Interest / Index Arbitrage
This quiz is to test your understanding of various low risk products,questions asked are very simple and every one is expexted to get full marks.
- 1.What arbitrage trade can you make from following situation: Cash trading at: Rs.100 Current month future trading at: Rs. 95 Next month future trading at: Rs.97
- A.
Current month cash futures
- B.
Next month cash futures
- C.
Calendar
- D.
None of the above
- 2.Record date for a stock is 27th Feb 2008 & dividend declared is Rs.15. What trade will you take if the expiry is on 26th Feb 2008 given the following situation: Cash trading at: Rs.1232 Current month future trading at: Rs. 1229 Next month future trading at: Rs.1227
- A.
Current month cash futures
- B.
Next month cash futures
- C.
Calendar
- D.
None of the above
- 3.You have 20,000 shares of Rs.100 each, company declares split of 1:5. What is the value of shares that you will have after ex-date?
- A.
Rs.100,00,000
- B.
Rs.20,00,000
- C.
Rs. 1,00,000
- D.
Rs. 2,00,00,000
- 4.If you flip a stock with inflow of 0.5% and reinitiate the position at end of the day with outflow of 0.1% you have gained intraday (approx.):
- A.
0.3%
- B.
0.4%
- C.
0.33%
- D.
None of the above
- 5.What is the cost for BSE NSE arbitrage?
- A.
0.35%
- B.
0.15%
- C.
0.07%
- D.
0.28%
- 6.You have position in XYZ stock in which you were neither able to flip nor roll. What will you do to exit the position?
- A.
Do price discovery for cash
- B.
Do price discovery for future
- C.
Sell equal quantity of cash every hour throughout the day
- D.
None of the above
- 7.If cash trading at Rs. 200 and dividend declared in the stock is Rs. 5, at what price should the future trade so that there does not exist any arbitrage opportunity?
- A.
Rs. 200
- B.
Rs. 195
- C.
Rs. 205
- D.
None of the above
- 8.During post market trading at what price should one put the order in NSE?
- A.
Average traded price
- B.
Closing price
- C.
LTP
- D.
MKT
- 9.What happens when the stock goes Ex-rights?
- A.
Mkt cap of the company decreases
- B.
Mkt. cap of the company increases
- C.
Number of shares and Mkt cap. of the company increases
- D.
Number of shares and Mkt cap. of the company decreases
- 10.Following data has been calculated taking closing prices as on 30th Jan:Total Mkt. Cap of the INDEX: 50 CrMkt. Cap of stock Y: 0.25 CrMkt. Cap of stock X: 1.25 CrStock X is going to replace stock Y in the Index. From the above information find:1) Weight of stock X in Changed Index
- A.
2.25%
- B.
0.5%
- C.
2.51%
- D.
None of the above
- 11.
- 2) Adjustment that has to be done if you have Undha baskets
- A.
Buy Y and Sell X
- B.
Buy X and Sell Y
- C.
Buy X and Y
- 12.Sensex is a ....
- A.
Market cap. weighted Index
- B.
Free Float weighted Index
- C.
Price Weighted Index
- D.
Volume Weighted Index
- 13.Is there any arbitrage opportunity given the following situation?Cash trading @ 5083Call trading @ 150Put trading @ 75Strike 5000
- A.
Yes, Conversion
- B.
No opportunity
- C.
Yes, Reversal
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