Options - NISM SERIES VIII - EQUITY AND DERIVATIVES MCQs
Options An Option is a contract that gives the right, but not an obligation, to buy or sell the underlying on or before a stated date and at a stated price. While buyer of option pays the premium and buys the right, writer/seller of option receives the premium with obligation to sell/ buy the underlying asset, if the buyer exercises his right. Chapter 1: Basics of Derivatives ...... 1.1 Basics of Derivatives ................................................ 1.2 Derivatives Market – History & Evolution ...... 1.3 Indian Derivatives Market ... 1.4 Market Participants 1.5 Types of Derivatives Market 1.6 Significance of Derivatives .. 1.7 Various risks faced by the participants in derivatives .. Chapter 2: Understanding Index .. 2.1 Introduction to Index . 2.2 Significance of Index . 2.3 Types of Stock Market Indices . 2.4 Attributes of an Index .. 2.5 Index management .. 2.6 Major Indices in India ........ 2.7 Application of Indices ........ Chapter 3: Introduction to Forward and Futures ... 3.1 Introduction to forward and futures Contracts ... 3.2 Pay off Charts for Futures contract ...... 3.3 Futures pricing .... 3.4 Commodity, Equity & Index Futures ..................... 3.5 Uses of futures ............................................ Chapter 4: Introduction to Options ............... 4.1 Basics of options ......................... 4.2 Pay off Charts for Options ........................................ 4.3 Basics of Option Pricing and Option Greeks ......... 4.4 Uses of Options ................................... Chapter 5: Option Trading Strategies ..... 5.1 Option Spreads ................ 5.2 Straddle ......... 5.3 Strangle 5.4 Covered Call ... 5.5 Protective Put ........ 5.6 Collar ... 5.7 Butterfly Spread ......... 8 Chapter 6: Introduction to Trading Systems .... 6.1 Trading System .................. 6.2 Selection criteria of Stocks for trading ....... 6.3 Selection criteria of Index for trading ....... 6.4 Adjustments for Corporate Actions .......... 6.5 Position Limit ............................................ 6.6 Using Daily Newspapers to Track Futures and Options .... Chapter 7: Introduction to Clearing and Settlement System ........ 7.1 Clearing Members .............................................................. 7.2 Clearing Mechanism ................................ 7.3 Settlement Mechanism ......................... 7.4 Risk Management .............................................. 7.5 Margining and mark to market under SPAN ............ Chapter 8: Legal and Regulatory Environment ....... 8.1 Securities Contracts (Regulation) Act, 1956 .............. 8.2 Securities and Exchange Board of India Act, 1992 ... 8.3 Regulation in Trading ......... 8.4 Regulations in Clearing & Settlement and Risk Management .. 8.5 Major recommendations of Dr. L. C. Gupta Committee ...... 8.6 Major recommendations of Prof. J. R. Verma Committee ...... Chapter 9: Accounting and Taxation ........................ 9.1 Accounting .............................................................. 9.2 Taxation of derivative transaction in securities ........... Chapter 10: Sales Practices and Investors Protection Services ....... 10.1 Understanding risk profile of the client .............. 10.2 Investors Grievance Mechanism ........
