Practice Set - 1 | Practice Set | NISM Series VIII: Equity Derivatives Certification Examination

Question 1

The price paid by the option buyer to the seller is called:

Question 2

If spot price equals strike price, the option is:

Question 3

If the spot price is higher than strike price for a call option, it is:

Question 4

Which type of option can be exercised anytime before expiry?

Question 5

A put option is in the money when:

Question 6

Break-even for a put option buyer is:

Question 7

Which factor does NOT affect option premium?

Question 8

Which of the following is true for option sellers?

Question 9

Which position has unlimited risk?

Question 10

Which of the following is true about option buyer?

Question 11

A call option gives the buyer the right to:

Question 12

Maximum loss for a buyer of an option is limited to:

Question 13

A put option gives the buyer the right to:

Question 14

As expiry approaches, time value of an option:

Question 15

Which type of option can be exercised only at expiry?

Question 16

Which of the following has unlimited profit potential?

Question 17

Higher volatility leads to:

Question 18

Which of the following best describes options?

Question 19

If a call option expires out of the money, its value is:

Question 20

Which of the following is true about option seller?

Question 21

Intrinsic value of a put option is:

Question 22

An option contract gives the buyer the:

Question 23

The seller of an option is also known as the:

Question 24

Break-even for a call option buyer is:

Question 25

Which option position benefits when price falls?

Question 26

Intrinsic value of a call option is:

Question 27

Which of the following benefits from rising volatility?

Question 28

Time value of an option is:

Question 29

The predetermined price at which the option can be exercised is called:

Question 30

Practice Set - 1