What is the primary reason options are considered more complex than futures?

They are influenced by multiple market forces simultaneously. They have a shorter lifespan. They are less liquid. They are not traded on exchanges.

Why did the trader in the CEAT India case study choose to trade options instead of shorting futures?

Options provide higher leverage. Futures have higher margin requirements. Shorting futures carries a higher risk of significant losses. Options are more liquid than futures.

What market phenomenon is exploited in the RBI News Play and Infosys Q2 Results case studies?

Increased volatility around major market events. Decreased liquidity before earnings announcements. Arbitrage opportunities between options and futures. Predictable price movements based on historical data.

What was the primary reason for the decline in Infosys's stock price despite positive Q2 results?

Negative analyst sentiment. Lower than expected earnings per share. A reduction in the company's revenue guidance. General market downturn.

What options trading strategy is referred to as a "Long Straddle"?

Buying both call and put options before a major event. Selling both call and put options before a major event. Buying a call option and selling a put option with the same strike price. Selling a call option and buying a put option with the same strike price.