{"v":1,"topics":[[1,"F&O basics"],[2,"Futures"],[3,"Option basics"],[4,"Premium and pricing"],[5,"The Greeks"],[6,"Volatility and India VIX"],[7,"Option strategies"],[8,"Open interest and option chain"],[9,"Indian F&O rules, STT and margin"],[10,"MWPL and F&O ban"],[11,"Clearing, brokers and SEBI"],[12,"Risk management"]],"q":[[1,"What is a derivative?",["A fixed deposit with a bank","A contract whose value comes from an underlying asset","A share issued by a company","A loan given by a broker"],1,"Futures and options get their value from something else: an index, a share, a commodity or a currency."],[1,"Which of these is not a derivative?",["A stock call option","A Nifty futures contract","A currency swap","An equity share"],3,"A share is the underlying asset itself. The other three are contracts based on an underlying."],[1,"What is the underlying of a Nifty option?",["The shares of NSE Ltd","The India VIX","The Nifty 50 index","Bank Nifty futures"],2,"Nifty options are written on the Nifty 50 index, so their value follows the index."],[1,"Who regulates equity derivatives trading in India?",["The Ministry of Corporate Affairs","SEBI","RBI","IRDAI"],1,"SEBI regulates the securities market, including equity futures and options on NSE and BSE."],[1,"Equity futures and options in India trade on:",["Stock exchanges such as NSE and BSE, through registered brokers","The RBI trading platform","Only between banks, over the counter","Directly with SEBI"],0,"Exchange-traded derivatives are bought and sold on NSE or BSE through SEBI-registered brokers."],[1,"Hedging means:",["Buying only deep OTM options","Doubling a position after a loss","Trading without a stop-loss","Taking a position that offsets the risk of an existing one"],3,"A hedger already has risk, such as a share portfolio, and uses derivatives to reduce it."],[1,"A trader with no existing exposure buys Nifty futures because she expects the index to rise. She is:",["Writing a covered call","Hedging","Doing arbitrage","Speculating"],3,"She takes on risk to profit from an expected move, which is speculation."],[1,"Arbitrage means:",["Holding a position until it recovers","Profiting from a price gap for the same asset in two places with little or no risk","Buying the most active strike","Selling options every week"],1,"An arbitrageur buys where it is cheap and sells where it is dear at the same time, locking in the gap."],[1,"How is a futures contract different from a forward contract?",["Futures have no expiry date","Forwards are always cash settled on an exchange","Futures are standardised and exchange traded; forwards are customised and private","Futures cannot be closed before expiry"],2,"Exchange futures have fixed lot sizes and expiries and a clearing corporation behind them. Forwards are negotiated one to one."],[1,"In exchange-traded derivatives, counterparty risk is handled mainly by:",["The buyer's bank","SEBI paying any losses","The clearing corporation, which guarantees settlement","The company whose shares are traded"],2,"The clearing corporation steps in between buyer and seller and manages margins so that trades settle."],[1,"Novation means:",["A contract is rolled to the next month","The clearing corporation becomes the buyer to every seller and the seller to every buyer","An option is converted into a future","A trade is cancelled after expiry"],1,"After novation you no longer depend on the original counterparty; your obligation is with the clearing corporation."],[1,"Leverage in F&O means:",["The exchange guarantees a profit","Brokers lend you shares for free","You can never lose more than you put in","A small margin controls a large contract value, so gains and losses are magnified"],3,"With futures and option selling, a move against you can cost far more than the margin you posted."],[1,"You are \"long\" a contract when you have:",["Bought it and gain if the price rises","Held it for more than a month","Exercised it early","Sold it and gain if the price falls"],0,"Long means bought. A long futures or long call position gains when the underlying rises."],[1,"You are \"short\" a futures contract when you have:",["Let it expire without trading","Bought it from a short seller","Bought it and gain if the price rises","Sold it first and gain if the price falls"],3,"A short position is opened by selling and profits if the price falls before you buy it back."],[1,"Squaring off a position means:",["Closing it with an opposite trade","Converting it into delivery","Adding one more lot","Moving it to the next expiry"],0,"If you bought, you sell the same contract; if you sold, you buy it back."],[1,"Open interest is:",["The number of contracts still open that have not been closed or settled","The interest rate charged on margin","The number of contracts traded today","The total premium paid by buyers"],0,"Open interest rises when new positions are created and falls when positions are closed."],[1,"How is trading volume different from open interest?",["Volume counts contracts traded in a period; open interest counts contracts still outstanding","Open interest counts trades, volume counts open positions","Volume is only for options; open interest only for futures","They are the same number"],0,"A contract can be traded many times in a day while open interest changes only when positions are created or closed."],[1,"In an options contract, who has an obligation?",["The seller (writer)","Both buyer and seller equally","Only the exchange","The buyer"],0,"The buyer has a right. The seller must honour it if the option is exercised."],[1,"What does an option buyer pay to the seller?",["The premium","A daily interest charge","The full contract value","The strike price"],0,"The premium is the price of the option, paid upfront by the buyer."],[1,"Before costs, derivatives are often called a zero-sum game because:",["Nobody pays taxes on them","Every trader makes the same profit","Prices always return to zero","One side's gain is the other side's loss"],3,"For every long there is a short. Costs and taxes make the total negative for traders as a group."],[1,"The contract value of a futures position is:",["Premium × strike","Futures price × lot size × number of lots","Lot size ÷ price","Margin × lot size"],1,"For example, one Nifty lot of 65 at 23,000 has a contract value of ₹14,95,000."],[1,"Mark to market (MTM) on futures means:",["Gains and losses are settled every day at the closing price","Margin is returned every evening","Profit is paid only at expiry","The broker sets your price"],0,"Each day your futures position is revalued and the difference is credited or debited to your account."],[1,"Basis is:",["Strike minus premium","Futures price minus spot price","Open interest minus volume","Spot price minus strike"],1,"Basis is usually positive for Nifty futures and shrinks to zero by expiry."],[1,"The bid price is:",["The previous day's close","The last traded price","The highest price a buyer is currently willing to pay","The lowest price a seller will accept"],2,"The ask (offer) is the lowest price a seller will accept. The gap between them is the spread."],[1,"A wide bid-ask spread on a far OTM strike mainly means:",["Lower risk for the buyer","Higher trading cost and harder exits","The strike has the highest open interest","The option is sure to expire in the money"],1,"Illiquid strikes cost more to enter and exit because you cross a large spread."],[1,"Index derivatives