n NISM Certifications
XV NISM Series XV
Medium

Which of the following individuals is entitled to sell an asset at a fixed pre-determined price?

Practice question from NISM XV Mock Test 7 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Call Buyer

  2. Put Buyer

    Correct answer

  3. C

    Call Writer

  4. D

    Put Writer

Why this is the answer

A put option gives the buyer the right (but not obligation) to sell the underlying asset at a predetermined strike price within a specific time frame. The seller (put writer) has the obligation to buy if the option is exercised, but does not have the right to sell. Here’s your set of questions Q52–Q74 formatted exactly in the style you requested, with detailed explanations in paragraph form:

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