📊 NISM Series V-D Chapter 16 of 22 ⚖ 13 of 150 marks weightage

Ch.16: Introduction to Options

Practice questions for NISM-Series-VD: Mutual Fund - Specialised Investment Fund Distributors Certification Examination, Chapter 16: Introduction to Options — covering option basics, contract specs, moneyness, intrinsic/time value, payoff charts, futures-vs-options distinctions, the Option Greeks, pricing models, and implied volatility. Carries 13 out of 150 marks. The exam has 150 MCQs, 60% passing score, and −10% negative marking per wrong answer.

What You Will Learn in This Chapter

Concept of options — calls, puts, and the asymmetric rights/obligations of buyer and seller
Option contract terminology, specifications, and moneyness (ITM, ATM, OTM)
Intrinsic value, time value, and payoff charts for long/short calls and puts
Distinction between futures and options, leverage, and the Option Greeks (Delta, Gamma, Theta, Vega, Rho)
Option pricing models, implied volatility, and analysis from buyer's and seller's perspectives

Key Terms:Call OptionPut OptionStrike PriceIntrinsic ValueTime ValueDeltaGammaThetaVegaImplied Volatility

Free Sample Question

Q1MCQMediumIntrinsic and Time Value

Which types of options have zero intrinsic value?

AOnly in-the-money options

✓At-the-money and out-of-the-money options

CAll options, regardless of moneyness

DOnly options nearing expiry

💡 Only in-the-money options have intrinsic value; at-the-money and out-of-the-money options have zero intrinsic value and consist entirely of time value.

47 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 16: Introduction to Options with verified answers and explanations. BullWiser is an independent exam preparation platform — not affiliated with NISM, SEBI or AMFI. Last updated: July 24, 2026.

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← Ch.15: Introduction to Forwards and Futures Ch.17: Strategies using Equity Futures and Equity Options →