๐ NISM Series V-DChapter 17 of 22โ 9 of 150 marks weightage
Ch.17: Strategies using Equity Futures and Equity Options
Practice questions for NISM-Series-VD: Mutual Fund - Specialised Investment Fund Distributors Certification Examination, Chapter 17: Strategies using Equity Futures and Equity Options โ covering hedging and arbitrage with futures, and the full range of option strategies (spreads, straddles, strangles, covered calls, collars, butterflies, protective puts, put-call parity, and delta hedging). Carries 9 out of 150 marks. The exam has 150 MCQs, 60% passing score, and โ10% negative marking per wrong answer.
1
Free sample
41
Qs in full bank
9
Exam Marks
60%
Pass Score
-10%
Neg. Marking
What You Will Learn in This Chapter
Hedging (long/short) and arbitrage (cash-and-carry, reverse, calendar spread) using futures contracts
Vertical, horizontal and diagonal option spreads for bullish and bearish views
Straddles and strangles for volatility-based views, and their risk-reward profiles
Covered calls, collars, butterfly spreads and protective puts โ and why they're called 'synthetic' positions
Put-call parity arbitrage, delta hedging, and interpreting open interest and the put-call ratio
A short straddle position has which risk-return profile?
โLimited profit (capped at premiums received), unlimited loss if the underlying moves sharply in either direction
BUnlimited profit, limited loss
CBoth profit and loss are always zero
DLimited profit and limited loss, like a spread
๐ก A short straddle (selling both a call and put at the same strike) is a limited-profit, unlimited-loss strategy โ profitable if the underlying stays near the strike, but exposed to substantial losses if the market moves significantly in either direction. It should be undertaken with significant care.
40 more questions in this chapter
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About this content: These practice questions are based on the
NISM-Series-VD: Mutual Fund - Specialised Investment Fund Distributors Certification Examination Workbook
published by the National Institute of Securities Markets (NISM), Mumbai (March 2026 edition).
NISM is a SEBI-established institution. Questions cover Chapter 17: Strategies using Equity Futures and Equity Options with verified answers and explanations.
BullWiser is an independent exam preparation platform โ not affiliated with NISM, SEBI or AMFI.
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NISM SERIES V-D
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