in India such as Nifty futures and options are settled:",["Only in physical gold","By delivery of all 50 shares","In cash","By delivery of an ETF"],2,"You cannot deliver an index, so index contracts are cash settled."],[1,"What does the expiry date of a contract mean?",["The day trading in the share stops","The last day the contract exists, after which it is settled","The day margin is refunded in full","The day a new lot size starts"],1,"On expiry open positions are settled and the contract ceases to exist."],[1,"Which order type guarantees the price but not the fill?",["Market order","Stop-loss market order","Limit order","Square-off order"],2,"A limit order fills only at your price or better, so it may not fill at all."],[1,"Which order type gives a fill quickly but can suffer slippage in thin options?",["Cover order with a limit","Good-till-cancelled limit order","Limit order","Market order"],3,"A market order takes whatever price is available, which can be far from the last price in illiquid strikes."],[1,"A stop-loss order is used to:",["Guarantee a profit","Exit automatically when the price reaches a level you set","Increase position size on a dip","Avoid paying margin"],1,"It limits loss if the market moves against you, though gaps can fill it at a worse price."],[2,"A long Nifty futures position makes money when:",["Time passes","Nifty rises","Nifty falls","Volatility rises"],1,"Futures move almost one for one with the underlying."],[2,"Futures profit or loss per lot is:",["(Buy price − sell price) ÷ lot size","Premium × lot size","Margin × number of days","(Sell price − buy price) × lot size"],3,"Multiply the points gained or lost by the lot size and the number of lots."],[2,"The fair price of an index future using cost of carry is roughly:",["Spot × e^(−r × t)","Spot − dividends × lot size","Strike + premium","Spot × e^((r − q) × t)"],3,"Interest raises the forward price and dividend yield lowers it, over the time left to expiry."],[2,"When futures trade above spot, the market is in:",["Ban period","Contango","Pin risk","Backwardation"],1,"Contango is the usual state for Nifty futures because interest cost is higher than dividend yield."],[2,"When futures trade below spot, the market is in:",["Backwardation","Novation","Rollover","Contango"],0,"It can happen near large dividends or when there is heavy selling pressure in futures."],[2,"At expiry, the basis of a futures contract:",["Doubles","Stays the same as on day one","Becomes equal to the lot size","Converges to zero"],3,"On the final day futures settle at the underlying price, so futures and spot meet."],[2,"Rolling over a futures position means:",["Closing the current month and opening the same position in the next month","Converting it into an option","Selling half the lots","Adding margin to avoid a call"],0,"Traders who want to keep a view beyond expiry roll it to the next contract."],[2,"The rollover cost of a long futures position is mainly:",["The exchange penalty for late rolling","The full premium of an ATM option","The margin of both months added","The price difference between the next-month and current-month futures"],3,"If next month trades higher, a long pays that spread to roll forward."],[2,"Why do Nifty futures usually trade above the spot index?",["Spot prices are delayed","SEBI fixes a premium on futures","Futures always include a broker fee","The interest cost of carrying the position is higher than the dividend yield"],3,"This positive cost of carry is why far-month futures usually trade higher still."],[2,"A large dividend expected before expiry makes the fair price of a stock future:",["Unchanged in all cases","Lower","Exactly equal to the strike","Higher"],1,"The share price is expected to fall by the dividend, so the future prices that in."],[2,"The main purpose of initial margin on futures is to:",["Replace the need for MTM","Earn interest for the trader","Cover the loss the position could suffer in a bad day","Pay the seller in advance"],2,"Margin is a safety deposit, not a payment; MTM is settled separately each day."],[2,"If your long futures position loses money today, you:",["Receive extra margin from the exchange","Must convert it to an option","Pay nothing until expiry","Pay the MTM loss, which is debited from your account"],3,"Daily MTM means losses are collected and gains credited every day."],[2,"A fund holding a diversified portfolio fears a market fall. Using index futures, it should:",["Buy more shares","Sell Nifty futures","Sell call options of single stocks only","Buy Nifty futures"],1,"Short index futures gain when the market falls and offset the portfolio's loss."],[2,"To hedge a portfolio with a beta of 1.2 using index futures, the futures value sold should be about:",["Half of the portfolio value","Portfolio value ÷ 1.2","Portfolio value × 1.2","Exactly equal to the portfolio value"],2,"A higher-beta portfolio moves more than the index, so it needs more futures to hedge."],[2,"Compared with buying shares, a long stock futures position:",["Pays dividends to you directly","Gives voting rights","Has an expiry and needs margin and daily MTM","Has no risk of loss"],2,"Futures give price exposure only, for a limited time, with margin and MTM."],[2,"A futures calendar spread is:",["Two futures of different companies","Long one expiry and short another expiry of the same underlying","Long futures and long put at the same strike","Buying futures every calendar month"],1,"It bets on the change in the price gap between months, not on direction."],[2,"What happens to an open stock futures position held into expiry in India?",["It is cancelled with no settlement","It is physically settled: shares are delivered or received","It is always cash settled at zero","It automatically rolls to next month"],1,"Stock derivatives are physically settled, so a long future becomes a purchase of shares."],[2,"Cash-and-carry arbitrage is done when futures are expensive. It involves:",["Buying futures in two months","Buying the stock and selling its futures","Buying calls and puts together","Selling the stock and buying its futures"],1,"You lock in the gap and deliver or square off near expiry."],[2,"In futures, price rising with open interest rising is usually read as:",["Short build-up","Short covering","Long build-up","Long unwinding"],2,"New buyers are entering, adding fresh long positions."],[2,"Price falling with open interest rising is usually read as:",["Short build-up","Long build-up","Short covering","Long unwinding"],0,"Fresh shorts are being added as the price falls."],[2,"Price rising with open interest falling is usually read as:",["Long build-up","Short build-up","Long unwinding","Short covering"],3,"Shorts are buying back, which pushes the price up while positions close."],[2,"Price falling with open interest falling is usually read as:",["Short covering","Long unwinding","Long build-up","Short build-up"],1,"Existing longs are selling out of their positions."],[2,"The delta of a long futures position is close to:",["−1","+1 per unit of the underlying","+0.5","0"],1,"Futures move almost point for point with the underlying."],[2,"Do futures lose value from time decay the way bought options do?",["Yes, faster than options","Only on Mondays","Yes, by 1% a day","No, they have no theta from optionality; only the basis changes"],3,"Futures carry no time value of an option. The basis slowly shrinks to zero."],[2,"What is the