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

Question 1

A trader expects sideways market but slight bullish bias. Best strategy:

Question 2

Which strategy offers protection and income simultaneously?

Question 3

Which position suffers maximum when price moves sharply in either direction?

Question 4

Which strategy converts unlimited risk into limited risk?

Question 5

Which strategy is most conservative bearish approach?

Question 6

A trader sells both call and put expecting low volatility. If volatility rises:

Question 7

Which strategy benefits from both time decay and range-bound movement?

Question 8

Which strategy has limited loss and unlimited profit in bearish market?

Question 9

A trader holds stock and buys put while selling call. This is:

Question 10

A trader buys call and sells higher strike call. This limits:

Question 11

A trader sells futures and buys a call option. This strategy primarily:

Question 12

Which strategy gives synthetic short futures position?

Question 13

A trader buys futures and buys call option. This results in:

Question 14

Which strategy is best when expecting extreme movement with limited cost?

Question 15

A trader expects minimal movement. Which strategy yields maximum return?

Question 16

A trader buys put and sells lower strike put. This is:

Question 17

Which of the following has maximum risk exposure in volatile market?

Question 18

Which strategy is most suitable when volatility is expected to decrease?

Question 19

In a bear put spread, maximum loss occurs when:

Question 20

Which strategy requires lowest capital compared to futures for bullish view?

Question 21

A trader expects mild volatility increase but no big move. Best strategy:

Question 22

A trader enters a bull call spread. If price rises significantly above upper strike, profit will:

Question 23

Which strategy has maximum gain when price is exactly between two strikes?

Question 24

A trader sells a put expecting slight rise. Risk arises if:

Question 25

Practice Set - 4