n NISM Certifications
XIII NISM Series XIII
Medium

In exercising a Put option on a stock, the option holder acquires from the option writer:

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

    A short position in the underlying stock

  2. A long position in the underlying stock

    Correct answer

  3. C

    A strangle position in the underlying stock

  4. D

    A butterfly position in the underlying stock

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

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