OPTIONS, FUTURES AND OTHER
DERIVATIVES ACTUAL TEST PAPER 2026
QUESTIONS WITH SOLUTIONS GRADED A+
◉open outcry system. Answer: involves traders physically meeting
on the floor of the exchange, shouting, and using a complicated set of
hand signals to indicate the trades they would like to carry out
◉electronic trading. Answer: involves traders entering their desired
trades at a keyboard and a computer being used to match buyers
and sellers
◉algorithmic trading. Answer: involves the use of computer
programs to initiate trades, often without human intervention
◉over-the-counter market. Answer: a decentralized market without
a central location where market participants trade with one another
through various communication modes such as the telephone,email,
and proprietary electronic trading systems
◉forward contract. Answer: an agreement to buy or sell an asset at a
certain future time for a certain price
, ◉spot contract. Answer: an agreement to buy or sell an asset today
◉long position. Answer: agreement to buy the underlying asset on a
certain specified future date for a certain specified price
◉short position. Answer: agrees to sell the asset on the same date
for the same price
◉future contract. Answer: an agreement between two parties to buy
or sell an asset at a certain time in the future for a certain
◉call option. Answer: gives the holder the right to buy the
underlying asset by a certain date for a certain price
◉put option. Answer: gives the holder the right to sell the
underlying asset by a certain date for a certain price
◉strike price. Answer: the price in the options contract
◉maturity. Answer: date in the options contract
DERIVATIVES ACTUAL TEST PAPER 2026
QUESTIONS WITH SOLUTIONS GRADED A+
◉open outcry system. Answer: involves traders physically meeting
on the floor of the exchange, shouting, and using a complicated set of
hand signals to indicate the trades they would like to carry out
◉electronic trading. Answer: involves traders entering their desired
trades at a keyboard and a computer being used to match buyers
and sellers
◉algorithmic trading. Answer: involves the use of computer
programs to initiate trades, often without human intervention
◉over-the-counter market. Answer: a decentralized market without
a central location where market participants trade with one another
through various communication modes such as the telephone,email,
and proprietary electronic trading systems
◉forward contract. Answer: an agreement to buy or sell an asset at a
certain future time for a certain price
, ◉spot contract. Answer: an agreement to buy or sell an asset today
◉long position. Answer: agreement to buy the underlying asset on a
certain specified future date for a certain specified price
◉short position. Answer: agrees to sell the asset on the same date
for the same price
◉future contract. Answer: an agreement between two parties to buy
or sell an asset at a certain time in the future for a certain
◉call option. Answer: gives the holder the right to buy the
underlying asset by a certain date for a certain price
◉put option. Answer: gives the holder the right to sell the
underlying asset by a certain date for a certain price
◉strike price. Answer: the price in the options contract
◉maturity. Answer: date in the options contract
