Strategies Using Futures
24 questions. Each answer is explained.
Question 1 of 10Practice · Series XIII — Common Derivatives
0 right · 0 wrong · 10 to go
A–D or 1–4 to answer · Enter or → for the next question · ← to go back
Learn these topics
More units in NISM Series XIII
- Basics of Derivatives (Equity, Currency and Interest Rate)6
- Introduction to the Underlying Markets24
- Introduction to Forwards and Futures20
- Introduction to Options – Options on Equities and Currencies22
- Option Trading Strategies – Strategies using Equity Options and Currency options4
- Introduction to Trading, Clearing, Settlement & Risk Management25
- Legal and Regulatory Environment14
- Accounting and Taxation of Derivatives6
- Sales Practices, Code of Conduct and Investor Protection Measures5
Exam format
| Questions | 150 · 1 mark each |
|---|---|
| Duration | 180 min · 3 hours |
| Pass mark | 60% · 90 of 150 marks |
| Negative marking | 25% · 0.25 marks off per wrong answer |
| Certificate validity | 3 years · from the date of the examination |
| Marks for this unit | Not published by NISM |
NISM Series XIII Common Derivatives
Exam rules read on NISM's site on 17 October 2026. Check the current rules on NISM's site (opens in a new tab)
What these answers assume, and when it was last checked
Each question uses the rules listed below. We last checked them on 5 September 2026. A Budget or SEBI circular can change a rate, lot size or expiry day. If a rule changes before your exam, treat the linked questions as out of date and check NISM's current workbook.
- NSE uses Tuesday expiry and BSE uses Thursday expiry. This applies from 1 September 2025.
- The January 2026 index lot sizes are NIFTY 65, BANKNIFTY 30, FINNIFTY 60, MIDCPNIFTY 120 and NIFTYNXT50 25.
- The October 2024 SEBI framework sets a minimum index contract value of Rs 15–20 lakh. Each exchange may list one weekly benchmark index.
- Option buyers pay the premium upfront from 1 February 2025. A short index option has an extra 2% Extreme Loss Margin on expiry day from 20 November 2024.
- Equity short-term capital gains are taxed at 20%. Long-term gains are taxed at 12.5% above Rs 1.25 lakh. Both rates apply from 23 July 2024.
- F&O income is non-speculative business income in ITR-3. NSE equity derivatives trade from 9:15 a.m. to 3:40 p.m.
- The final ten-minute session began on 3 August 2026. It aligns with the cash market Closing Auction Session.
- Most Securities Transaction Tax questions test the base and who pays. On an option sale, it is the premium and the seller pays. On a futures sale, it is the traded value and the seller pays.
- On exercise, Securities Transaction Tax uses intrinsic value: settlement price minus strike price. The buyer pays it.
- Two questions test the current rate. From 1 April 2026, option sales carry 0.15% on the premium and futures sales carry 0.05% on traded price. The earlier rates were 0.10% and 0.02% from 1 October 2024.
- This section uses the T+1 rolling settlement cycle. Obligations are fixed on T+1. A short delivery goes to buy-in auction on T+1 and settles on T+2.
- The trade-for-trade surveillance segment uses direct close-out. Funds pay in by 10:30 a.m. and pay out on or after 1:30 p.m. on settlement day.
- Securities pay in to the settlement pool by 10:30 a.m. They pay out directly to the client’s demat account by 3:30 p.m.
- The 3:30 p.m. deadline replaced 1:30 p.m. under SEBI’s 10 October 2024 circular. Direct client credit was required by SEBI’s 5 June 2024 circular.
- The optional T+0 cycle trades until 1:30 p.m. Obligations are fixed by 2:30 p.m. on the trade day. An early pay-in shortage is closed out directly.
- Cash-market Value at Risk margin is six times exponentially weighted moving-average volatility. It has a 9% floor for Group I, a 21.5% floor for Group II, and a fixed 50% or 75% level for Group III.
