SECTION A : OBJECTIVE TYPE QUESTIONS

Q.1 Answer any 4 out of the given 6 questions on Employability Skills(1x 4

= 4 marks)
i. A group of word, which does not make complete sense, is known as 1
a…….?
(a) Sentences
(b) Phrase
(c) Communication
(d)None of the above
ii. What is in correct in SMART Goal? 1
a. Specific
b. Measurable
c. Action-oriented
d. Read able Time
iii. In the spreadsheet, you can see a worksheet with cells placed in 1
But not .
a. Row ,column
b. Column, Row
c. Row Horizontal, column vertical
d. Row, column horizontal
iv. ………….is characterized by a lack of interest in social relationship and 1
people tend to be distant.
(a) paranoid
(b) antisocial
(c) Schizoid
(d)board line
v. ICT stand for……. 1
(a) Informal and communication talk
(b) Informal and communication technology
(c) Information and communication technology
(d)Information and commercial technology .

vi. Daisy believes that she will not have the ability to work with a team when 1
she starts her business. The barrier she is facing is…
(a) Getting Capital
(b) Self doubt
(c) Risk taking
(d) Building the right team

Q.2 Answer any 5out of the given 7 questions(1x 5 =5 marks)

i. What is the purpose of the Investor education and protection Fund? 1

ii. The securities market has essentially three categories of participants 1

(i) The investors, (ii) the issuers and .
a. Foreigners
b. the Intermediaries
c. Government
d. Regulators
iii. What is basket trading? 1

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 iv. This category of membership entitles a member to clear and settle 1
trades of such members of the Exchange who choose to clear and
settle their trades through this member.
a. Trading Member
b. Trading cum self-clearing member
c. Trading cum clearing member
d. Professional Clearing member

v. Which of the following is a typical feature of online trading? 1

A) Manual order submission

B) Real-time price updates

C) Limited access to markets

D) Paper-based trading
vi. Members should have a prudent system of risk management to 1
protect themselves from client default. is an important
element of such a system.
a. NSCCL
b. Margin
c. Capital
d. Unique Client Code

vii. 1
The initial margin requirement is typically expressed as a percentage of:

a) The price of the security

b) The total value of the security
c) The interest on the loan
d) The total capital in the investor’s account

Q.3 Answer any 6 out of the given 7 questions(1 x6 =6 marks)

i. 1
In trading, leverage is best defined as:

a) The ability to influence stock prices

b) Borrowing funds to increase the size of a trade
c) A tool for risk assessment
d) The process of investing in multiple assets
ii. Which of the following is not an activity of Normal market open 1
phase?
a. Order Entry
b. Order Modification
c. Order Cancellation
d. Order Auction
iii. What is meant by Speculators? 1

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 iv. An indicator for corporate actions for a security is another feature in 1
market watch. What does C* indicate here?
a. In case of more than one of CD,CR,CB,CI
b. In case of more than two of CD,CR,CB,CI
c. In case of more than three of CD,CR,CB,CI
d. In case of Less than two of CD,CR,CB,CI

v. The "price-to-earnings" (P/E) ratio is used to assess: 1

A) A company's liquidity position

B) The profitability of a company

C) How much investors are willing to pay for a company’s

earnings

D) A company's operational efficiency

vi. What is meant by mark to market margin? 1
vii. 1
The margin requirement set by a broker for a particular trade is usually
based on:

a) The volatility of the stock

b) The investor’s credit score
c) The interest rates
d) The stock exchange rate

Q.4 Answer any 5out of the given 6 questions(1 x5 =5 marks)

i. What is meant by Securities ITM, ATM, and OTM? 1
ii. Which of the following financial statements provides a summary 1
of a company’s revenues and expenses over a period of time?

• A) Balance Sheet
• B) Income Statement
• C) Cash Flow Statement
• D) Statement of Changes in Equity

iii. What is short delivery? 1

iv. Daily margins payable by the trading members in the Cash market 1
consists of the following except .
a. Value at Risk(VaR)margin
b. Mark to Market Margin
c. Extreme Loss Margin
d. Replacement cost margin
v. The VaR margin rate will be charged on the net outstanding 1
position of the respective clients on the
respective securities across all open settlements.
a. Buy Value-Sell Value
b. Buy-Sell
c. Buy Value +Sell Value
d. Buy+ Sell
vi. Who allots ISIN’s for Government Securities? 1

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Q.5 Answer any 5out of the given 6 questions(1 x5 =5 marks)
i. Which financial ratio is calculated by dividing net income by 1
shareholders' equity?

• A) Current Ratio
• B) Return on Assets (ROA)
• C) Return on Equity (ROE)
• D) Quick Ratio

ii. 1
A margin call occurs when the investor’s equity falls below the:

a) Initial margin
b) Maintenance margin
c) Margin loan
d) Credit limit

iii. Certain key financial parameters like Earnings Per Share (EPS), 1
P/E ratio, current size of equity etc. for arriving at the estimated
future price will be considered as .
a. Industry Analysis
b. Corporate Analysis
c. Financial Analysis
d. Technical Analysis
iv. Which of the following would most likely appear on the cash 1
flow statement under investing activities?

