Options Trading

What is the likelihood of a Nifty 8700 Call option expiring In the Money (ITM) if there are 30 days to expiry?

• Very high

• High

• Low

• Ultra-low

What is the likelihood of a Nifty 8700 Call option expiring In the Money (ITM) if there are 15 days to expiry?

• Very high

• High

• Low

• Ultra-low

What is the likelihood of a Nifty 8700 Call option expiring In the Money (ITM) if there are 5 days to expiry?

• Very high

• High

• Low

• Ultra-low

What is the likelihood of a Nifty 8700 Call option expiring In the Money (ITM) if there is 1 day to expiry?

• Very high

• High

• Low

• Ultra-low

Tags

CCSS.7.SP.C.5

Why would an option seller not want to sell options?

• Because options have unlimited risk

• Because options have limited reward potential

• Because options have a high likelihood of expiring In the Money (ITM)

• Because options have a low likelihood of expiring In the Money (ITM)

What does the premium of an option consist of?

• Time value only

• Intrinsic value only

• Time value and intrinsic value

• None of the above

What is the intrinsic value of a 8350 CE option if the Nifty spot price is 8423?

• 73

• 0

• Positive value

• Negative value

What is the intrinsic value of a 8450 CE option if the Nifty spot price is 8423?

• 73

• 0

• Positive value

• Negative value

What is the intrinsic value of a 8400 PE option if the Nifty spot price is 8423?

• 73

• 0

• Positive value

• Negative value

What is the intrinsic value of a 8450 PE option if the Nifty spot price is 8423?

• 73

• 0

• Positive value

• Negative value