- Extreme Loss Margin is 3.5% for a share and 2% for a broad-market-index exchange traded fund. Mark-to-market margin is collected before the next day’s trading. The trade-for-trade segment has 100% upfront margin.
- Close-out uses the higher of the highest price from trade day to auction day and 20% above the auction day’s official close.
- A funds shortage costs 0.07% a day. The trading facility is withdrawn at a shortage of Rs 5 lakh or more.
- SCORES allows 21 calendar days, then two 15-day review levels. Online Dispute Resolution moves from conciliation to arbitration after the market participant and SCORES steps.
- At NSE, the Investor Protection Fund limit is Rs 35 lakh per investor for each defaulting or expelled member. This applies to claims arising after 13 August 2024.
- A Basic Services Demat Account has no annual maintenance charge up to Rs 4 lakh of holdings. It costs up to Rs 100 above that, until the Rs 10 lakh eligibility ceiling. These slabs apply from 1 September 2024.
- The rupee pairs are USD-INR, EUR-INR, GBP-INR and JPY-INR. The cross-currency pairs are EUR-USD, GBP-USD and USD-JPY.
- Each contract covers 1,000 units of the foreign currency, except JPY-INR. JPY-INR covers 100,000 yen and is quoted in rupees per 100 yen.
- The tick is 0.25 paise, or Rs 0.0025. It equals Rs 2.50 a contract.
- Rupee pairs trade from 9:00 a.m. to 5:00 p.m. A monthly contract stops trading at 12:30 p.m. two working days before the expiry month’s last business day.
- Final settlement is in cash at the FBIL reference rate on expiry day. FBIL, Financial Benchmarks India, has published this rate in place of the Reserve Bank since 2018. Premium-style European options are quoted in rupees. The buyer pays the premium in cash on T+1.
- Daily settlement is on T+1 and final settlement is on T+2.
- NSE Clearing circular 026/2020 sets SPAN margin plus Extreme Loss Margin. The futures margin is 0.50% for USD-INR, 0.15% for EUR-INR, 0.25% for GBP-INR and 0.35% for JPY-INR. A short option has 0.75%. These figures apply from 1 June 2020.
- A USD-INR client may hold 6% of total open interest or USD 20 million, whichever is higher. A trading member may hold 15% or USD 100 million.
- A resident user has one USD 100 million equivalent limit across all rupee pairs and exchanges. No document is needed below that limit, but a valid underlying contracted exposure must still exist. This clarification applies from 3 May 2024.
- The currency segment has no Securities Transaction Tax.
The exam figures (questions, time, pass mark, negative marking and certificate validity) come from NISM's own pages, read on 17 October 2026. Timed practice uses the same figures. Study with the official workbook as well.
The written-out answers on this page are hidden while your timed set runs.
All 24 questions on Strategies Using Futures, with answers
Q1An investor owns a diversified equity portfolio and fears a short-term market fall. Which futures direction is a basic hedge?
Option A. Buy more equity index futures
Why it is wrong: Long futures add positive market exposure.
Option B. Buy more unrelated equity shares
Why it is wrong: Buying more shares does not directly reduce market exposure.
Option C. Sell suitable equity index futures — Correct answer
Option D. Avoid measuring the portfolio's beta
Why it is wrong: Beta helps estimate the portfolio's index sensitivity.
Answer: C. Selling suitable index futures can offset some losses when the underlying portfolio falls. Remember: A long equity portfolio can be hedged with short index futures.
Hint, shown before you answer in practice mode: Common mistake: Choose hedge direction opposite to the exposure. Consider which position gains when markets fall.
XIII-051easyconceptual
Q2An Indian exporter will receive dollars in two months and fears rupee appreciation. Which currency futures position is a basic hedge?
Option A. Sell USD/INR futures — Correct answer
Option B. Buy USD/INR futures
Why it is wrong: Buying USD/INR futures benefits from a rising dollar.
