When a call option on an index is exercised, the option holder will receive from the option writer, cash amount equal to excess of spot price (at the time of exercise) over the strike price of the call option - State True or False?

The intrinsic value is the difference between Market Price and Strike Price of the option and it can never be negative.

The Clearing Corporation guarantees the financial settlement of all trades in the F&O Segment.

_____________ arises from the possiblity of default by one party to the transaction

Can a Clearing Member give 'Fixed Deposits' as part of liquid assets to the Clearing Corporation?

____________ is a process of executing orders utilizing automated and pre-programmed trading instructions.

Losses from derivative transactions can be set off against salary income during the year.

The time value of an option is

In a futures market, the exchange decides all terms of the contract except the _______

The mark-to-market margin debits for stock futures are done on a daily basis but the mark-to-market margin credits are done on a weekly basis - State whether True or False?

An option with a delta of 0.5 will increase in value approximately by how much, if the underlying share price increases by Rs 2?

A long option position has ________ risk and unlimited profit potential.

The Unique Client Code, which is allotted by the broker, is linked to the __________.

Clients’ positions can be netted off against each other while calculating initial margin in the derivatives segment.

State True or False - The mark-to-market of index futures is daily valuation of open positions as per the current market prices.

Speculators take _______ positions in futures to profit from price movements.

A trader believes that the future price of PQR company will rise and being a smart trader he will ________________ .

The normal trading is resumed in a scrip banned in derivatives segment if the open interest __________

At the money option is an _______