Dhaval Visariya

NISM Commodity Derivatives Mock Test 8 (Questions 1 to 100) Complete Practice Set 8-A, 8-B, and 8-C with Answers and Explanations Q1. Which option greek measures change in option premium with respect to change in price of the underlying asset? Gamma Delta Rho Theta View Answer & Explanation ✓ CORRECT ANSWER: Delta Explanation: The most important of the 'Greeks' is the option's "Delta". This measures the sensitivity of the option value to a given small change in the price of the underlying asset. Delta = Change in option premium / Unit change in price of the underlying asset Q2. In case of futures contract, when is the margin money is released and open position reduced? Only on the expiry of the contract Only when the open position is squared off Either on the expiry of the contract or when the open position is squared off, whichever is later Either on the expiry of the contract or when the open position is squared off, whichever is earlier View A...

Commodity Derivatives Mock Test 7 (Complete Practice Set) Test your knowledge on commodity index construction, hedging accounting, order matching rules, and advanced options concepts with these 50 comprehensive practice questions. Q 1. Assuming all other factors remains constant, which of the following statement is TRUE regarding the relation between interest rates and option premium? A) Reduction in interest rates will result in a decrease in the value of both call option and put option B) Reduction in interest rates will result in an increase in the value of both call option and put option C) Reduction in interest rates increases the value of a call option and decreases the value of a put option D) Reduction in interest rates decreases the value of a call option and increases the value of a put option View Answer & Explanation ✓ CORRECT ANSWER: Reduction in interest rates decreases the value of a call option and increases the value of a put option Explanation: Reduc...