Practice Set - 2 | Practice Set | NISM Series VIII: Equity Derivatives Certification Examination

Question 1

A put option with strike ₹150 is trading at ₹20 premium. Break-even point is:

Question 2

Which option will have highest time value?

Question 3

A call option is at-the-money. What is its intrinsic value?

Question 4

If a call option is exercised, the buyer will:

Question 5

If volatility suddenly drops, which position is most negatively affected?

Question 6

Which of the following indicates maximum loss for a short call?

Question 7

A call option has a strike price of ₹100 and premium of ₹10. If spot price at expiry is ₹105, what is the net payoff to the buyer?

Question 8

If an option has zero intrinsic value but positive premium, it must be:

Question 9

Which position has limited loss and limited profit?

Question 10

Which scenario results in maximum profit for a long put?

Question 11

Which of the following positions benefits from time decay?

Question 12

If an option's premium equals its intrinsic value, time value is:

Question 13

Which factor will most significantly increase time value of an option?

Question 14

Which position benefits the most from high volatility with no directional bias?

Question 15

A trader buys a call option expecting large upward movement but market remains stable. The trader will:

Question 16

Which of the following best describes risk-reward for option buyer?

Question 17

Which scenario results in a call option being deep in-the-money?

Question 18

A trader buys a call and a put at same strike and expiry. This strategy is called:

Question 19

Which of the following best describes the payoff of a short put position?

Question 20

Practice Set - 2