n NISM Certifications
VII NISM Series VII
Medium

_______ give the buyer the right, but not the obligation, to buy a given quantity of an underlying asset at a specified price on or before a future date.

Practice question from NISM Series VII Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Call

    Correct answer

  2. B

    Put

  3. C

    Theta

  4. D

    None of the above

Why this is the answer

A Call Option gives the holder the right, but not the obligation, to buy an underlying asset at a predetermined strike price on or before the expiry date.

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