CBSE Class-12 Question Papers for IOP/Comptt Examination 2017 :

All India Scheme, Derivative Market Operations

DERIVATIVE MARKET OPERATIONS

Time allowed : 3 hours

Maximum Marks : 60

General Instructions :
1. Answer 1 mark questions in about 20 words.
2. Answer 2 marks questions in about 20-30 words.
3. Answer 3 marks questions in about 30-40 words.
4. Answer 5 marks questions in about 100 words.

SECTION – A

Attempt any 7 questions from this section. The questions are of 1 mark each.
1. What is meant by a derivative ?
2. Expand the abbreviation OTC.
3. What is meant by hedging ?
4.State the objective of SC(R) Act.
5.What is meant by IFSD ?

6. In which year the SEBI Act came into effect ?
7. What is daily premium settlement for options ?
8. What is meant by SPAN ?
9. Define the term ‘exercise settlement’ for options contracts.
10. What is meant by final settlement of futures ?

SECTION – B
 

Attempt any 10 questions from this section. The questions are of 2 marks each.
11.State any two benefits of doing arbitrage.
12. What is meant by a contract cycle ?

13. State any two characteristics of forward markets.
14. Give any two dangers of using futures for speculation.
15. What is meant by speculation ?
16. State any two attributes of an index option.
17. With the help of an example explain the meaning of Bull.
18. Who can be a clearing member in NSE ?
19. What is meant by index based futures ? Give one example of index based futures.

20. State any two offsetting positions on which ‘Cross margining’ benefit is provided.
21. State any two powers of SEBI.
22. What is meant by ‘accounting at the inception of a contract’ ?

SECTION – C

Attempt any 6 questions from this section. The questions are of 3 marks each.
23. Explain with the help of a diagram Payoff for a seller of Nifty futures.
24. Describe with diagram Payoff for investor who went short with Nifty at 9000 (Which he don’t want to sell).
25. Explain the corporate hierarchy system in the F&O trading.