?
Ans 1272

27. A trader puts a market order for 100 shares of XYZ stock, executed at Rs. 780. He expects scrip price to move upward but wants to protect himself from downward
movement of the scrip. He doesn't want to lose more than Rs. 1000, if rate falls. For that he will,
Ans place a stop loss sell order for 100 XYZ stock @ 770/-.

28. You sold a XYZ Stock Call contract at Rs. 230 strike price for Rs. 28 each. The lot size is 1,200. On the expiry day, XYZ Stock closed at Rs. 283. Your option was automatically exercised. What is your net profit (+) or loss (-)?
Ans -30,000

29. A short position on futures contracts can be squared up by
Ans executing a purchase of futures contracts

30. You sold a XYZ Stock put contract at Rs. 230 strike price for Rs. 28 each. The lot size is 1,200. On the expiry day, XYZ Stock closed at Rs. 262. What is your net profit (+) or loss (-)?
Ans 33600

31. Short selling strategy is mostly used by the :
Ans Spectators

32. You sold one XYZ Stock Futures contract Rs. 278 and the lot size is 1,200. What is your profit (+) or loss (-), if you purchase the contract back at Rs. 271?
Ans 8400

33. You have sold a XYZ Stock Put contract, strike price Rs. 220 at a premium of Rs. 48. Lot size is 1,200. What is your profit (+) or loss (-), if you buy the Put back at Rs. 36?
Ans 1000000

34. You have sold a XYZ Stock Call contract, strike price Rs. 250 at a premium of Rs. 50. Lot size is 1,200. What is your profit (+) or loss (-), if you purchase the Call back at Rs. 41?
Ans 14400

35. You own 10,000 shares of ABC at price of Rs. 110. The stock has a beta of 1. You wish to create a perfect hedge by selling stock index futures. What should be the value of stock index futures that you should sell?
Ans 1100000

36. You sold a XYZ Stock Call contract at Rs 280 strike price for Rs 28 each. The lot size is 1,200. On the expiry day, XYZ Stock closed at Rs 224. What is your net profit (+) or loss (-)?
Ans 33600

37. You sold a XYZ Stock Call contract at Rs. 230 strike price for Rs. 28 each. The lot size is 1,200. On the expiry day, XYZ Stock closed at Rs. 260. Your option was automatically exercised. What is your net profit (+) or loss (-)?
Ans -2400

38. You sold one XYZ Stock Futures contract Rs. 248 and the lot size is 1,200. What is your profit (+) or loss (-), if you purchase the contract back at Rs. 269?
Ans -25200

39. You sold one XYZ Stock Futures contract Rs. 278 and the lot size is 1,200. What is your profit (+) or loss (-), if you purchase the contract back at Rs. 263?
Ans 18000

40. What are the eligible Liquid Assets, if a clearing member has deposited total assets of Rs. 1000 Lakhs of which Rs. 590 Lakhs is by way of acceptable equity securities
after considering the applicable hair-cuts in valuation of equity securities?
Ans 820