maximum loss on a short futures position in theory?",["The margin posted","The premium received","Unlimited, because the price can keep rising","Zero, because of MTM"],2,"A short future loses as the price rises, with no cap."],[2,"A long call and a short put at the same strike and expiry create:",["A synthetic long future","A straddle","A synthetic short future","A covered call"],0,"Together they gain and lose almost exactly like a long futures position."],[2,"Margins on futures usually go up when:",["Open interest falls","Trading volume drops","Market volatility rises","The contract nears its start date"],2,"Risk-based margin systems use larger price scenarios when volatility is high."],[2,"Open futures positions at expiry settle at:",["The final settlement price set by the exchange","The previous month's price","Any price the broker chooses","The price you bought at"],0,"Every open position is marked to the final settlement price on expiry day."],[2,"Which is a common reason to roll Nifty futures a few days before expiry?",["SEBI forbids holding futures in the last week","Futures stop trading a week before expiry","The lot size changes every week","Liquidity moves to the next month and the trader wants to keep the view"],3,"Volumes shift to the next contract near expiry, so traders roll to keep tight spreads."],[2,"A trader buys 1 lot of Nifty futures at 23,000 and sells at 23,100 (lot 65). Before costs she makes:",["₹100","₹65","₹6,500","₹65,000"],2,"100 points × 65 = ₹6,500."],[3,"A call option gives the buyer:",["The right to sell at the strike","The right, but not the obligation, to buy at the strike","The obligation to sell at the strike","The obligation to buy at the strike"],1,"Call means right to buy. The buyer pays a premium for it."],[3,"A put option gives the buyer:",["The obligation to sell at the strike","The obligation to buy at the strike","The right, but not the obligation, to sell at the strike","The right to buy at the strike"],2,"Put means right to sell. It gains when the underlying falls."],[3,"On NSE option chains, CE and PE stand for:",["Closing Entry and Previous Entry","Contract Equity and Premium Equity","Call Exchange and Put Exchange","Call European and Put European"],3,"The labels come from European-style options; CE is a call and PE is a put."],[3,"With Nifty at 23,000, the 22,800 call is:",["In the money","At the money","Out of the money","Expired"],0,"A call is ITM when the strike is below spot."],[3,"With Nifty at 23,000, the 22,800 put is:",["In the money","At the money","Out of the money","Deep in the money"],2,"A put is ITM only when its strike is above spot."],[3,"The at-the-money (ATM) strike is:",["The strike chosen by the exchange each week","The strike closest to the current price of the underlying","The strike with the highest premium","The lowest strike on the chain"],1,"With Nifty at 23,010 the 23,000 strike is ATM."],[3,"Intrinsic value of a call is:",["Always equal to the premium","Spot − strike, or zero if that is negative","Premium − strike","Strike − spot"],1,"It is what the call would be worth if exercised now."],[3,"Intrinsic value of a put is:",["Always zero before expiry","Premium + strike","Strike − spot, or zero if that is negative","Spot − strike"],2,"It is what the put would be worth if exercised now."],[3,"Time value of an option is:",["Premium − intrinsic value","Premium + intrinsic value","Strike − premium","Days to expiry × lot size"],0,"Everything you pay above intrinsic value is time value."],[3,"At expiry, the time value of every option is:",["Equal to the strike","Doubled","Zero","Equal to the premium paid"],2,"At expiry an option is worth only its intrinsic value."],[3,"The maximum loss for an option buyer is:",["The strike price","The premium paid","The margin of an option seller","Unlimited"],1,"A buyer can lose only what was paid for the option."],[3,"The maximum loss for a seller of a naked call is:",["Zero","The strike price","The premium received","Unlimited in theory"],3,"If the underlying keeps rising, the short call keeps losing."],[3,"The maximum profit for a seller of an option is:",["The premium received","Unlimited","Twice the premium","The strike price"],0,"The best case is that the option expires worthless and the seller keeps the premium."],[3,"The maximum loss on a short put, before costs, is:",["Spot + strike","Strike − premium received, if the underlying goes to zero","Unlimited, if the underlying rises","The premium received"],1,"A put seller loses as the price falls, with the floor at zero."],[3,"A European-style option can be exercised:",["Only when it is out of the money","Only on the first day","Any day before expiry","Only at expiry"],3,"Index options in India are European style."],[3,"An American-style option can be exercised:",["At any time up to expiry","Never","Only at expiry","Only after expiry"],0,"Many US stock options are American style; Indian index options are European."],[3,"When an option seller is assigned, it means:",["The seller can choose a new strike","The trade is cancelled","The seller receives extra premium","The buyer has exercised and the seller must settle"],3,"Assignment turns the seller's obligation into a settlement."],[3,"On expiry, NSE treats in-the-money index options as:",["Converted into futures","Expired worthless","Exercised automatically and settled in cash","Rolled to next week"],2,"ITM index options are exercised automatically; OTM ones expire worthless."],[3,"An out-of-the-money option at expiry is worth:",["Its premium","Its time value","Half its strike","Nothing"],3,"It has no intrinsic value and no time left."],[3,"What is the strike price?",["The closing price on expiry","The price you pay for the option","The price at which the buyer can buy (call) or sell (put) the underlying","The margin per lot"],2,"The premium is the option's price; the strike is the contract price for the underlying."],[3,"A deep in-the-money call behaves most like:",["Cash","A long futures position","A short put far OTM","A long straddle"],1,"Its delta is close to 1, so it moves almost point for point with the underlying."],[3,"A covered call means:",["Holding the underlying and selling a call against it","Selling a call without owning anything","Buying two calls at different strikes","Buying a call and a put"],0,"The stock covers the obligation if the call is exercised."],[3,"A protective put means:",["Holding the underlying and buying a put to limit downside","Selling two puts","Selling a put without holding shares","Buying a call and selling a put"],0,"It works like insurance: the put gains if the shares fall."],[3,"An option chain shows:",["Prices, open interest, volume and IV for calls and puts across strikes of one expiry","A list of brokers","The index constituents","Only the last traded price of futures"],0,"Calls are usually on the left, puts on the right, strikes in the middle."],[3,"Why are far OTM options cheap?",["They need a big move to have any value at expiry","They are guaranteed to expire ITM","The exchange subsidises them","They have no lot size"],0,"Low premium reflects a low chance of finishing in the money, not a bargain."],[3,"Who must post margin in an options trade?",["Only the exchange","The seller","Neither","The buyer"],1,"Buyers pay the premium in full; sellers post margin because their loss can be large."],[3,"Buying a call is a bet that:",["The underlying rises above strike + premium