n NISM Certifications
XIII NISM Series XIII
Medium

If the price volatility of the underlying stock is high, then the Put option will ______.

Practice question from NISM Series XIII for SIF - Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    have zero premium

  2. B

    have comparatively lower premium

  3. have comparatively higher premium

    Correct answer

  4. D

    Volatility does not have any effect on the Put options

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

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