CBSE Class 12 Derivative Market Operations Question Paper 2019

SET-4
Series BVM H$moS> Z§.
Code No.
318
amob Z§. narjmWu H$moS >H$mo CÎma-nwpñVH$m Ho$ _wI-n¥ð
Roll No. >na Adí` {bIo§ &
Candidates must write the Code on the
title page of the answer-book.

 H¥$n`m Om±M H$a b| {H$ Bg àíZ-nÌ _o§ _w{ÐV n¥ð> 7 h¢ &
 àíZ-nÌ _| Xm{hZo hmW H$s Amoa {XE JE H$moS >Zå~a H$mo N>mÌ CÎma -nwpñVH$m Ho$ _wI-n¥ð> na
{bI| &
 H¥$n`m Om±M H$a b| {H$ Bg àíZ-nÌ _| >33 àíZ h¢ &
 H¥$n`m àíZ H$m CÎma {bIZm ewê$ H$aZo go nhbo, àíZ H$m H«$_m§H$ Adí` {bI| &
 Bg àíZ-nÌ H$mo n‹T>Zo Ho$ {bE 15 {_ZQ >H$m g_` {X`m J`m h¡ & àíZ-nÌ H$m {dVaU nydm©•
_| 10.15 ~Oo {H$`m OmEJm & 10.15 ~Oo go 10.30 ~Oo VH$ N>mÌ Ho$db àíZ-nÌ H$mo n‹T>|Jo
Am¡a Bg Ad{Y Ho$ Xm¡amZ do CÎma-nwpñVH$m na H$moB© CÎma Zht {bI|Jo &
 Please check that this question paper contains 7 printed pages.
 Code number given on the right hand side of the question paper should be
written on the title page of the answer-book by the candidate.
 Please check that this question paper contains 33 questions.
 Please write down the Serial Number of the question before
attempting it.
 15 minute time has been allotted to read this question paper. The question
paper will be distributed at 10.15 a.m. From 10.15 a.m. to 10.30 a.m., the
students will read the question paper only and will not write any answer on
the answer-book during this period.

ì`wËnÞ ~mµOma àMmbZ
DERIVATIVE MARKET OPERATIONS

{ZYm©[aV g_` : 3 KÊQ>o A{YH$V_ A§H$ : 60
Time allowed : 3 hours Maximum Marks : 60

318 1 P.T.O.

gm_mÝ` {ZX}e :
(i) Bg àíZ-nÌ _| 33 àíZ em{_b h¢ {Og_| go Aä`Wu H$mo {g\©$ 25 àíZ H$aZo H$s µOê$aV
h¡ &
(ii) àíZ-nÌ Xmo IÊS>m| _| {d^m{OV h¡ &
IÊS> A
 ^mJ I ‘| 1 A§H$ à˶oH$ Ho$ 1 go 12 VH$ àíZ h¢ {OZ‘| go {H$Ýht 10 àíZm| Ho$ CÎma
XoZo h¢ &
 ^mJ II ‘| 2 A§H$ à˶oH$ Ho$ 13 go 19 VH$ àíZ h¢ {OZ‘| go {H$Ýht 5 àíZm| Ho$ CÎma
XoZo h¢ &
 ^mJ III ‘| 3 A§H$ à˶oH$ Ho$ 20 go 26 VH$ àíZ h¢ {OZ‘| go {H$Ýht 5 àíZm| Ho$
CÎma XoZo h¢ &
IÊS> ~
 Bg IÊS> ‘| 5 A§H$ à˶oH$ Ho$ 27 go 33 VH$ àíZ h¢ {OZ‘| go {H$Ýht 5 àíZm| Ho$ CÎma
XoZo h¢ &
(iii) EH$ IÊS> Ho$ g^r àíZm| Ho$ CÎma C{MV H«$‘ ‘| Xr{OE &

General Instructions :

(i) This question paper contains 33 questions out of which the candidate
needs to attempt only 25 questions.

(ii) Question paper is divided into two sections.

SECTION A
 Part I contains questions 1 to 12 of 1 mark each out of which any
10 questions are to be attempted.
 Part II contains questions 13 to 19 of 2 marks each out of which any
5 questions are to be attempted
 Part III contains questions 20 to 26 of 3 marks each out of which any
5 questions are to be attempted.

SECTION B
 Contains questions 27 to 33 of 5 marks each out of which any
5 questions are to be attempted.

(iii) All questions of a particular section must be placed in the correct order.

318 2

IÊS> A$
SECTION A

^mJ I
Part I

{H$Ýht 10 àíZm| Ho$ CÎma Xr{OE & àË`oH$ àíZ 1 A§H$ H$m h¡ &
Attempt any 10 questions. Each question is of 1 mark.