Option C. Buy equity index futures
Why it is wrong: Equity index exposure does not directly hedge USD receipts.
Option D. Sell a rupee-denominated bond
Why it is wrong: Selling a rupee bond does not match the currency exposure.
Answer: A. Selling USD/INR futures can help offset a decline in the rupee value of future dollar receipts. Remember: Dollar receivables are naturally exposed to a weaker dollar.
Hint, shown before you answer in practice mode: Common mistake: Remember whether the business receives or pays dollars. Think about the exporter receiving dollars later.
XIII-052easyapplication
Q3An Indian importer must buy dollars in two months and fears rupee depreciation. Which futures position directly hedges that risk?
Option A. Sell USD/INR futures
Why it is wrong: Selling USD/INR futures loses if the dollar rises.
Option B. Sell an equity index future
Why it is wrong: An equity index hedge is not matched to the currency bill.
Option C. Buy USD/INR futures — Correct answer
Option D. Buy an unrelated long-term bond
Why it is wrong: An unrelated bond does not directly offset the foreign-exchange liability.
Answer: C. Buying USD/INR futures can offset a higher rupee cost of acquiring dollars later. Remember: Dollar payables can be hedged with long dollar exposure.
Hint, shown before you answer in practice mode: Common mistake: Importers and exporters generally need opposite currency hedge directions. Identify what becomes more expensive for the importer.
XIII-053easyapplication
Q4Which statement best describes the goal of speculation using futures contracts?
Option A. Holding futures only to offset an existing commercial liability
Why it is wrong: Offsetting a pre-existing exposure is hedging.
Option B. Buying one asset and simultaneously selling its mispriced equivalent
Why it is wrong: Exploiting a price discrepancy is arbitrage.
Option C. Using only cash instruments without any derivative contract
Why it is wrong: Cash-only investing is not futures speculation.
Option D. Taking price exposure mainly to benefit from an expected market move — Correct answer
Answer: D. Speculation accepts directional market risk in pursuit of profit from price changes. Remember: Speculation deliberately assumes price risk.
Hint, shown before you answer in practice mode: Common mistake: A directional trade is not necessarily a hedge. Focus on the motive behind the position.
XIII-054easyconceptual
Q5What is cash-and-carry arbitrage generally designed to exploit?
Option A. Futures priced too high relative to financed spot ownership — Correct answer
Option B. A guaranteed decline in every underlying share
Why it is wrong: A market-wide decline is not necessary for this arbitrage.
Option C. Different coupon rates across unrelated companies' bonds
Why it is wrong: Unrelated coupon differences do not define spot-futures arbitrage.
Option D. A firm's change in shareholder voting rights
Why it is wrong: Voting rights do not directly create this pricing strategy.
Answer: A. Cash-and-carry can exploit overpriced futures by buying spot exposure and selling futures where feasible. Remember: Cash-and-carry compares futures price with spot plus carry.
Hint, shown before you answer in practice mode: Common mistake: Arbitrage profitability requires accounting for costs and execution. Compare observed futures price with fair carrying cost.
XIII-055easyconceptual
Q6A bond investor fears rising yields will lower bond prices. Which interest-rate futures direction is a typical price hedge?
Option A. Short interest-rate futures with positive bond-price exposure — Correct answer
Option B. Long interest-rate futures with positive bond-price exposure
Why it is wrong: Long bond-price futures generally also lose as yields rise.
Option C. Long equity calls unrelated to bond holdings
Why it is wrong: Equity calls do not directly match rate risk.
Option D. Buy more of the same unhedged bonds
Why it is wrong: Buying more bonds increases rather than hedges rate exposure.
Answer: A. Shorting suitable bond-price futures can offset losses on bond holdings when yields rise. Remember: Hedge a long bond position with opposite price exposure.
Hint, shown before you answer in practice mode: Common mistake: Do not confuse hedging rising yields with betting on falling yields. Think about bond prices when yields rise.
XIII-056easyconceptual
Q7Which position is a long currency futures position?
