n NISM Certifications
XIII NISM Series XIII
Medium

Mr. Manoj is a Nifty trader and feels that Nifty has fallen sharply in the last few days to 17500 levels and should bounce back to 17700 levels over the next week. Which option-based strategy should Mr. Manoj use to back his view?

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

Options

  1. He should take a long position in 17500 call and short position in 17700 call

    Correct answer

  2. B

    He should take a long position in 17500 put and short position in 17100 put

  3. C

    He should take a short position in 17500 call and short position in 17100 call

  4. D

    He should take a short position in 17500 call and long position in 17700 call

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

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