n NISM Certifications
XIII NISM Series XIII
Medium

The maximum possible loss for the option buyer is the premium paid, but profits can be higher depending on underlying movement.

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

Options

  1. True for all options

    Correct answer

  2. B

    Only for American options

  3. C

    Only for European options

  4. D

    False for all options

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

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