Options Trading Millionaires Test
Indicate whether or not the following is true. "In a short straddle, an investor sells calls and puts with the same maturity but different strike prices on the same stock or index.
Correct!
Wrong!
Assume Nifty is at 4450 on April 27. Mr. Charles, an investor, engages in a short straddle by selling a May 4500 Nifty call for 122 rupees and a May 4500 Nifty put for 85 rupees. What will Mr. Charles' net profit be if the Nifty closes at 5000?
Correct!
Wrong!
Assume that in May, Nifty stands at 4500. Mr. Niel, an investor, executed a short strangle by selling a Rs. 7000 Nifty call for Rs. 43 and a Rs. 4300 Nifty point for Rs. 23 in premium. Give Mr. Neil's break-even point.
Correct!
Wrong!
The risk with the collar strategy is _________.
Correct!
Wrong!
What will a call option's intrinsic value be given that it has an underlying deposit of Rs. 100,000, a strike price of 97.5, and an interest rate of 2.5% per annum?
Correct!
Wrong!
Mr. John shorts ABC Ltd. and invests the same amount in call options on the company. He has come up with a ________ plan.
Correct!
Wrong!
Which markets are a short call condor appropriate for?
Correct!
Wrong!