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

Question 1

Which strategy gives synthetic short position?

Question 2

A trader expects no movement. Which is most profitable?

Question 3

Which strategy provides downside protection with upside participation?

Question 4

A trader sells a put option. If market crashes, what is the outcome?

Question 5

A trader buys futures and also buys a put option. This combination primarily:

Question 6

Which strategy caps both profit and loss?

Question 7

A trader holds stock and sells a call option. If price rises sharply above strike, what happens?

Question 8

A trader sells a call without owning stock. This position is:

Question 9

A trader expects slight upward movement with low volatility. Best strategy is:

Question 10

Which scenario gives maximum profit in a short put strategy?

Question 11

A trader buys stock and buys put. This results in:

Question 12

In a short straddle, maximum loss occurs when:

Question 13

Which strategy combines unlimited loss potential with limited profit?

Question 14

A trader expects high volatility but no direction. Which is optimal?

Question 15

Which strategy is most risky in highly volatile market?

Question 16

If a trader holds long futures and market falls sharply, best hedge is:

Question 17

Which position has unlimited risk with limited reward in bullish market?

Question 18

Which strategy benefits from both time decay and low volatility but carries high risk?

Question 19

If a trader expects sharp fall, best leveraged strategy is:

Question 20

Practice Set - 2