n NISM Certifications
VII NISM Series VII
Medium

The final exercise settlement price of options contracts on individual securities is the closing price on the _______ of the contract.

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

Options

  1. A

    First Trading Day

  2. Last Trading Day

    Correct answer

  3. C

    Previous Trading Day

  4. D

    Penultimate Trading Day

Why this is the answer

The final exercise settlement price is determined by the closing price of the underlying security on the last trading day of the options contract.

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