n NISM Certifications
VII NISM Series VII
Medium

After the announcement of the Record Date, no fresh futures and options contracts are introduced on an underlying that will cease to exist post-merger. True or False?

Practice question from NISM Series VII Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. True

    Correct answer

  2. B

    False

Why this is the answer

After the Record Date, new contracts are not introduced. Existing contracts are settled at the settlement price on the last cum-date.

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NISM Series VII Mock Test 2