Option A. An obligation to sell the specified currency exposure at the contract price
Why it is wrong: Selling the contract is a short position.
Option B. Ownership of voting shares in the currency issuer
Why it is wrong: Currencies are not companies with voting shares.
Option C. An obligation to buy the specified currency exposure at the contract price — Correct answer
Option D. A deposit that guarantees interest equal to the future exchange rate
Why it is wrong: A futures contract is not a guaranteed-interest deposit.
Answer: C. A long currency futures position gains from an increase in the quoted currency futures rate. Remember: Long currency futures benefit from a higher quoted rate.
Hint, shown before you answer in practice mode: Common mistake: Do not assume long means holding cash foreign currency today. Distinguish buying a futures contract from selling it.
XIII-057easyconceptual
Q8An equity portfolio is worth ₹50 lakh. One index futures contract has ₹10 lakh notional exposure. With beta 1, how many short contracts approximately hedge it?
Option A. 5 — Correct answer
Option B. 2
Why it is wrong: 2 leaves most market exposure unhedged.
Option C. 10
Why it is wrong: 10 roughly doubles the needed hedge.
Option D. 50
Why it is wrong: 50 confuses lakhs with contract count.
Answer: A. Contracts = ₹50 lakh ÷ ₹10 lakh = 5 short futures contracts. Remember: Hedge quantity follows exposure and contract value.
Hint, shown before you answer in practice mode: Common mistake: Do not ignore contract notional size. Match total market exposure to contract notional.
XIII-058mediumnumerical
Q9A portfolio worth ₹40 lakh has beta 1.5. Each index future represents ₹10 lakh. How many short contracts approximate a beta hedge?
Option A. 4
Why it is wrong: 4 ignores portfolio beta.
Option B. 10
Why it is wrong: 10 overestimates index-equivalent exposure.
Option C. 6 — Correct answer
Option D. 15
Why it is wrong: 15 treats beta as a whole-number lot multiplier.
Answer: C. Required notional = ₹40 lakh × 1.5 = ₹60 lakh. Contracts = 60 ÷ 10 = 6 short contracts. Remember: Use beta-adjusted exposure for an index hedge.
Hint, shown before you answer in practice mode: Common mistake: An index hedge of a high-beta portfolio needs more notional. First adjust portfolio exposure by its beta.
XIII-059mediumnumerical
Q10An exporter sells USD 10,000 in futures at ₹84 per dollar and closes at ₹82. What is the futures gain?
Option A. −₹20,000
Why it is wrong: A falling quote benefits a short USD future.
Option B. ₹20,000 — Correct answer
Option C. ₹2,000
Why it is wrong: ₹2,000 misses a factor of ten.
Option D. ₹8,20,000
Why it is wrong: ₹8,20,000 is not the futures profit.
Answer: B. Gain = (84 − 82) × 10,000 = ₹20,000. Remember: Short dollar futures gain when USD/INR declines.
Hint, shown before you answer in practice mode: Common mistake: Keep dollar contract quantity separate from the quoted rate. For a short position, subtract the closing price from the entry price.
XIII-060mediumnumerical
Q11An importer buys USD 5,000 futures at ₹83 and exits at ₹85. What is the futures gain, ignoring costs?
Option A. ₹10,000 — Correct answer
Option B. −₹10,000
Why it is wrong: −₹10,000 reverses the long payoff.
Option C. ₹2,000
Why it is wrong: ₹2,000 ignores contract quantity.
Option D. ₹4,25,000
Why it is wrong: ₹4,25,000 is exit notional value, not profit.
Answer: A. Long futures gain = (₹85 − ₹83) × USD 5,000 = ₹10,000. Remember: Long currency futures gain when their quote rises.
Hint, shown before you answer in practice mode: Common mistake: Do not confuse gross notional with gain. Consider the difference between entry and exit dollar rates.
XIII-061mediumnumerical
Q12When futures are overpriced versus the cost-of-carry value, what is the conventional cash-and-carry position?
