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- Question
What is hedging?
- Correct Answer
- Hedging is a tool to minimize the risks It is thus like an 'insurance' where one pays a premium but gets an assured amount in case of some uncertain event to the extent of the loss actually suffered on an equally opposite position for which the hedge was done Thus, hedger is different from arbitrageur and speculators, as the intention here is not to maximize the profit but to minimize the loss Eg In Capital Markets, suppose an investor has an equity portfolio of Rs 2 lacs and the portfolio consists of all the major stocks of NIFTY He thinks the market will improve in the long run but might go on a downside in the shortrun NIFTY today stands at 4300 To minimize the risk of downfall, he enters into an option contract by buying NIFTY-PUT of strike 4300 at a premium of, say, Rs 100 Thus, the actual amount paid is Rs 5,000(lot size of NIFTY is 50) Also, the number of NIFTY-PUTs to be bought will vary on the beta of the portfolio so as to completely hedge the positon
- 1. How would you automatically transfer your visitors to a new web page? Discuss
- 2. The threshold limit upto which coins can be issued as per the Coinage Act 2011 ?
Options- A. 100
- B. 200
- C. 500
- D. 1000 Discuss
- 3. Cash Reserve Ratio ( CRR) and Stautory Liquidity Ratio (SLR ) are terms most closely related to which of the following industries/markets :
Options- A. Mutual Fund
- B. Income Tax
- C. Stock Exchange
- D. Banking Discuss
- 4. What is the minimum period of time for which one can open an FD(Fixed Deposit) account ?
Options- A. 15 days
- B. 6 months
- C. 7 days
- D. 1 year Discuss
- 5. Which Bank has been given scheduled bank status by RBI ?
Options- A. Disha
- B. Suryoday
- C. Janalakshmi
- D. Ujjivan Discuss
- 6. Which class is used to indicate Black Navigation Bar ?
Options- A. .navbar-inverse
- B. .navbar-black
- C. .navbar-dark
- D. .navbar-default Discuss
- 7. The journal entry to record a credit sale is
Options- A. Accounts Receivable
- B. Accounts Payable
- C. Both A & B
- D. None of the above Discuss
- 8. What is CRR rate? Discuss
- 9. Which among the following are not access Specifiers in C++?
Options- A. Public
- B. Protected
- C. Default
- D. Private Discuss
- 10. In which year, the first bank of India "Bank of Hindustan" was established ?
Options- A. 1677
- B. 1770
- C. 1796
- D. 1831 Discuss
More questions
Correct Answer: - You can do it with the help of meta tag mentioned below:
<META HTTP-EQUIV="Refresh" CONTENT="2"; URL="https://wwwyoursitecom">Place this tag between <HEAD></HEAD> - It will load yousitecom in 2 seconds
Correct Answer: 1000
Correct Answer: Banking
Correct Answer: 7 days
Correct Answer: Ujjivan
Explanation:
Ujjivan Small Finance Bank Ltd, a wholly-owned subsidiary of Ujjivan Financial Services Ltd, has been given scheduled bank status by RBI.
Correct Answer: .navbar-inverse
Explanation:
.navbar-inverse is used to display in black color.
Correct Answer: Accounts Receivable
Explanation:
The journal entry to record a credit sale is Accounts Receivable. Credit sale is nothing butthe customers pay at the time of buying.
Correct Answer: CRR or Cash Reverse Ratio is the amount of money that a commercial bank has to keep with the Reserve Bank of India If the bank increase CRR then the amount with RBI comes down and vice-versa
Correct Answer: Default
Explanation:
Default is the access specifier in java not in C++
Correct Answer: 1770
Explanation:
Among the first banks were the Bank of Hindustan, which was established in 1770 and liquidated in 1829-32.
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