n NISM Certifications
NSM General NISM
Medium

If more than one contract in a series are outstanding at the time of expiry/ squaring off, the contract price of the contract so squared off is determined using ______ method for calculating profit/loss on squaring-up.

Practice question from NISM Series I - Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. First-in, First-out (FIFO)

    Correct answer

  2. B

    Last-in, First-out (LIFO)

  3. C

    As per the decision of the Clearing corporation

  4. D

    The Loss making contracts are first squared off

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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