Option A. Sell the spot asset and buy the future
Why it is wrong: Selling spot and buying futures is the reverse direction.
Option B. Buy the spot asset and buy the future
Why it is wrong: Buying both creates directional long exposure.
Option C. Sell the spot asset and sell the future
Why it is wrong: Selling both creates directional short exposure.
Option D. Buy the spot asset and sell the future — Correct answer
Answer: D. Buying spot and selling overpriced futures seeks to lock the positive mispricing after costs. Remember: Cash-and-carry normally sells rich futures against spot holdings.
Hint, shown before you answer in practice mode: Common mistake: Position direction determines whether the spread is captured. Construct opposite positions around the price discrepancy.
XIII-062mediumconceptual
Q13When futures are unusually cheap relative to fair value, which paired trade is called reverse cash-and-carry?
Option A. Sell or short the spot asset and buy futures — Correct answer
Option B. Buy the spot asset and sell the futures contract
Why it is wrong: Buying spot and selling futures targets overpriced futures.
Option C. Buy both spot and futures contracts
Why it is wrong: Buying both adds positive directional exposure.
Option D. Sell both spot and futures contracts
Why it is wrong: Selling both adds negative directional exposure.
Answer: A. Reverse cash-and-carry generally shorts or sells spot exposure and purchases underpriced futures where feasible. Remember: Reverse carry buys relatively cheap futures.
Hint, shown before you answer in practice mode: Common mistake: Short-sale constraints can prevent a theoretical arbitrage. Reverse the usual cash-and-carry positions.
XIII-063mediumconceptual
Q14Why can a currency hedge using futures still produce an imperfect offset?
Option A. Spot and futures changes may not match exactly — Correct answer
Option B. The underlying spot exchange rate must stay fixed
Why it is wrong: The spot exchange rate is not frozen by the futures contract.
Option C. Futures contracts have no expiration date
Why it is wrong: Futures have stated expiries.
Option D. A hedger receives a guaranteed return from clearing
Why it is wrong: Clearing does not guarantee positive returns.
Answer: A. Changes in basis, tenor or hedge size can leave currency exposure partly unhedged. Remember: Hedging effectiveness depends on price co-movement and size.
Hint, shown before you answer in practice mode: Common mistake: A hedge is risk reduction, not guaranteed profit. Consider the difference between hedge and actual exposure.
XIII-064mediumconceptual
Q15A 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?
Option A. ₹1.60
Why it is wrong: ₹1.60 adds both price movements.
Option B. ₹0.60 — Correct answer
Option C. −₹0.60
Why it is wrong: −₹0.60 reverses the net position direction.
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
Q16A fund holds large-cap shares and hedges with index futures. One stock has a major company-specific fall while the index is flat. Which exposure is least protected?
Option A. Broad market index risk
Why it is wrong: Broad index exposure is what the hedge targets.
Option B. Company-specific risk — Correct answer
Option C. General market beta risk
Why it is wrong: Beta reflects sensitivity to broad market changes.
Option D. Overall market direction risk
Why it is wrong: Overall market direction is the intended hedge exposure.
Answer: B. An index futures hedge mainly offsets broad index movement and may not cover company-specific price shocks. Remember: Index hedges are weaker against idiosyncratic stock moves.
Hint, shown before you answer in practice mode: Common mistake: Treating diversified market exposure and single-stock exposure as the same risk. Check whether the hedge tracks the individual stock.
XIII-066mediumapplication
Q17A debt portfolio has ₹20 lakh interest-rate exposure. A suitable futures contract represents ₹5 lakh of comparable exposure. How many short contracts match the notional?
Option A. 4 — Correct answer
Option B. 2
Why it is wrong: 2 covers only half the stated notional.
Option C. 5
Why it is wrong: 5 exceeds the stated notional hedge.
Option D. 20
Why it is wrong: 20 confuses rupee notional with contract count.
