NISM Series 13 Mock Test 1: Free Common Derivatives Paper

How this mock is marked

• 50 questions, one mark each.
• 60 minutes on the clock. That is the real exam's pace: 180 minutes for 150 questions.
• A wrong answer loses a quarter of a mark. A blank loses nothing.
• You pass with 60% or more.
• Submit to see your score and the chapters to work on. Then check each right answer and why it is right.

What this paper covers

50 questions from 10 chapters. Each chapter gets a share that follows our question bank.

• Basics of Derivatives (Equity, Currency and Interest Rate): 2 questions.
• Introduction to the Underlying Markets: 8 questions.
• Introduction to Forwards and Futures: 7 questions.
• Strategies Using Futures: 8 questions.
• Introduction to Options – Options on Equities and Currencies: 8 questions.
• Option Trading Strategies – Strategies using Equity Options and Currency options: 1 question.
• Introduction to Trading, Clearing, Settlement & Risk Management: 8 questions.
• Legal and Regulatory Environment: 5 questions.
• Accounting and Taxation of Derivatives: 2 questions.
• Sales Practices, Code of Conduct and Investor Protection Measures: 1 question.

By level: Beginner 15 · Intermediate 25 · Advanced 10.

Chapter split of Mock 1

How Mock 1 shares its questions between chapters and levels. This split belongs to this paper. The other mocks of this exam have their own.

• Basics of Derivatives (Equity, Currency and Interest Rate): Beginner 0 · Intermediate 1 · Advanced 1.
• Introduction to the Underlying Markets: Beginner 2 · Intermediate 4 · Advanced 2.
• Introduction to Forwards and Futures: Beginner 2 · Intermediate 4 · Advanced 1.
• Strategies Using Futures: Beginner 2 · Intermediate 4 · Advanced 2.
• Introduction to Options – Options on Equities and Currencies: Beginner 3 · Intermediate 4 · Advanced 1.
• Option Trading Strategies – Strategies using Equity Options and Currency options: Beginner 0 · Intermediate 1 · Advanced 0.
• Introduction to Trading, Clearing, Settlement & Risk Management: Beginner 3 · Intermediate 4 · Advanced 1.
• Legal and Regulatory Environment: Beginner 2 · Intermediate 2 · Advanced 1.
• Accounting and Taxation of Derivatives: Beginner 1 · Intermediate 0 · Advanced 1.
• Sales Practices, Code of Conduct and Investor Protection Measures: Beginner 0 · Intermediate 1 · Advanced 0.

3 sample questions, with answers

These 3 questions are not in Mock 1, so reading them spoils nothing here. They come from Mock 3 of this exam. Each one shows the hint, the answer and why every wrong option is wrong.

1. Q1A put is bought for ₹7 with strike ₹120. What expiry underlying price gives zero profit before costs?

   • A

     Option A. ₹113 — Correct answer

   • B

     Option B. ₹127

     Why it is wrong: ₹127 adds instead of subtracting the premium.

   • C

     Option C. ₹120

     Why it is wrong: ₹120 ignores the cost of the option.

   • D

     Option D. ₹107

     Why it is wrong: ₹107 subtracts too much from the strike.

   Answer: A. Long put break-even = ₹120 − ₹7 = ₹113. Remember: Long put break-even lies below strike by the premium.

   Hint, shown before you answer in practice mode: Common mistake: Do not use the long call break-even rule for a put. A long put must earn back the premium through an intrinsic payoff.

   XIII-087mediumnumerical

   Study this unit

2. Q2A trader buys a near-month currency future at ₹84 and sells a far-month future at ₹85. Near rises to ₹85 and far to ₹85.40. What is the gain per dollar?

   • A

     Option A. ₹1.60

     Why it is wrong: ₹1.60 adds both price movements.

   • B

     Option B. ₹0.60 — Correct answer

   • C

     Option C. −₹0.60

     Why it is wrong: −₹0.60 reverses the net position direction.

   • D

     Option D. ₹0.40

     Why it is wrong: ₹0.40 counts only the far-month loss.

   Answer: B. Near long gains ₹1.00. Far short loses ₹0.40. Net gain = ₹0.60 per dollar. Remember: A calendar spread depends on changes in the relationship between expiries.

   Hint, shown before you answer in practice mode: Common mistake: Do not ignore the second leg of a spread. Calculate both legs of the calendar spread.

   XIII-065mediumnumerical

   Study this unit

3. Q3A bond pays ₹90 annual coupon and trades for ₹900. What is its current yield?

   • A

     Option A. 9%

     Why it is wrong: 9% uses a different assumed denominator.

   • B

     Option B. 10% — Correct answer

   • C

     Option C. 11.11%

     Why it is wrong: 11.11% reverses the ratio.

   • D

     Option D. 1%

     Why it is wrong: 1% misplaces the decimal.

   Answer: B. Current yield = ₹90 ÷ ₹900 × 100 = 10%. Remember: Current yield divides annual coupon by market price.

   Hint, shown before you answer in practice mode: Common mistake: Current yield is not the same as coupon rate. Use current market price, not face value.

   XIII-023mediumnumerical

   Study this unit

Then take Mock 2

Read the chapters your result names first. A new paper then shows whether those gaps have closed.