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When is it recommended to buy a call option or sell a put option?

When the market is expected to go down

When the market is expected to remain flat

When the market is expected to go up

When volatility is high

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What type of risk does an option buyer have?

Unlimited risk

Limited risk to the extent of the premium paid

No risk

Moderate risk

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What is the primary focus of most options traders?

Holding options until expiry

Capturing variations in premiums

Predicting long-term market trends

Writing options

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What are the four forces that influence option premiums called?

Market Factors

Option Greeks

Pricing Variables

Volatility Indicators

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What formula uses Option Greeks to determine the price of an option premium?

Black & Scholes Option Pricing Formula

Premium Calculation Formula

Option Valuation Model

Greek Analysis Formula