NISM Series VIII Equity Derivatives Practice Tests

This course contains the use of artificial intelligence.

A futures hedge can reduce market exposure and still create a cash funding problem. An option can finish in the money and still lose money after premium. These are the distinctions this practice course helps you work through for the NISM-Series-VIII: Equity Derivatives Certification Examination.

The course contains 320 original English single-choice questions across six tests. Five focused sets contain 44 questions each. The sixth test is a 100-question, 120-minute mock, organised with the chapter distribution published in the NISM March 2026 workbook: 10 basics, 5 index, 20 futures, 20 options, 10 strategies, 10 trading, 10 clearing and risk, 5 regulation, 5 accounting and tax, and 5 sales practices and investor protection.

What the questions cover

• Futures contract specifications, basis, carry pricing, convergence, position changes and hedge sizing.
• Call and put moneyness, intrinsic and time value, premium-inclusive profit, pricing models and Greeks.
• Spreads, straddles, strangles, collars, butterflies, put-call parity and delta hedging.
• Order conditions, corporate-action adjustments, market data, algorithm controls and IRRA.
• Clearing roles, daily MTM, physical stock settlement, margins, position limits, cyber resilience and client collateral.
• Indian securities regulation, the stated workbook accounting framework, taxation, client due diligence and complaint routes.

Every question includes an explanation of the correct result and separate feedback for each option. Numerical questions show the relevant units, payoff direction or calculation. Quantities and illustrative financing or haircut assumptions are stated in the question; they are not presented as universal live contract specifications. Regulatory items distinguish current rules from example assumptions, including the April 2026 STT changes and the May 2026 single-stock expiry-day calendar-spread treatment.

How to use the tests

Start with the focused sets and revisit the relevant official workbook section whenever the reasoning is unfamiliar. Before the full mock, practise distinguishing gross cash settlement, trading profit and refundable collateral. Take the mock in one 120-minute sitting and review both incorrect answers and correct guesses.

Scoring matters: NISM's published structure awards one mark for a correct answer, deducts 0.25 for a wrong answer, and requires 60 out of 100. Udemy's displayed percentage does not apply that negative marking. For exam-style scoring, calculate correct answers minus 0.25 times wrong answers; unanswered questions contribute zero. The five shorter sets are learning practice, not official-length simulations.

This is independent preparation and is not affiliated with, endorsed by or an official product of NISM, SEBI or an exchange. It does not contain recalled or leaked examination questions, provide investment or personal tax advice, or guarantee a pass. Rules were checked to 16 October 2026; use the official current examination and market materials for subsequent changes. English is the language of this course; check examination booking information separately for available examination languages.