1. ì¶wËnÞm| ‘| ì¶mnma H$aZo dmbo {H$Ýht Xmo AÝVam©îQ´>r¶ eo¶a ~mµOmam| Ho$ Zm‘ Xr{OE & 1
Name any two popular international stock exchanges that trade in
derivatives.

2. ‘ñd¡n’ H$mo EH$ dm¶Xm g§{dXm ³¶m| ‘mZm OmVm h¡ ? 1
Why is Swap considered as forward contract ?

3. gyMH$m§H$ H$s Mmb H$mo à^m{dV H$aZo dmbo {H$Ýht Xmo ì¶pîQ> Am{W©H$ H$maH$m| Ho$ Zm‘m| H$s
gyMr Xr{OE & 1
List any two macro economic factors that affect the index movement.

4. EH$ AÀN>o gyMH$m§H$ H$m ³¶m AW© h¡ ? 1
What is meant by a Good Index ?

5. ‘H$’ Zo < 100 à˶oH$ H$s Xa go 1000 ñQ>m°H$ H$m H«$¶ {H$¶m & ¶{X ñQ>m°H$ H$m ~rQ>m 1·2 h¡
Vmo dh nyU© à{VajU (hoqOJ) H¡$go H$aoJm ? 1
A bought ABC stock 1000 @ <100. How will he make complete hedging if
Beta of stock is 1·2 ?

6. Am§{eH$ à{VajU (hoqOJ) H$m ³¶m AW© h¡ ? 1
What is meant by partial hedging ?

7. VoµOr H$s pñW{V ‘| AJ«dVu (^mdr) g§{dXm H$m H«$¶ H$aZo Ho$ ñWmZ na ñnm°Q> g§{dXm H$m H«$¶
H$aZo dmbo à{V^mJr H$m Zm‘ Xr{OE & 1
Name the participant who buys future instead of spot contract in a
bullish condition.

318 3 P.T.O.

8. H$m¡Z-gm Am°ßeZ àhma (ñQ´>mBH$) ZH$mamË‘H$ amoH$‹S> àdmh H$s Amoa bo OmVm h¡ ? 1
Which option strike leads to negative cash flow ?

9. ‘I’ Zo < 20 Ho$ àr{‘¶‘ na < 140 _| H$m°b Am°ßeZ H$m H«$¶ {H$¶m & g_m{ßV na ñQ>m°H$
H$m H«$¶-{dH«$¶ < 145 na hmoVm h¡ & Am°ßeZ H$m g‘¶ ‘yë¶ kmV H$s{OE & 1
B bought < 140 call option at premium < 20. Spot trades at < 145 on
expiry. Find the time value of the option.

10. nwQ> Am°ßeZ H$m A{YH$V‘ ‘yë¶ ³¶m h¡ ? 1
What is the maximum price of put option ?

11. ewéAmVr ({Q´>Ja) ‘yë¶ H$m ³¶m AW© h¡ ? 1
What is meant by trigger price ?

12. AJ«dVu (^mdr) IÊS> H$m AZw‘mo{XV Cn¶moJH$Vm© H$m¡Z h¡ ? 1
Who is the approved user of the F&O segment ?

^mJ II
Part II

{H$Ýht 5 àíZm| Ho$ CÎma Xr{OE & àË`oH$ àíZ 2 A§H$ H$m h¡ &
Attempt any 5 questions. Each question is of 2 marks.

13. ì¶wËnÞ ~mµOma Ho$ {H$Ýht Xmo Am{W©H$ H$m¶m] H$m C„oI H$s{OE & 2
State any two economic functions of derivative market.

14. ‘{Z:ewëH$ Mb ~mµOma ny±OrH$aU ^m[aV gyMH$m§H$’ {d{Y H$m ³¶m AW© h¡ ? 2
What is meant by ‘free float market capitalization weighted index’
method ?

15. EH$ à{V^y{V gyMH$m§H$ H$m < 10,000 na ì¶mnma hmo ahm h¡ & YZ H$m {Zdoe 10% dm{f©H$
H$s Xa go {H$¶m Om gH$Vm h¡ & Xmo ‘hrZo H$s g§{dXm à{V^y{V gyMH$m§H$ AJ«dVu H$m C{MV
‘yë¶ ³¶m hmoJm ¶{X e^·02 = 1·02 h¡ ? 2
A security index trades at < 10,000. Money can be invested at @ 10% p.a.
What will be the fair value of the two month contract of security index
future if e^·02 = 1·02 ?

318 4

16. ‘bå~r à{V^y{V, AJ«dVu (^mdr) {dH«$¶’ H$s Cn¶mo{JVm H$mo g§jon ‘| g‘PmBE & 2

Explain briefly the application ‘long securities, sell future’.

17. A{Y‘yë¶ AJ«d{V©¶m| (^m{d¶m|) H$m g§jon ‘| dU©Z H$s{OE & 2

Briefly describe Overpriced futures.

