n NISM Certifications
NSM General NISM
Medium

Mr. Vaibhav writes a call option, premium 65 paise; next day, premium drops to 30 paise with unchanged spot. What explains this?

Practice question from NISM Series I - Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Decrease in volatility

    Correct answer

  2. B

    Increase in volatility

  3. C

    Unexpected fall in inflation

  4. D

    None of the above

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

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