Futures and Options Quiz – Level 4

This simple quiz might take 10 Mins to complete to test your basic understanding of stock trading instruments such as equity, futures, and options. This can be taken by any individual who is new to derivatives. The Results will be sent to your Email ID after successful completion.

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Quiz - Basics of Trading Instruments (Equity, Futures and Options (Level 4)

Equity Share:*

Choose the most appropriate answer

Is a part of ownership of the company

Is the contract between the Buyer and Sellers

Is the contractual agreement between the Company and Share holder.

Which of the following statements are False?

Multiple option questions

Share Bought on Trading Day will be credited to your Demat account on T+2 day

The Amount will be debited (Taken out) from your account on same day of trading.

Equity share holder can get a refund from the company.

Share bought on a day can be sold on the same day.

Quiz - Basics of Trading Instruments (Equity, Futures and Options (Level 4)

Equity Share holder is eligible:

Multiple Option Questions

To Get Dividend, if declared

To Get Bonus, if declared

To Claim Interest on Investment

Yearly Dividend

Share Bought and Sold on same day is considered as:

Choose the correct answer

Intraday Trading

Positional Trading

Investments

Quiz - Basics of Trading Instruments (Equity, Futures and Options (Level 4)

Can a trader sell stocks, even without holding an equity share in their account?

Choose the most appropriate answer

Yes, It is called as short Position

No – Not allowed in NSE

Yes, we can create short position but need to be bought back before 3:30 PM

What happens if, Short Positions in Equity Shares remain open after 3:30PM?

Choose the correct answer

Exchange will do the settlement process by choosing auction markets

Penalty will be imposed to the trader

Any excess charges paid by exchange to buy the stock should to passed on to Traders account

All of the above

Quiz - Basics of Trading Instruments (Equity, Futures and Options (Level 4)

What are Derivatives?

Choose the most appropriate answer

It is the different form share capital

It is the contract between Buyer and seller. The value derived from its underlying assets

What is a Futures Contract?

Choose the correct answer

It is a Derivative contract

The futures price is agreed between the buyer and seller for the predetermined future date.

Both Buyer and Seller have rights and obligations

All of the above

Quiz - Basics of Trading Instruments (Equity, Futures and Options (Level 4)

Which one of the below statement is not true for Forward contracts

Choose the most appropriate answer

They are not regulated

No Intermediate Person

Not customizable

Involve counterpart risk

All of the above

Buyer need to pay ______________ while buying the future contract

Choose the correct answer

Non Refundable - Margin

Refundable margin

Premium

Quiz - Basics of Trading Instruments (Equity, Futures and Options (Level 4)

Who decides the Future Contract Price?

Choose the most appropriate answer

It is the agreed price between the Buyer and seller of the contract

It is the calculated price by exchange

None of the above

Who decides the Expiry Date, Lot Size, and Margin?

Choose the correct answer

SEBI

Broker

The Stock Exchanges

Trader

Quiz - Basics of Trading Instruments (Equity, Futures and Options (Level 4)

When do future contract buyers benefit because of a contract?*

Choose the most appropriate answer

Positive Price action

Negative Price action

What is MTM?*

Choose the correct answer

Difference between Buying Price and selling price of the contract

Difference between the Market price and Agreed price, adjusted on day to day basis

Quiz - Basics of Trading Instruments (Equity, Futures and Options (Level 4)

What are option contracts?*

Choose the most appropriate answer

Buyers and seller get rights, but there are no obligations

Buyer of contract get rights, but there are no obligations

Seller of contract get rights, but there are no obligations

What is a Call Option?

Choose the correct answer

The Buyer gets the right to buy, but there are no obligations

The Seller gets the right to buy, but there are no obligations

Quiz - Basics of Trading Instruments (Equity, Futures and Options (Level 4)

Which of the following statements is correct with respect to option contact?

Choose the most appropriate answer

Buyer gets unlimited profit and seller loss is limited due to the premium he receives

Buyer gets unlimited profit and buyer loss is limited due to the premium he pays

Seller gets unlimited profit and Buyer loss is limited during to the premium he pays

Call Buyers Benefit

Choose the correct answer

If price goes above the strike price before the expiry date

If price reached the strike price

If price goes above the strike price after the expiry date

Quiz - Basics of Trading Instruments (Equity, Futures and Options (Level 4)

The Strike Price option prices are

Choose the most appropriate answer

Fixed price, decided by Exchanges

Fixed by traders negotiating the price

Option are Traded by negotiating

Choose the correct answer

Strike Price

Spot Price

Premium

Quiz - Basics of Trading Instruments (Equity, Futures and Options (Level 4)

Option Seller has to pay ____________ while selling the contract.

Choose the most appropriate answer

Margin to Exchange

Margin to Buyer

Premium to Buyer

Option Writer is a

Choose the correct answer

Buyer of option contract

Seller of option contract

Exchange

Broker of the Clients

Quiz - Basics of Trading Instruments (Equity, Futures and Options (Level 4)

Enter you Name

Email ID

9 plus 9 equals?*

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Write here

Futures and Options Quiz – Level 4

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Quiz - Basics of Trading Instruments (Equity, Futures and Options (Level 4)

Quiz - Basics of Trading Instruments (Equity, Futures and Options (Level 4)

Quiz - Basics of Trading Instruments (Equity, Futures and Options (Level 4)

Quiz - Basics of Trading Instruments (Equity, Futures and Options (Level 4)

Quiz - Basics of Trading Instruments (Equity, Futures and Options (Level 4)

Quiz - Basics of Trading Instruments (Equity, Futures and Options (Level 4)

Quiz - Basics of Trading Instruments (Equity, Futures and Options (Level 4)

Quiz - Basics of Trading Instruments (Equity, Futures and Options (Level 4)

Quiz - Basics of Trading Instruments (Equity, Futures and Options (Level 4)

Quiz - Basics of Trading Instruments (Equity, Futures and Options (Level 4)

Quiz - Basics of Trading Instruments (Equity, Futures and Options (Level 4)

Quiz - Basics of Trading Instruments (Equity, Futures and Options (Level 4)

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