Answer: A. Required short contracts = ₹20 lakh ÷ ₹5 lakh = 4. Remember: Notional hedging starts with exposure divided by contract value.
Hint, shown before you answer in practice mode: Common mistake: Duration differences can require further adjustment. Assume the instrument sensitivities are otherwise comparable.
XIII-067mediumnumerical
Q18What risk arises when a bond portfolio and its interest-rate futures hedge respond differently to curve movements?
Option A. Shareholder voting risk
Why it is wrong: Voting risk is not bond yield-curve exposure.
Option B. Guaranteed principal repayment
Why it is wrong: Principal repayment is not a yield-curve risk category.
Option C. Yield-curve spread risk — Correct answer
Option D. A fixed foreign-exchange conversion risk
Why it is wrong: Currency conversion is separate unless currency is involved.
Answer: C. Yield-curve spread risk can arise when yields at the portfolio's and futures' maturities do not move together. Remember: Yield moves at different maturities can diverge.
Hint, shown before you answer in practice mode: Common mistake: Parallel-shift hedges do not cover every curve twist. Think about shifts at different maturities.
XIII-068mediumconceptual
Q19An exporter hedges a dollar receivable with short futures. The rupee weakens unexpectedly before payment. What is the likely hedge trade-off?
Option A. Lower rupee receipts and a futures gain
Why it is wrong: A weaker rupee does not lower rupees received per dollar.
Option B. Higher rupee receipts and a futures loss — Correct answer
Option C. Higher rupee receipts and a futures gain
Why it is wrong: Short dollar futures generally do not gain when USD/INR rises.
Option D. Unchanged rupee receipts and zero futures change
Why it is wrong: The foreign currency receipt remains exposed to spot rates.
Answer: B. A weaker rupee increases rupees obtained for the exporter's dollars, while the short USD/INR futures hedge tends to lose. Remember: A useful hedge can lose when the underlying exposure benefits.
Hint, shown before you answer in practice mode: Common mistake: Judge the combined exposure, not the hedge leg alone. Offset cash-flow improvement against derivative movement.
XIII-069mediumapplication
Q20An equity portfolio is ₹72 lakh with beta 1.25. Each index futures contract is ₹15 lakh. How many short contracts give an approximate beta hedge?
Option A. 5
Why it is wrong: 5 ignores part of the beta-adjusted exposure.
Option B. 6 — Correct answer
Option C. 8
Why it is wrong: 8 overstates the needed futures exposure.
Option D. 9
Why it is wrong: 9 confuses portfolio value and beta adjustment.
Answer: B. Index-equivalent exposure = 72 × 1.25 = ₹90 lakh. Short contracts = 90 ÷ 15 = 6. Remember: Index futures hedge size depends on portfolio beta.
Hint, shown before you answer in practice mode: Common mistake: Never round before accounting for beta. Calculate index-equivalent notional before contract count.
XIII-070hardnumerical
Q21Spot asset costs ₹1,000, three-month fair futures value is ₹1,020, and traded futures price is ₹1,035. Ignoring fees, what is cash-and-carry arbitrage profit per unit?
Option A. ₹20
Why it is wrong: ₹20 is only the implied carry.
Option B. ₹35
Why it is wrong: ₹35 ignores financing costs.
Option C. ₹15 — Correct answer
Option D. ₹55
Why it is wrong: ₹55 adds the carry expense to the price gap.
Answer: C. Profit = observed futures ₹1,035 − fair carry value ₹1,020 = ₹15 per unit, assuming convergence and feasible trading. Remember: Mispricing profit is the difference from fair carry value.
Hint, shown before you answer in practice mode: Common mistake: Do not compare futures only with unfinanced spot cost. Compare traded futures with total financed spot cost.
XIII-071hardnumerical
Q22An importer owes USD 20,000 and buys USD/INR futures at ₹84. At payment, spot is ₹87 and the future closes at ₹86.80. Ignoring costs, what is net rupee payment after hedge gain?
