Question 1
Which scenario causes option premium to increase even when intrinsic value remains unchanged?
Question 2
Which situation leads to maximum confusion in option pricing?
Question 3
If an option is far OTM and close to expiry, its sensitivity to price movement is:
Question 4
A call option has strike 100, premium 15, spot 110 near expiry. What is the approximate net result?
Question 5
An option is ITM but still trading at low premium. What is the most likely reason?
Question 6
A trader expects large movement but is unsure of direction. If volatility is already high, what is the risk?
Question 7
A trader sells an option and observes rising premium despite no price change. What is the likely cause?
Question 8
If a trader buys both call and put (same strike) and market remains stable, the result is:
Question 9
A trader sells options in a highly volatile market expecting stability. The biggest risk is:
Question 10
Which position is most sensitive to sudden volatility spike?
Question 11
A put option is slightly ITM, but near expiry its premium falls rapidly. What explains this?
Question 12
A call option buyer reaches break-even exactly at expiry. What is the payoff?
Question 13
A trader buys a call option expecting a strong price rise, but the price rises slowly while volatility drops. What is the most likely result?
Question 14
If intrinsic value increases but premium decreases, what is happening?
Question 15
A trader buys a deep ITM call option instead of futures. Which risk is reduced?