n NISM Certifications
VIII NISM Series VIII
Medium

The primary benefit of trading index options over individual stock options is _______.

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

Options

  1. A

    Lower premiums

  2. Diversification and reduced risk of individual stock movements

    Correct answer

  3. C

    Higher liquidity in stocks

  4. D

    Guaranteed profits

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

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