Options Trading

What is the likelihood of a Nifty 8700 Call option expiring In the Money (ITM) if there are 30 days to expiry?

• Very high

• High

• Low

• Ultra-low

What is the likelihood of a Nifty 8700 Call option expiring In the Money (ITM) if there are 15 days to expiry?

• Very high

• High

• Low

• Ultra-low

What is the likelihood of a Nifty 8700 Call option expiring In the Money (ITM) if there are 5 days to expiry?

• Very high

• High

• Low

• Ultra-low

What is the likelihood of a Nifty 8700 Call option expiring In the Money (ITM) if there is 1 day to expiry?

• Very high

• High

• Low

• Ultra-low

Why would an option seller not want to sell options?

• Because of unlimited risk

• Because of limited reward potential

• Because of the chance for the option to expire In the Money (ITM)

• Because of time risk

What does the premium for options consist of?

• Time value only

• Intrinsic value only

• Time value and intrinsic value

• None of the above

What is the intrinsic value of a 8350 CE option if Nifty is at 8423?

• 73

• 0

• Negative value

• Cannot be determined

What is the intrinsic value of a 8450 CE option if Nifty is at 8423?

• 73

• 0

• Negative value

• Cannot be determined

What is the intrinsic value of a 8400 PE option if Nifty is at 8423?

• 73

• 0

• Negative value

• Cannot be determined

What is the intrinsic value of a 8450 PE option if Nifty is at 8423?

• 73

• 0

• Negative value

• Cannot be determined