Practice Set - 2 | Practice Set | NISM Series XVI: Commodity Derivatives Certification Examination

Question 1

Which condition reduces option premium fastest?

Question 2

Which of the following is true for option buyer?

Question 3

Which of the following scenarios benefits a put option buyer the most?

Question 4

Which of the following creates maximum loss for option seller?

Question 5

If time to expiry increases, option premium generally:

Question 6

If an option is deep out-of-the-money, its premium mainly consists of:

Question 7

If a call option buyer expects a sharp price rise but the price increases only slightly, the likely outcome is:

Question 8

If an option is at-the-money near expiry, its premium is:

Question 9

Which of the following factors has least impact on option premium?

Question 10

If a trader buys a call option and price falls continuously, the likely result is:

Question 11

A trader sells options expecting no price movement. This strategy depends on:

Question 12

If spot price equals strike price, intrinsic value is:

Question 13

A call option with strike 100 has spot price 120. Intrinsic value is:

Question 14

A put option with strike 100 has spot price 120. Intrinsic value is:

Question 15

If an option expires in-the-money, it will be:

Question 16

An option with zero intrinsic value but positive premium is:

Question 17

Which of the following is true for option seller?

Question 18

If premium is higher than intrinsic value, the difference is:

Question 19

Which of the following scenarios benefits option buyer?

Question 20

Practice Set - 2