n NISM Certifications
NSM General NISM
Medium

A trader is very bearish on EURINR and expects it to drop from 75 to 70. He wants to maximize profit. Which strategy is best?

Practice question from NISM Series I - Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Buy Call options

  2. B

    Sell Call options

  3. Buy Put options

    Correct answer

  4. D

    Sell Put options

Why this is the answer

Buying puts profits from strong bearish movement, with limited risk (premium paid).

Test yourself for real

Take a full General NISM mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.