n NISM Certifications
XIII NISM Series XIII
Medium

If a trader buys a put option with a higher strike price and sells a put option with a lower strike price on the same underlying, this strategy is called:

Practice question from NISM Series XIII for SIF - Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Bullish Spread

  2. Bearish Spread

    Correct answer

  3. C

    Straddle

  4. D

    Butterfly Spread

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.