• A) Proceeds from issuing stock

• B) Payments for purchasing fixed assets
• C) Payments for operating expenses
• D) Interest payments on loans

v. Which of the following is a sign of a company's solvency? 1

• A) High Return on Assets (ROA)

• B) Low debt-to-equity ratio
• C) High Quick Ratio
• D) Strong current ratio

vi. Measures the profit available to the equity shareholders 1

per share, that is, the amount that they can get one very share held.
a. Leverage/Capital Structure
b. Earnings Per Share
c. Current Account Structure
d. Profitability Ratio

Q.6 Answerany5outof thegiven6 questions(1 x5 =5 marks)

i. 1
What is a "long position" in a futures contract?

A) A contract to sell an asset in the future

B) A contract to buy an asset in the future
C) A contract to borrow an asset
D) A contract to receive an asset immediately
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 ii. What is an option premium? 1

iii. 1
Which of the following is the definition of a "put option"?

A) An option to buy an asset at a specified price

B) An option to sell an asset at a specified price
C) A contract that requires the seller to deliver the underlying asset
D) A futures contract for commodities
iv. 1
Which of the following is TRUE about European options?

A) They can be exercised at any time before expiration

B) They can only be exercised on the expiration date
C) They are settled in cash immediately
D) They are traded only in the U.S.
v. What are American Options? 1
vi. 1
What does "delta" represent in options pricing?

A) The rate of change in the option's price relative to the change in the
underlying asset's price
B) The time remaining until the option expires
C) The volatility of the underlying asset
D) The interest rate impact on the option’s price

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 SECTIONB : SUBJECTIVE TYPE QUESTIONS

Answer any 3 out of the given 5 questions on Employability Skills (2x3=6marks) Answer
each question in 20 – 30 words.

Q.7 What do you mean by complex sentences? 2

Q.8 There are five parameters that describe an individual’s personality. These 2
Five dimensions are also called the ‘Big Five Factors’ and the model are
referred to as the ‘Five Factor Model’, Name them and define any one.
Q.9 What is shorting of Data in spreadsheet? 2
Q. 10 A startup is a company that is in the First stage of its operation. How do you 2
Describe it?
Q. 11 Define Eco- Tourism. 2

Answer any 3 out of the given 5 questions in 20– 30 words each (2 x3= 6 marks)

Q. 12 How a trader can check the states of various ordered enter by him? 2
Q. 13 How is VAR margin Collected? Describe briefly. 2
Q. 14 What are the rights enjoyed by Preference shareholders? 2
Q. 15 Compare OTC and Exchange traded Derivatives. 2
Q. 16 All Future contracts are square off at the expiry. What do you know about its 2
Contract cycle? Give one Example.

Answer any 2out of the given 3 questions in 30–50 words each (3 x2= 6 marks)
Q. 17 Briefly Describe the entities involved in the process of Clearing and 3
settlement of the trade executed in stock exchange?
Q. 18 Explain the structure of ISIN and its components. 3
Q. 19 The trading members are required to provide liquid assets which adequately 3
cover various margins & minimum capital requirements under capital
Adequacy requirement. Describe its liquid asset requirement.

Answer any 3 out of the given 5 questions in 50–80words each(4 x3= 12 marks)

Q. 20 How is Equity index Future priced? Explain. 4

Q. 21 You enter into a long futures contract for 1000 units of a commodity at Rs.80 per 4
unit. The initial margin requirement is Rs. 4,000, and the maintenance margin is
Rs. 2,500.

Question: If the price of the commodity drops to Rs.75 per unit, will you receive a
margin call?

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Q. 22 A farmer wish to hedge against a potential fall in the price of wheat. The current 4
price of wheat is Rs. 5.00 per Kg, and you take a short position in 5000 Kgs of wheat.
Six months later, the price of wheat falls to Rs.4.50 per Kg.

Question: What is Farmer profit or loss from the futures contract, and how does it
compare to the loss on the actual wheat sale?

Q. 23 Besides serving as a barometer of the economy/market, the index also has 4

other applications in finance. Various products have been designed based
on the indices such as the index derivatives, index funds and the exchange
traded funds. We here restrict our discussion to only index derivatives. How
Does an index derivative earn popularity?
Q. 24 In a developing market, XYZ Securities Ltd. A brokerage firm, facilitates the trading of 4
securities (stocks and bonds) on the country’s stock exchange. The firm offers trading
services to individual and institutional investors. Over time, the trading volume has
grown significantly, leading to an increase in settlement complexities. The company's
management has decided to improve its clearing and settlement processes to ensure
faster and more efficient trade settlements, reduce risks, and comply with legal and
regulatory requirements. Explain the Clearing process and risk management by the
company.

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