before or by expiry","Volatility falls sharply","The underlying falls below strike","The underlying stays flat"],0,"Above the breakeven the long call makes money at expiry."],[3,"Buying a put is a bet that:",["The underlying falls below strike − premium by expiry","Volatility stays the same","The underlying rises above strike","Time passes quickly"],0,"A long put profits at expiry below its breakeven."],[3,"An option's premium in rupees for one lot is:",["Premium points × lot size","Strike × lot size","Premium points ÷ lot size","Strike − premium"],0,"A 120-point premium on a lot of 65 costs ₹7,800."],[3,"Selling a call and buying the underlying shares together is called:",["A protective put","A long strangle","A covered call","A naked call"],2,"It earns premium while holding the shares, but caps the upside at the strike."],[4,"Which factor does not affect an option's premium?",["Implied volatility","The buyer's age","Time to expiry","Spot price"],1,"Spot, strike, time, volatility, interest rates and dividends drive the price."],[4,"If time to expiry increases and all else stays the same, option premiums usually:",["Rise","Turn negative","Become zero","Fall"],0,"More time gives more chance of a favourable move, so time value is higher."],[4,"For the same expiry, which option usually has the most time value?",["A far OTM option","A deep ITM option","An expired option","The at-the-money option"],3,"Uncertainty about finishing ITM is greatest at the money."],[4,"Time decay of an option speeds up:",["Only for ITM options","As expiry gets closer","Never; it is constant","In the first week after listing"],1,"Theta is largest in the final days, especially for ATM options."],[4,"Which pricing input is not seen on screen and is backed out from the market price?",["Implied volatility","Strike price","Time to expiry","Spot price"],0,"Plug the market price into the model and solve for volatility: that is IV."],[4,"The Black-Scholes model mainly needs:",["Open interest and volume","Only spot and strike","Last week's highs and lows","Spot, strike, time, volatility, interest rate and dividend yield"],3,"These inputs give the theoretical value of a European option."],[4,"If implied volatility rises and nothing else changes:",["Both call and put premiums rise","Both fall","Calls rise and puts fall","Calls fall and puts rise"],0,"Higher volatility raises the value of every option."],[4,"If the underlying price rises and nothing else changes:",["Calls lose and puts gain","Both lose","Calls gain value and puts lose value","Both gain"],2,"A call is the right to buy, so it gains as the price rises."],[4,"For calls of the same expiry, a higher strike means:",["A higher premium","A negative premium","A lower premium","The same premium"],2,"The right to buy at a higher price is worth less."],[4,"For puts of the same expiry, a higher strike means:",["A higher premium","A lower premium","No change","Zero premium"],0,"The right to sell at a higher price is worth more."],[4,"Put-call parity links call and put prices of the same strike and expiry with:",["The forward price of the underlying and the strike","The trader's margin","Open interest at that strike","The bid-ask spread"],0,"Call − put equals the present value of (forward − strike)."],[4,"Ignoring interest and dividends, put-call parity says call − put equals:",["Strike − spot","Spot − strike","Spot + strike","Zero always"],1,"So an ATM call and put cost about the same when carry is ignored."],[4,"Higher interest rates, all else equal, tend to:",["Lower call premiums and raise put premiums","Have no effect on either","Raise call premiums and lower put premiums","Raise both"],2,"Higher rates push the forward price up, which favours calls."],[4,"An expected dividend before expiry, all else equal, tends to:",["Lower call premiums and raise put premiums","Make both zero","Raise both","Raise call premiums"],0,"The share is expected to drop by the dividend."],[4,"A call premium can never be more than:",["The put premium","The strike","The price of the underlying","Its intrinsic value"],2,"Nobody would pay more for the right to buy than for the asset itself."],[4,"A deep in-the-money option's premium is mostly:",["Intrinsic value","Brokerage","Time value","Margin"],0,"Its time value is small because the outcome is fairly certain."],[4,"A far out-of-the-money option's premium is:",["All time value","Fixed by the exchange","Half intrinsic and half time value","All intrinsic value"],0,"OTM options have zero intrinsic value."],[4,"Why can the same strike trade at different prices for different expiries?",["Only one expiry is real","Longer expiries have more time value","Each expiry has a different lot size","Exchanges set prices by month"],1,"More time means more chance of a move, so further expiries cost more."],[4,"Two options have the same strike and expiry but different implied volatility in their prices. The one with higher IV is:",["Cheaper","Always in the money","Exactly the same price","More expensive"],3,"Price and IV move together; quoting IV is a way of saying how expensive an option is."],[4,"What happens to a bought ATM option's value on a flat day in the last week, other things equal?",["It stays the same","It becomes deep ITM","It gains value","It loses value from time decay"],3,"Theta works against buyers every day the market does not move."],[4,"The \"fair value\" from a pricing model tells you:",["The price at which it will trade tomorrow","A guaranteed profit target","The exchange's fixed price","What the option is worth under the model's assumptions"],3,"Markets price options with their own expectations, so market and model can differ."],[4,"A synthetic long call can be built with:",["Short call + long futures","Short futures + short put","Long futures + long put of the same strike","Long call + long put"],2,"Long future + long put has the payoff of a long call (parity)."],[4,"Why are OTM Nifty puts usually priced at higher IV than equally distant OTM calls?",["Demand for crash protection creates a put skew","Calls cannot be exercised","The exchange adds a tax on puts","Puts have bigger lot sizes"],0,"Markets fall faster than they rise, so traders pay more for downside protection."],[4,"Extrinsic value is another name for:",["Margin","Strike","Time value","Intrinsic value"],2,"Extrinsic value is the part of the premium above intrinsic value."],[4,"Which option usually loses the most value per day from time decay near expiry?",["A deep ITM option","An option with 6 months left","An at-the-money option","A far OTM option"],2,"ATM options carry the most time value, so they lose the most as it melts."],[4,"If an option is quoted at 0.05 on expiry morning, far OTM, it most likely means:",["The market sees almost no chance of it finishing ITM","It is deep in the money","It is a bargain sure to rise","The exchange has frozen it"],0,"Cheap far OTM options on expiry day usually expire worthless."],[4,"The premium of an option is quoted:",["Only in dollars","For the whole lot","In index points or rupees per unit of the underlying","As a percentage of margin"],2,"Multiply by the lot size to get the rupee cost of one lot."],[4,"A conversion (long futures + long put + short call, same strike) has a payoff that is:",["Unlimited on the downside","Exactly like a long call","Unlimited on the upside","Locked in, whatever the underlying does"],3,"It is an arbitrage structure; the result is