Option A. ₹17,40,000
Why it is wrong: ₹17,40,000 ignores hedge profit.
Option B. ₹16,80,000
Why it is wrong: ₹16,80,000 assumes perfect settlement at the entry futures rate.
Option C. ₹17,96,000
Why it is wrong: ₹17,96,000 adds rather than subtracts the hedge gain.
Option D. ₹16,84,000 — Correct answer
Answer: D. Spot payment = 20,000 × 87 = ₹17,40,000. Futures gain = 20,000 × (86.80 − 84) = ₹56,000. Net = ₹16,84,000. Remember: A currency hedge can have residual basis difference.
Hint, shown before you answer in practice mode: Common mistake: Hedged cost is not always exactly the original futures notional. Calculate the payment at spot, then subtract the futures gain.
XIII-072hardapplication
Q23A bond portfolio has modified duration 6 and value ₹30 lakh. Each futures contract has duration 5 and value ₹6 lakh. Approximately how many short futures hedge first-order duration risk?
Option A. 5
Why it is wrong: 5 considers notional exposure but omits duration differences.
Option B. 10
Why it is wrong: 10 overstates first-order duration hedge size.
Option C. 6 — Correct answer
Option D. 30
Why it is wrong: 30 treats the raw exposure as a contract count.
Answer: C. Portfolio duration exposure = 30 × 6 = 180 lakh-years. Per future = 6 × 5 = 30 lakh-years. Contracts = 180 ÷ 30 = 6. Remember: Duration hedge ratio uses value and sensitivity.
Hint, shown before you answer in practice mode: Common mistake: Two same-notional assets can have different rate sensitivities. Match rupee duration rather than only market value.
XIII-073hardnumerical
Q24A trader buys 1,000 near-month dollar futures at ₹83 and sells 1,000 far-month futures at ₹84. At exit, prices are ₹83.60 and ₹84.20. What is the net rupee gain?
Option A. ₹800
Why it is wrong: ₹800 incorrectly adds absolute changes.
Option B. ₹600
Why it is wrong: ₹600 ignores the far leg.
Option C. ₹200
Why it is wrong: ₹200 counts only one leg's loss magnitude.
Option D. ₹400 — Correct answer
Answer: D. Near long = (83.60 − 83) × 1,000 = ₹600. Far short = (84 − 84.20) × 1,000 = −₹200. Net = ₹400. Remember: Calendar spreads depend on relative price movements.
Hint, shown before you answer in practice mode: Common mistake: Never calculate only the profitable leg of a spread. Net the long and short leg changes.
XIII-074hardnumerical
Strategies Using Futures: common questions
How many practice questions are there on Strategies Using Futures?
24 questions, all written out on this page with the correct answer and why each other option is wrong. This unit is one of the 10 practice topics for NISM Series XIII, which has 150 questions in total.
Are these real NISM Series XIII questions on Strategies Using Futures?
No. LearnNifty wrote every question from NISM's public syllabus. NISM does not publish its question bank, so nobody can offer you the real paper. Use these questions to check that an idea has gone in. Use the official NISM workbook to see what is examined.
Does negative marking apply to NISM Series XIII?
Yes. NISM takes off 25% of a question's marks for a wrong answer. On a 1-mark question that is 0.25 marks off. A blank question earns nothing and loses nothing, so a wrong guess costs marks on this paper. Timed practice here uses the same rule.
Are these practice questions kept up to date?
Each question is written against the rules printed on this page, last checked on 5 September 2026. A Budget or a SEBI circular can change a rate, a lot size or an expiry day. If one of those rules changes before your exam, treat the questions that use it as out of date. Then check NISM's current workbook.
Introduction to Options – Options on Equities and Currencies
22 questions on Introduction to Options – Options on Equities and Currencies. Its quiz opens on that unit.
Open Introduction to Options – Options on Equities and CurrenciesPaper Trading Try it on the practice trading desk