Options Trading Millionaires Test

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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!

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!

Which markets are a short call condor appropriate for?

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!

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!

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!

The risk with the collar strategy is _________.

Correct! Wrong!

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