What is the term for the price at which the buyer of a call option can purchase the underlying asset on the expiry date?

"Underlying Price" "Strike Price" "Option Premium" "Option Expiry"

What happens to a call option buyer's investment if the underlying asset's price remains stagnant or decreases?

"The buyer profits from the premium." "The buyer experiences a loss equivalent to the premium paid." "The buyer's investment remains unaffected." "The buyer receives a partial refund of the premium."

When is the only time a call option buyer can exercise their right to buy the underlying asset at the agreed-upon strike price?

"Anytime before the expiry date" "On the day of expiry" "When the underlying price is at its peak" "When the option premium is at its lowest"

What is the term for the price at which the underlying asset is currently trading in the spot market?

"Strike Price" "Option Premium" "Underlying Price" "Option Expiry"

How are options contracts settled in India?

"Physical delivery of assets" "Cash settlement" "Conversion to futures contracts" "Through a barter system"

What is the primary factor that makes options trading attractive to investors?

"Guaranteed returns" "Fixed premiums" "Potential for asymmetric returns" "Absence of risk"

Which of the following is NOT a characteristic of option premiums?

"They are influenced by various factors." "They are fixed rates." "They play a crucial role in option theory." "They fluctuate in real-time market conditions."

What is the term for the act of claiming the right to buy the underlying asset at the strike price on the expiry date?

"Option Settlement" "Option Premium" "Exercising the option contract" "Underlying Price"

What are the three typical expiry options available for options contracts?

"Weekly, Monthly, Yearly" "Current month, Mid-month, Far month" "Short-term, Medium-term, Long-term" "Spot, Futures, Options"

What is the term for the money paid by the option buyer to the option seller for the right to buy the underlying asset?

"Strike Price" "Option Premium" "Underlying Price" "Option Expiry"