n NISM Certifications
VII NISM Series VII
Medium

Index options are of two types:

Practice question from NISM Series VII Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Algo and Futures

  2. B

    Futures and Forwards

  3. C

    Futures and Calls

  4. Call and Put

    Correct answer

Why this is the answer

Index options are either Call (right to buy) or Put (right to sell) a specified quantity of the underlying asset at a given price and date.

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