known on entry."],[4,"A box spread (a bull call spread plus a bear put spread on the same strikes) pays at expiry:",["The sum of the premiums","Zero always","The difference between the two strikes","Unlimited profit"],2,"It is a fixed payoff, so it should trade near the discounted strike gap."],[4,"If the market price of an option is above the model value, a trader using that model would say the option is:",["Fairly priced","Rich (expensive)","Cheap","Expired"],1,"Implied volatility above the trader's forecast is another way to say rich."],[5,"Delta measures:",["How fast gamma changes","How much the price changes when IV moves 1 point","How much the option loses each day","How much the option price changes for a 1-point move in the underlying"],3,"A delta of 0.5 means the option moves about 0.5 points for each 1-point move in the underlying."],[5,"The delta of a long call lies between:",["0 and +1","+1 and +2","−1 and 0","−1 and +1 only at expiry"],0,"Calls gain when the underlying rises, so their delta is positive and at most 1."],[5,"The delta of a long put lies between:",["+1 and +2","0 and +1","It is always exactly −0.5","−1 and 0"],3,"Puts gain when the underlying falls, so their delta is negative."],[5,"An at-the-money call usually has a delta close to:",["0","1","−0.5","0.5"],3,"It has roughly even odds of finishing in the money."],[5,"A deep in-the-money call has a delta close to:",["0.5","0","−1","1"],3,"It moves almost point for point with the underlying."],[5,"A far out-of-the-money call has a delta close to:",["1","0","0.5","−1"],1,"Small moves in the underlying barely change its price."],[5,"Gamma measures:",["How much delta changes for a 1-point move in the underlying","How much premium changes with IV","How much premium changes with interest rates","How much premium is lost per day"],0,"Gamma is the rate of change of delta."],[5,"Gamma is highest for:",["Far OTM options with months left","Futures","Deep ITM options with months left","At-the-money options close to expiry"],3,"Near expiry, a small move can flip an ATM option between ITM and OTM."],[5,"A long option position (call or put) has gamma that is:",["Positive","Negative","Zero","Equal to delta"],0,"Buyers gain delta in the direction the market moves, which is positive gamma."],[5,"A short straddle has:",["Zero gamma","Negative gamma and positive theta","Positive gamma and negative theta","Positive vega"],1,"Sellers collect time decay but lose when the market moves sharply."],[5,"Theta measures:",["How much delta changes","The change in premium for a 1% IV move","The sensitivity to interest rates","How much an option loses in value each day, all else equal"],3,"Theta is time decay."],[5,"For an option buyer, theta is usually:",["Zero until expiry day","Negative: the position loses value as time passes","Positive","Equal to vega"],1,"Buyers pay for time; sellers collect it."],[5,"Theta of an at-the-money option is largest:",["On the day it is listed","When IV is zero","In the last days before expiry","When it is deep ITM"],2,"Time decay accelerates as expiry approaches."],[5,"Vega measures:",["The change per 1-point move in the underlying","How much delta changes per day","How much the option price changes for a 1-point change in implied volatility","The effect of dividends"],2,"Long options have positive vega: they gain when IV rises."],[5,"Which option has the most vega?",["An at-the-money option with more time to expiry","An expired option","A far OTM option expiring today","A deep ITM option expiring today"],0,"Vega is larger for ATM options and grows with time to expiry."],[5,"Rho measures sensitivity to:",["Volatility","Interest rates","Time","Dividends only"],1,"Rho is small for short-dated index options."],[5,"A position with delta close to zero is called:",["Gamma neutral","Vega neutral","Theta positive","Delta neutral"],3,"It does not gain or lose much from small moves in the underlying at that moment."],[5,"To make a long call position delta neutral, a trader can:",["Sell futures in proportion to the call's delta","Buy puts with zero delta","Buy futures","Buy more calls"],0,"Short futures offset the call's positive delta."],[5,"Position delta of a portfolio is:",["The average delta of all strikes on the chain","The sum of each leg's delta × quantity, with signs for long and short","The delta of the biggest leg only","Always zero for spreads"],1,"Add up the deltas of every leg, including direction."],[5,"A long straddle (long ATM call + long ATM put) starts with a delta of about:",["+2","−1","Zero","+1"],2,"The call's +0.5 and the put's −0.5 roughly cancel."],[5,"Gamma scalping means:",["Scalping futures without options","Buying options only on expiry day","Selling far OTM options every day","Holding long options and trading the underlying to re-hedge delta as the price moves"],3,"Positive gamma lets the trader buy low and sell high while re-hedging; theta is the cost."],[5,"If a call has delta 0.40 and the underlying rises 50 points, the call gains roughly:",["40 points","2 points","50 points","20 points"],3,"0.40 × 50 = 20 points, ignoring gamma and time."],[5,"The delta of a short call is:",["Positive","Zero","Negative","Always +1"],2,"A short call loses when the underlying rises."],[5,"The delta of a short put is:",["Negative","Always −1","Positive","Zero"],2,"A short put gains when the underlying rises."],[5,"Which Greek tells you how much your position loses overnight if nothing moves?",["Theta","Vega","Gamma","Delta"],0,"Theta is the daily decay, all else equal."],[5,"A trader is long a calendar spread (sold near expiry, bought far expiry, same strike). Her vega is usually:",["Positive","Zero","Equal to theta","Negative"],0,"The longer-dated option she owns has more vega than the one she sold."],[5,"Delta is sometimes read as a rough estimate of:",["The days left to expiry","The option's margin","The lot size","The chance that the option finishes in the money"],3,"It is only an approximation, but a 0.20 delta option is often seen as about a 20% chance."],[5,"As expiry approaches, the delta of an in-the-money call tends to move towards:",["−1","1","0","0.5"],1,"With little time left, an ITM call behaves more and more like the underlying."],[5,"Which pair of Greeks usually trade off against each other for option sellers?",["Positive theta and negative gamma","Positive delta and positive vega","Rho and dividends","Negative theta and negative gamma"],0,"Sellers earn decay but are hurt by large moves."],[5,"If IV falls by 2 points and an option has vega 10, its price changes by about:",["−20 points","−10 points","+20 points","−2 points"],0,"Vega × change in IV = 10 × −2 = −20."],[6,"Implied volatility is:",["A fixed number set by NSE","The volatility the market is pricing into an option, backed out from its price","The volatility of the last 20 days","The change in open interest"],1,"IV comes from the option price itself."],[6,"Historical (realised) volatility is:",["The volatility of open interest","How much the underlying actually moved over a past period","The IV of the ATM call","The market's forecast in option prices"],1,"It is calculated from past price changes, usually annualised."],[6,"India VIX measures:",["The average PE ratio of Nifty","The number of shares traded on NSE","Last month's Nifty return","The expected volatility of Nifty over the next 30 days, from Nifty option prices"],3,"NSE computes it from the order book of Nifty