18. H$ Zo EH$ H$mb H$m < 240 ‘| < 40 Ho$ àr{‘¶‘ na H«$¶ {H$¶m & g_m{á na ñnm°Q> ‘yë¶
< 285 h¡ & bm°Q> ‘yë¶ < 100 h¡ & Bg pñW{V ‘| bm^ AWdm hm{Z pñW{V kmV H$s{OE & 2
A buys one Call for < 240 @ premium < 40. Spot price at the expiry is
< 285. Lot size is 100. Find his profit or loss position in this case.

19. {Xdg AmXoe (S>o AmS>©a) H$m ³¶m AW© h¡ ? 2

What is meant by a day order ?

^mJ III
Part III

{H$Ýht 5 àíZm| Ho$ CÎma Xr{OE & àË`oH$ àíZ 3 A§H$ H$m h¡ &
Attempt any 5 questions. Each question is of 3 marks.

20. dm¶Xm g§{dXm H$s {H$Ýht VrZ à‘wI {deofVmAm| H$m C„oI H$s{OE & 3

State any three salient features of Forward Contract.

21. {ZåZ H$mo g§jon ‘| g‘PmBE : 3
(H$) Amapå^H$ Cnm§V
(I) aIaImd Cnm§V
Briefly explain the following :
(a) Initial Margin
(b) Maintenance Margin

318 5 P.T.O.

22. AJ«dVu (^mdr) IÊS> na {H$E JE ì¶mnma H$s H$a Xam| H$m C„oI H$s{OE & 3
State the rates of taxation charges for trades executed on futures
segment.

23. ñQ>m°H$ AmßeZ H$s g§{dXm {d{eîQ>VmAm| H$m g§jon ‘| dU©Z H$s{OE & 3
Describe briefly the contract specifications of stock option.

24. J«mhH$ Cnm§V [anmo{Q>ªJ H$s à{H«$¶m H$mo g§jon ‘| g‘PmBE & 3
Describe briefly the procedure of reporting of client margin.

25. à{V^y{V boZXoZ H$a H$m ³¶m AW© h¡ ? EH$ CXmhaU Xr{OE & 3
What is meant by STT ? Give an example.

26. EH$ Am°ßeZ g§{dXm H$mo MwH$Vm H$aZo H$s boIm§H$Z à{H«$¶m H$m dU©Z H$s{OE & 3
Describe briefly the accounting procedure at the time of squaring off an
option contract.

IÊS> ~
SECTION B

Bg IÊS> _| go {H$Ýht 5 àíZm| Ho$ CÎma Xr{OE & àË`oH$ àíZ 5 A§H$m| H$m h¡ &
Attempt any 5 questions from this section. Each question is of 5 marks.

27. Am°ßeZ pñW{V¶m| ‘| Omo{I‘ n[a‘mU ‘mnZo dmbo J«rH$ Ajam| H$mo g§jon ‘| g‘PmBE & 5
Briefly explain the Greek letters that measure the dimension of risk in
Option positions.

28. ‘§Xr ’¡$bmd (~o¶a ñàoS>) H$mo EH$ {MÌ Ho$ Ûmam g‘PmBE & 5
Diagrammatically explain the Bear Spread position.

29. ãb¡H$ VWm ñH$moëg H$m¡Z Wo ? H$m°b VWm nwQ> Am°ßeZ Ho$ {bE CÝhm|Zo H$m¡Z-go gyÌ H$s ImoO
H$s ? BgH$s {deofVmE± {b{IE & 1+1+3=5
Who were Black and Scholes ? Which formula did they discover for calls
and puts option ? Write its features.
318 6

30. H$m°nm}aoQ> nwZJ©R>Z Ho$ H$maU ì¶wËnÞ ì`mnma Ho$ {bE ñQ>m°H$ ¶mo½¶Vm ‘mZX§S>m| H$mo g§jon ‘|
g‘PmBE & 5
Explain briefly the eligibility criteria of stock for derivatives trading on
account of corporate restructuring.

31. AJ«dVu (^mdr) gyMH$m§H$ g§{dXm H$s {d{eîQ>VmAm| H$m {ddaU Xr{OE & 5
Give the details of contract specification of index future.

32. EZ.Eg.gr.gr.Eb. Ûmam {dH${gV AJ«dVu (^mdr) IÊS> Ho$ {bE Omo{I‘ amoH$Wm‘ V§Ì H$mo
g§jon ‘| g‘PmBE & 5
Briefly explain risk containment mechanism for F&O segment developed
by NSCCL.

33. ‘H«$m°g ‘m{O©qZJ’ H$mo g§jon ‘| g‘PmBE & 5
Briefly explain ‘Cross Margining’.

318 7 P.T.O.