n NISM Certifications
XIII NISM Series XIII
Medium

When a PUT option on an index is exercised, the option holder receives from the option writer:

Practice question from NISM Series XIII for SIF - Mock Test 7 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    A cash amount equal to the excess of spot price over exercise price

  2. A cash amount equal to the excess of exercise price over spot price

    Correct answer

  3. C

    A cash amount equal to spot price

  4. D

    No amount

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

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