Practice Set - 4 | Practice Set | NISM Series VIII: Equity Derivatives Certification Examination

Question 1

Which position has limited loss and unlimited gain?

Question 2

Which option will have zero intrinsic value always before expiry?

Question 3

A trader sells a call option. Maximum gain occurs when:

Question 4

Which option has highest extrinsic value?

Question 5

Which position loses value due to time decay?

Question 6

Which option is least sensitive to volatility?

Question 7

Which of the following is true for deep ITM call?

Question 8

Which scenario results in maximum loss for short put?

Question 9

Which factor causes maximum change in option premium?

Question 10

Which of the following is true about premium?

Question 11

Which position gains when volatility increases suddenly?

Question 12

Which scenario leads to maximum intrinsic value for call?

Question 13

If volatility becomes zero, option value equals:

Question 14

Which position profits when both volatility and time decrease?

Question 15

If premium equals intrinsic value, option is:

Question 16

A call option has strike ₹120 and premium ₹12. If spot at expiry is ₹140, what is net payoff?

Question 17

If spot increases, put option premium will:

Question 18

A trader buys ATM option. Most of premium consists of:

Question 19

A put option has strike ₹500 and premium ₹30. If spot at expiry is ₹480, what is net payoff?

Question 20

Which of the following increases option premium?

Question 21

Which position has maximum risk-reward imbalance?

Question 22

Which option is most sensitive to time decay?

Question 23

Which of the following results in zero payoff for a call buyer?

Question 24

Which of the following is true about intrinsic value?

Question 25

If intrinsic value is zero and premium decreases over time, this is due to:

Question 26

Which option strategy profits when volatility decreases and price is stable?

Question 27

A trader buys a put expecting crash but price rises. Loss will be:

Question 28

Which position benefits from both time decay and stable price?

Question 29

Which position benefits when both volatility and time increase?

Question 30

Which scenario maximizes payoff of long put?

Question 31

Which of the following gives symmetrical payoff?

Question 32

Which of the following is true for OTM put?

Question 33

Which factor increases call premium but decreases put premium?

Question 34

Which option has the least time value?

Question 35

Practice Set - 4