n NISM Certifications
XIII NISM Series XIII
Medium

What is a covered call?

Practice question from NISM Series XIII for SIF - Mock Test 9 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    It's a strategy to sell calls at various strike prices to profit from the premium received

  2. It's used to generate extra income from existing holdings in the cash market

    Correct answer

  3. C

    It's a strategy of buying a call and selling its future for hedging

  4. D

    It's done by buying a call and put of the same strike price

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

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