Lesson 3: NISM 1

The Underlying for currency futures is ________

The bid ask price for USDINR futures has been showing as 72.5500/5525. If the price moves up, what would be the bid ask price with minimum possible changes?

The tick size for USDINR currency futures is:

Ramesh bought USDINR currency futures at Rs 71.5500. Ramesh earned a profit of seven ticks after he sold the futures. At what price did he sell?

Sanjeev bought USDINR currency futures at Rs 71.7550. Sanjeev earned a profit of 13 ticks after he sold the futures. What was Sanjeev’s profit from the lot?

Gayatri bought USDINR Sept futures at Rs.71.2550 when the underlying was trading at Rs. 71.20. She sold the futures at Rs. 71.2725. The spot price is _____________

The longest Currency futures on Indian exchanges, have an expiry of:

The settlement date of each currency futures contract is:

The last business day for currency futures in India is the:

Expiry day of the Currency futures market is:

The contract size or the lot size for EURINR is:

The lot size for JPYINR is _________ and the price is quoted in ______ unit.

In case of EURUSD, the contract size is:

A trader buys 10 lots of EURUSD futures at 1.15 expecting it to move up. If the future moves to 1.20, the trader squares off his positions. He makes a:

The amount that needs to be deposited in margin account at the time of getting into a futures contract is:

Kirti bought EURINR currency futures at Rs. 81.25 during the early hours of the trade. The futures close the day at Rs. 81. 32. The MTM (marked to market margin) in Kirti’s account will show:

Large and unpredictable movements in currency prices expose investors to currency risks. True or False?

Currency risks can be hedged through:

Currency futures are only for hedgers, speculators have no opportunities in currency futures market. True or False?

Which is the correct option?

1. Forward contracts can be customized.
2. Future contracts eliminate counter party risk.

Retail speculators with no exposure to foreign currency can still trade in OTC (Forward) currency markets. True or False?

The cost of trading is less in OTC (Forward) market than in exchange traded future market.

An exporter has received an order of 10,000 shirts worth USD 26,500. The payment is to be received after 2 months in dollar terms. He wants a protection against appreciation of dollar. He can have a perfect hedge by making use of currency futures. True or False?

OTC (Forward) market is restricted to a select few, namely, authorised dealers (banks) and individual/ entities with foreign currency exposures. True or False?

The formula for calculating currency forward price ‘F’ is:

It is expected that the interest rates in US are going to increase, while the interest rates in India are expected to come down. A currency trader in India will:

The interest rates in India are at 8%, while in US interest rates are 4%. The USDINR in spot market is trading at Rs.72. What is the 3 month forward rate?

The interest rates in England are 0.75% while in India are 8%. The GBPINR spot rate is Rs. 95. What is the 6 month forward rate for GBPINR?

The USDINR spot price is Rs 72.30. The 3 month forward rate for USDINR is Rs73.02.

The interest rates in India are at 8%, while in US interest rates are 4%. The USDINR in spot market is trading at Rs.72. If the rates in US were increased by 1% overnight, what would be the impact on 3 month forward USDINR rate?

In the GBPINR pair, INR is at discount and GBP is at premium. True or False?

If the rate of interest in India is higher than the rate of interest in US, which is incorrect with respect to USDINR?