n NISM Certifications
VIII NISM Series VIII
Medium

Mr. Singh bought a call option at Rs 10 per option with a strike price of Rs 140. If the stock price rises to Rs 168 on the expiration date, what will Mr. Singh do?

Practice question from NISM Series VIII - Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Exercise the option

    Correct answer

  2. B

    Not exercise the option

  3. C

    May or may not exercise depending on his bank balance

  4. D

    May or may not exercise depending on expert advice

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

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NISM Series VIII - Mock Test 2