options."],[6,"When Nifty falls sharply, India VIX usually:",["Rises","Becomes zero","Falls","Stays fixed"],0,"Fear raises demand for options, especially puts, and pushes IV up."],[6,"IV crush refers to:",["A sharp fall in implied volatility after an expected event such as results","A rise in IV after results","A fall in the underlying price","Exchange cutting the lot size"],0,"Option buyers can lose even if they get the direction right, because IV collapses."],[6,"Why can a call buyer lose money even when the stock rises a little after results?",["IV falls after the event and time decay eats the premium","Calls lose when stocks rise","The exchange cancels profits","Brokers charge extra on results day"],0,"The move must be big enough to beat the drop in IV and decay."],[6,"High implied volatility generally means option premiums are:",["Higher, which favours sellers if the move does not come","Lower","Equal to intrinsic value","Free"],0,"Sellers receive more premium when IV is high, but they also take bigger risk."],[6,"The expected one standard deviation move by expiry is roughly:",["IV ÷ spot","Spot × IV × days","Spot × IV × √(days ÷ 365)","Strike × theta"],2,"With Nifty 23,000, IV 14% and 30 days this is about 891 points."],[6,"A volatility smile or skew means:",["All strikes have the same IV","IV differs across strikes of the same expiry","Volatility is always rising","IV is the same across expiries"],1,"For Nifty, OTM puts usually carry higher IV than OTM calls."],[6,"Volatility term structure compares IV across:",["Different strikes","Different stocks","Different brokers","Different expiries"],3,"Near-term IV often jumps before events while far expiries move less."],[6,"Volatility tends to be:",["Always falling","Mean reverting: very high or very low IV tends to move back towards normal","Always rising","Constant for each stock"],1,"This is why traders compare current IV with its own history."],[6,"IV percentile or IV rank tells you:",["The broker's margin","The exact future move","The lot size","Where today's IV sits compared with its range over a past period"],3,"It helps judge whether options are cheap or expensive for that underlying."],[6,"A trader expects volatility to rise but has no view on direction. A fitting trade is:",["A long straddle or long strangle","A short straddle","A short iron condor","A covered call"],0,"Long options have positive vega and gain from a big move."],[6,"A trader expects volatility to fall and the market to stay in a range. A fitting trade is:",["Buying deep OTM calls","An iron condor or short strangle (with defined risk preferred)","A long straddle","A long strangle"],1,"Short premium trades gain from falling IV and time decay, but need risk control."],[6,"If IV is 20% for a 30-day option, the market is pricing a one standard deviation move over 30 days of roughly:",["20% of spot","30% of spot","0.2% of spot","5.7% of spot"],3,"20% × √(30 ÷ 365) ≈ 5.7%."],[6,"Event days such as Budget or RBI policy often see:",["IV drop before the event","IV build up before the event and drop after it","No change in IV","Options stop trading"],1,"Uncertainty is priced in before the news and released after it."],[6,"Which statement about historical and implied volatility is right?",["Implied volatility is calculated from past prices","Historical volatility is set by SEBI","Selling options pays off over time only if realised volatility tends to come in below implied","They are always equal"],2,"The gap between IV and what actually happens is the edge sellers and buyers fight over."],[6,"A long vega position gains when:",["The lot size changes","Implied volatility rises","Implied volatility falls","Time passes"],1,"Long options are long vega."],[6,"Why are weekly options on expiry day so jumpy?",["The lot size doubles","Gamma is very high and little time value is left","There is no bid-ask spread","Vega is at its highest"],1,"Small moves cause large changes in price and delta in the final hours."],[6,"India VIX at 12 compared with 25 suggests the market expects:",["Nifty will fall 25%","Nifty will rise 12%","Bigger swings in Nifty","Calmer movement in Nifty"],3,"VIX is about the expected size of moves, not their direction."],[6,"Skew in Nifty options usually shows:",["Higher IV on OTM puts than on equally distant OTM calls","Higher IV on OTM calls","Identical IV across strikes","IV only on ATM strikes"],0,"Demand for crash protection makes downside options more expensive."],[6,"Selling options just because IV is \"high\" is risky because:",["Sellers have unlimited protection","IV can go higher still and realised moves can exceed what was priced","High IV guarantees a profit","High IV removes margin needs"],1,"High premium comes with high risk; size and hedge accordingly."],[6,"Volatility is usually quoted:",["As a number of contracts","In days","In rupees per lot","As an annualised percentage"],3,"Scale it by the square root of time to get a move for a shorter period."],[6,"Which is true about IV for different strikes in a strong rally?",["Only puts have IV","IV can never change during a rally","Call IV can rise when traders chase upside, changing the skew","IV is fixed by the exchange each morning"],2,"The skew shifts with supply and demand for each strike."],[6,"Realised volatility over the last month was 10% and IV is 18%. Options look:",["Expensive relative to recent movement","Untradeable","Exactly fair","Cheap relative to recent movement"],0,"This compares IV with past movement; it does not say what will happen next."],[7,"A bull call spread is built by:",["Buying a call and a put at the same strike","Buying a lower-strike call and selling a higher-strike call, same expiry","Selling a lower-strike call and buying a higher-strike call","Selling two calls"],1,"It is a moderately bullish debit spread with capped profit and loss."],[7,"The maximum loss on a bull call spread is:",["The width of the strikes","Unlimited","The net premium paid","Zero"],2,"Both legs expiring worthless loses only the net debit."],[7,"The maximum profit on a bull call spread is:",["Strike width − net premium paid","The higher strike","Unlimited","The net premium paid"],0,"Above the higher strike the spread is worth its full width."],[7,"A bear put spread is built by:",["Buying a lower-strike put and selling a higher-strike put","Selling a put and buying a call","Buying a higher-strike put and selling a lower-strike put, same expiry","Buying two puts at the same strike"],2,"It is a moderately bearish debit spread."],[7,"A bull put spread is:",["Buying two calls","Buying a higher-strike put and selling a lower-strike put","Selling a call and a put","Selling a higher-strike put and buying a lower-strike put, for a net credit"],3,"It profits if the market stays above the short put."],[7,"The maximum loss on a credit spread is:",["Zero","Strike width − net credit received","The net credit received","Unlimited"],1,"The bought leg caps the loss at the width minus what you collected."],[7,"A bear call spread suits a trader who expects:",["The market to stay below the short call strike","A big move either way","Volatility to explode","A strong rally"],0,"It is a credit spread that profits from a flat or falling market."],[7,"A long straddle is:",["Buying a call and a put at the same strike and expiry","Buying a call and selling a put","Selling a call and a put at the same strike","Buying a call and a put at different