n NISM Certifications
XXI NISM Series XXI-A
Medium

Which of the following statements about options is true?

Practice question from NISM XXI A for PMS - Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    A call option gives the holder the right to sell an asset at a specified price

  2. B

    A put option gives the holder the right to buy an asset at a specified price

  3. A call option gives the holder the right to buy an asset at a specified price

    Correct answer

  4. D

    Options can only be exercised at maturity

Why this is the answer

Call options confer the right to buy; put options confer the right to sell.

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