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

Question 1

A trader sells both call and put at different strikes. This is:

Question 2

Which strategy gives maximum profit when price is exactly at strike?

Question 3

A trader buys a call and sells a futures contract simultaneously. This results in:

Question 4

Which strategy is used for range-bound market with limited risk?

Question 5

Which strategy is most risky in extreme volatility?

Question 6

Which strategy combines two options of same type with different strikes?

Question 7

A trader uses short strangle. Maximum profit occurs when:

Question 8

A trader sells a call and buys a higher strike call. This is called:

Question 9

A trader buys futures and sells a call option. This is similar to:

Question 10

A trader expects moderate rise. Best strategy is:

Question 11

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

Question 12

Which scenario leads to maximum loss in covered call?

Question 13

A trader expects moderate fall. Best strategy is:

Question 14

Which strategy benefits from time decay the most?

Question 15

Which strategy profits when volatility decreases but direction is uncertain?

Question 16

Which strategy gives unlimited loss in rising market?

Question 17

A trader enters a covered call strategy. If the market falls sharply, what is the outcome?

Question 18

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

Question 19

Which strategy creates a synthetic long futures position?

Question 20

Which strategy benefits from sharp movement with lower cost than straddle?

Question 21

Which strategy has maximum loss limited to net premium paid?

Question 22

A trader expects market crash but wants limited loss. Best strategy:

Question 23

Which position behaves like insurance for portfolio?

Question 24

Which position gives symmetric loss potential?

Question 25

Practice Set - 3