strikes"],0,"It profits from a large move in either direction."],[7,"A long straddle has how many breakeven points at expiry?",["One","None","Four","Two"],3,"Strike + total premium and strike − total premium."],[7,"A short straddle profits most when:",["The underlying moves sharply up","Volatility jumps","The underlying finishes exactly at the strike","The underlying moves sharply down"],2,"Both options expire with the least intrinsic value at the strike."],[7,"The maximum loss on a naked short straddle is:",["The strike width","Unlimited on the upside and large on the downside","The premium received","Zero"],1,"With no bought legs, the risk is open-ended."],[7,"A long strangle is cheaper than a long straddle because:",["It has a smaller lot size","It uses deep ITM options","It uses out-of-the-money options","It needs no premium"],2,"OTM options cost less, but the market needs a bigger move to profit."],[7,"An iron condor is made of:",["A long call and a long put at the same strike","Two long straddles","A bull put spread plus a bear call spread on the same expiry","Four bought calls"],2,"It is a defined-risk range trade."],[7,"An iron condor makes its maximum profit when the underlying at expiry is:",["Exactly at the bought put strike","Between the two short strikes","Above the highest strike","Below the lowest strike"],1,"All four options then expire with the seller keeping the net credit."],[7,"Compared with a short strangle, an iron condor:",["Needs a bigger move to profit","Has unlimited risk","Has no time decay","Has limited risk because of the bought wings, and needs less margin"],3,"The wings cap the loss in exchange for some of the premium."],[7,"A long call butterfly (buy 1 low, sell 2 middle, buy 1 high strike) makes the most money when the underlying expires:",["Far below the low strike","Anywhere, profit is constant","At the middle strike","Far above the high strike"],2,"It is a cheap bet that the market pins near one level."],[7,"A calendar spread (sell near expiry, buy far expiry, same strike) benefits mainly from:",["A huge move in the underlying","A fall in far-month IV","Faster decay of the near-month option and a rise in IV","Exercise before expiry"],2,"It wants the market near the strike while the short leg decays."],[7,"A ratio spread such as buy 1 call, sell 2 higher calls carries:",["Risk only on the downside","Risk limited to the premium paid","No risk at all","Uncapped risk if the market rallies far past the short strikes"],3,"The extra short call is naked above the strikes."],[7,"A collar on a stock holding means:",["Holding only cash","Holding the stock, buying a put and selling a call","Selling the stock and buying a call","Buying two puts"],1,"The call premium pays for part of the put; upside and downside are both capped."],[7,"Which strategy has limited loss and unlimited profit?",["Short straddle","Short call","Bull put spread","Long call"],3,"The buyer risks only the premium."],[7,"Which strategy has limited profit and unlimited loss?",["Long put","Short call","Bull call spread","Long call"],1,"The seller earns only the premium but faces open-ended risk."],[7,"Which strategy gains from time decay and loses from a big move?",["Long straddle","Long strangle","Long call","Short strangle"],3,"Short premium positions have positive theta and negative gamma."],[7,"Which strategy gains from a big move and loses from time decay?",["Long straddle","Iron condor","Covered call","Short straddle"],0,"Long premium positions have negative theta and positive gamma."],[7,"A covered call caps the holder's upside at:",["Unlimited","The call strike plus the premium received","Zero","The stock's purchase price"],1,"Above the strike the shares are effectively sold at the strike."],[7,"A synthetic short futures position is:",["Long call + long put","Short call + short put","Short call + long put at the same strike and expiry","Long call + short put"],2,"It gains and loses like short futures."],[7,"A risk reversal (buy OTM call, sell OTM put) expresses:",["A bearish view","A pure volatility view with no direction","A bullish view at low or zero net cost","A neutral range view"],2,"The short put pays for the call but adds downside risk."],[7,"Before the expiry of a credit spread, the main risk if the market moves through the short strike is:",["You lose only the bought leg's premium","The loss grows towards the maximum and you may face assignment on expiry","There is no risk","The exchange refunds the loss"],1,"Manage or exit before the spread reaches max loss."],[7,"An iron butterfly is:",["A long ATM straddle","Buying four OTM options","Two bull call spreads","A short ATM straddle with bought OTM wings on both sides"],3,"It collects more premium than an iron condor but needs the market to stay closer to one strike."],[7,"Why do traders buy the protective wings before selling the short legs when placing an iron condor?",["The exchange requires it","Wings cannot be bought later","It lowers margin and avoids being naked even for a moment","It always gets a better price"],2,"Placing hedges first keeps risk defined throughout."],[7,"Which strategy best suits a strongly bullish view with limited capital and limited risk?",["Buying a put","A short straddle","Selling a naked call","Buying a call or a bull call spread"],3,"Both have capped loss; the spread costs less but caps the gain."],[7,"A protective put on a portfolio is similar in payoff to:",["A short call","A long call","A short put","A short future"],1,"Stock plus put behaves like a call (parity)."],[7,"A diagonal spread uses:",["Different strikes and different expiries","The same strike and the same expiry","Only puts at one strike","Only futures"],0,"It mixes a vertical spread and a calendar spread."],[7,"A box spread's value at expiry is:",["Equal to the net premium paid","The difference between its two strikes, whatever the market does","Zero","Unlimited"],1,"It is a fixed payoff used for arbitrage or financing."],[7,"The breakeven of a long put at expiry is:",["Spot − strike","Strike − premium paid","Premium × lot size","Strike + premium paid"],1,"Below that level the put makes money."],[7,"The breakeven of a long call at expiry is:",["Strike + premium paid","Strike − premium paid","Spot + strike","Premium ÷ lot size"],0,"Above that level the call makes money."],[7,"A short put is roughly equivalent in risk to:",["A long call","A long straddle","A covered call","A long put"],2,"By put-call parity, short put ≈ long stock + short call."],[7,"Adjusting a losing short strangle by rolling the tested side means:",["Adding another short leg at the same strike","Converting it into futures","Doing nothing until expiry","Closing the threatened short leg and selling a new one further away"],3,"Rolling moves the short strike away from the market, often for less credit."],[7,"A trade with no cap on its loss should be sized by:",["The margin only","The premium collected only","Its stress loss, not by the premium collected","Gut feeling"],2,"Premium is the best case; risk is what decides the size."],[7,"Which is a defined-risk way to sell premium on Nifty?",["A naked short call","A naked short straddle","A naked short strangle","An iron condor"],3,"Bought wings cap the loss."],[7,"A long call spread and a short put spread with the same strikes together create:",["A short straddle","A long strangle","A calendar spread","A synthetic long position with capped risk, similar to