n NISM Certifications
XIII NISM Series XIII
Medium

Identify the strategy which has a ‘limited potential gain with limited possible loss’.

Practice question from NISM Series XIII for SIF - Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Going short in At-the-money index put and going long in Out-of-the-money index put option, both with the same expiry date

    Correct answer

  2. B

    Going long in index put option

  3. C

    Going short in index call option

  4. D

    Going long in index call option

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

Test yourself for real

Take a full NISM Series XIII mock test.

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