The given statements are related to financial derivatives. Choose the correct answer for the statements being correct or incorrect.<br>Statement I A speculator will gain, if he sells foreign currency under a forward contract, when the spot price is higher than the forward price.<br>Statement II In currency futures, intra currency spread exists when a speculator buys/sells the same currency for two delivery dates.

A shopkeeper has 11 books of same cost price. He sells the first book at certain price, then he sells second book at a price which is Rs. 1 less than the selling price of first book and then he sells third book at a price which is Rs. 1, less than the selling price of second book. Following this pattern, he sold all 11 books. If he sells sixth book at its cost price. Find the over-all percent profit or loss on selling all 11 books = ?

A

20%

B

10%

C

$$\frac{1}{{11}}$$%

D

No profit no loss

Which of the following statements are correct?
Statement I In a forward market, the delivery and payment takes in future at a predetermined price. The prices are determined today, but the currencies are exchanged in future. Forward market comprises of trade of various instruments however, it is central to the exchange of foreign currency.
Statement II A forward market is an Over-the-Counter market which sets the rate for future delivery of currency, assets or financial securities.

A

Both statements are correct

B

Both statements are incorrect

C

Statement I is correct and Statement II is incorrect

D

Statement II is correct and Statement I is incorrect

The following two statements relate to financial derivatives. Choose the correct answer for statements being correct or incorrect.
Statement I When an option is allowed to be exercised only on the maturity date, it is called an American option.
Statement II If the option holder does not lose or gain whether he exercise his option or buys or sells the asset form the market, the option is said to be at-the-money.

A

Statement I is correct, but Statement II is incorrect

B

Statement II is correct, but Statement I is incorrect

C

Both statements I and II are correct

D

Both statements I and II are incorrect

Which of the following statements are correct?
1. A put option is said to bein the money or favourable for the option holder when the strike price is higher than the spot price.
2. A put option is said to be out of money when the strike price is lower than the market price.
3. Fir an option writer the maximum gain is the amount of premium received by the put option holder.

A

Both 1 and 2

B

Both 1 and 3

C

Both 2 and 3

D

All of the above

Give the correct sequence of steps involved in the process of receiving the supplies in a food service establishment.
1. Quality of ingredients are checked with specifications given to supplier.
2. Counts, weights or volume are checked to tally with amounts of various items on the delivery note.
3. Unacceptable items are returned with the person executing the delivery along with a note on delivery challan stating the items returned.
4. Delivery note is checked with copy of the order placed.
5. Delivery challan is countersigned by the receiving authority and the deliverer of supplies.

A

2, 4, 1, 3, 5

B

4, 2, 1, 3, 5

C

1, 4, 2, 5, 3

D

2, 1, 4, 5, 3

A man sells a bicycle at marked price which is 30% higher than the cost price. If he gives some discount and sells it at Rs. 150 less than the marked price, he would still gain 20%. What is the percentage of discount offered ?

A

7.69%

B

1.83%

C

7.54%

D

7.23%

Which of the following statements are true?
(1) Minor's contract can be ratified on attaining majority.
(2) Minor's contract cannot be ratified on attaining majority.
(3) Minor's contract can be ratified jointly by both the parties to the contract.
(4) Minor is not liable under minor's contract.
(5) Minor's contract is an enforceable contract.

A

1 and 3

B

5 and 2

C

2 and 4

D

2 and 3

E

3 and 4

Assertion (A): A furores contract specifies in advance the exchange rate to be used, but it is not as flexible as a forward contract.
Reason (R): A futures contract is for a specific currency amount and a specific marurity date.

A

(R) is a correct explanation of (A)

B

(R) is not a correct explanation of (A)

C

(A) and (R) are not related to each other

D

(R) is irrelevant for (A)

Which of the following statement is true?
Statement I Cross rate represents when one unit of foreign currency is represented in the terms of another foreign currency.
Statement II Cross rates are determined only with the help of domestic currency and the foreign currency.

A

Both statements are correct

B

Both statements are incorrect

C

Statement I is correct, but Statement II is incorrect

D

Statement II is correct, but Statement I is incorrect

Which of the following statements are not correct in relation to pre-shipment credit in foreign currency?
Statement I It is a foreign currency loan available, both, to the importers and exporters.
Statement II It is self-liquidating in nature and can be liquidated by purchasing/discounting of bills.
Statement III Refinance from RBI is available to banks against pre-shipment credit in foreign currency.
Statement IV The interest rare shall not exceed 1.75% above six months, LIBOR for the initial period of one month.

A

Statements I, II and III are not correct

B

Statements I, III and IV are not correct

C

Statements II and IV are not correct

D

Statements II and III are not correct