Practice Set - 3 | Practice Set | NISM Series VIII: Equity Derivatives Certification Examination

Question 1

Which factor will increase both call and put premiums?

Question 2

Which of the following has highest risk exposure?

Question 3

Which of the following best describes intrinsic value?

Question 4

Which of the following is true about OTM options at expiry?

Question 5

Which position has payoff similar to insurance?

Question 6

If time to expiry increases, premium will:

Question 7

Which scenario gives maximum profit to a short put?

Question 8

Which scenario gives maximum loss to a long call?

Question 9

If spot = ₹100, strike = ₹100, premium = ₹5, intrinsic value is:

Question 10

If intrinsic value increases but premium remains same, time value will:

Question 11

Which of the following reduces option premium?

Question 12

Which of the following has zero time value at expiry?

Question 13

A call option is deep OTM. Which is true?

Question 14

If premium equals zero, option must be:

Question 15

Which position gains unlimited profit when price rises?

Question 16

Which position benefits from time decay and low volatility?

Question 17

Which option has maximum sensitivity to volatility changes?

Question 18

A trader expects extreme volatility but uncertain direction. Best strategy is:

Question 19

Which strategy profits from no movement in price?

Question 20

A put option has strike ₹300 and premium ₹25. If spot at expiry is ₹260, what is net payoff?

Question 21

Which position benefits most when volatility decreases?

Question 22

If a call option premium increases without change in intrinsic value, it implies:

Question 23

Which position suffers most when price rises sharply?

Question 24

Which of the following is true for European options?

Question 25

Practice Set - 3