a box component"],3,"Combining verticals changes the payoff shape; check net Greeks before trading."],[8,"Put-call ratio (PCR) based on open interest is:",["ATM put price ÷ ATM call price","Call OI ÷ put OI","Total put open interest ÷ total call open interest","Put volume − call volume"],2,"A PCR above 1 means more put OI than call OI."],[8,"A very high PCR is often read by contrarians as:",["A sign of low volatility","A sign that bearishness is crowded, which can precede a bounce","A guarantee that the market will fall","A reason the exchange stops trading"],1,"PCR is a sentiment gauge, not a signal on its own."],[8,"A strike with very high call open interest often acts as:",["The final settlement price","A support level","A ban trigger","A resistance level, because call writers defend it"],3,"Writers who sold those calls lose if the market goes above, so they may defend it."],[8,"A strike with very high put open interest often acts as:",["The expiry date","The lot size","A support level, because put writers defend it","A resistance level"],2,"Put writers lose below their strike."],[8,"\"Max pain\" is the strike at which:",["IV is highest","Option buyers as a group would lose the most at expiry","Option writers would lose the most","Futures stop trading"],1,"It is a theory that prices drift there near expiry; it is not reliable on its own."],[8,"Rising open interest in calls along with a falling Nifty usually suggests:",["No change in positions","Call writing (fresh short calls)","Short covering","Call buying by bulls"],1,"Writers add calls when they expect the market to stay below."],[8,"A fall in open interest at a strike means:",["Positions at that strike are being closed","Volume is zero","New positions are being added","The strike was removed"],0,"OI drops when longs and shorts close their trades."],[8,"On an option chain, LTP stands for:",["Lowest trading price","Last traded price","Limit trade price","Lot trading price"],1,"It is the price of the most recent trade."],[8,"Change in OI on an option chain shows:",["How much open interest has increased or decreased during the day","The change in premium","The change in lot size","The change in IV"],0,"It tells you where fresh positions are being built or closed."],[8,"Why should you check volume as well as open interest?",["Volume is not shown for options","OI is only for futures","They are always equal","Volume shows today's activity and liquidity; OI shows positions still open"],3,"High OI with tiny volume can mean an old position in an illiquid strike."],[8,"Futures rollover percentage near expiry indicates:",["The lot size of the next month","The STT rate","How much of the expiring open interest has moved to the next month","The total profit of traders"],2,"High rollover suggests traders want to keep their positions."],[8,"A sudden jump in volume and OI in far OTM calls of a stock before news can suggest:",["A stock split","Speculative or informed bets on a big upside move","A guaranteed rally","That the exchange will ban the stock"],1,"Unusual activity is a clue to investigate, not a reason to copy."],[8,"Which data on the option chain helps judge if an option is expensive?",["Lot size","Strike number","Implied volatility","Contract name"],2,"Compare IV across strikes and with its own history."],[8,"The \"spot\" shown above an index option chain is:",["The futures price","The current level of the index","The ATM strike","The VIX value"],1,"Moneyness is judged against the spot (or the forward for precise work)."],[8,"OI data on NSE for options is usually updated:",["During the day, at intervals, not tick by tick","Only after expiry","Never","Once a month"],0,"Traders read intraday OI changes, knowing they lag slightly."],[8,"Why can PCR be misleading on its own?",["Puts are also bought as hedges by investors, so high put OI does not always mean bearish bets","PCR uses futures only","Calls cannot be sold","PCR is never calculated"],0,"Context such as who holds the OI matters."],[8,"Long build-up in a stock's futures means:",["Price down and OI up","Price up and OI down","Price up and open interest up","Price down and OI down"],2,"Fresh longs are entering."],[8,"Short covering in a stock's futures means:",["Price up and open interest down","Price down and OI up","Price up and OI up","Price down and OI down"],0,"Shorts buying back push the price up while OI falls."],[8,"If both put and call OI build up heavily at the same strike near expiry, the market often:",["Gets a new lot size","Moves sharply away from it","Stays near that strike as writers on both sides defend it","Stops trading"],2,"This is one reason pinning near big strikes is common on expiry."],[8,"Why is the ATM strike usually the most liquid?",["It has the smallest lot size","It has the lowest premium","It has the most two-way interest from buyers, sellers and hedgers","The exchange forces trading there"],2,"Liquidity tends to be highest near the money and thins out far OTM."],[8,"The bid-ask spread on the option chain matters because:",["It only matters for futures","It is set by SEBI","You pay it every time you enter and exit, which is a real cost","It is refunded at expiry"],2,"Wide spreads make frequent trading expensive."],[8,"What does an OI-based support or resistance level not tell you?",["Whether the level will actually hold","Which strikes are crowded","Where positions are changing","Where writers are positioned"],0,"Writers can be forced to exit, so levels break."],[8,"A bearish trader sees call OI building at the 23,500 strike with Nifty at 23,300. A common reading is:",["Call buyers are sure of a rally","The strike will be delisted","Nifty must close above 23,500","Writers expect 23,500 to cap the upside this expiry"],3,"It is a probability read, not a certainty."],[8,"Implied volatility shown separately for calls and puts at the same strike should be:",["Always very different","Zero for puts","Equal to the strike","Close to each other, because of put-call parity"],3,"Large gaps usually come from stale prices or wide spreads."],[8,"Why do traders watch India VIX alongside the option chain?",["It lists banned stocks","It tells the exact direction of Nifty","It shows the lot size","It summarises how expensive Nifty options are overall"],3,"VIX rises when IVs across the chain rise."],[9,"What is the lot size of Nifty 50 options for contracts from January 2026?",["65","25","75","50"],0,"NSE revised it to 65 in its circular of 3 October 2025."],[9,"On which weekday do Nifty 50 weekly options expire (since September 2025)?",["Wednesday","Thursday","Tuesday","Friday"],2,"NSE moved its weekly and monthly index expiries to Tuesday."],[9,"Under SEBI's October 2024 rules, how many weekly index expiries can each exchange offer?",["Five indices","Three indices","No limit","One benchmark index"],3,"That is why NSE kept weekly options only on Nifty 50."],[9,"Which NSE index kept its weekly options after SEBI's one-weekly-expiry rule came in?",["Bank Nifty","Nifty 50","Midcap Nifty","Fin Nifty"],1,"Bank Nifty, Fin Nifty and Midcap Nifty now have monthly contracts only."],[9,"SEBI's October 2024 package set the minimum value of a new index derivative contract at introduction at:",["₹1 lakh","₹50 lakh","₹15 lakh","₹5 lakh"],2,"Lot sizes are fixed so that one contract is worth at least ₹15 lakh when set."],[9,"Since the SEBI package of 2024, an option buyer must pay the premium:",["Upfront, before the trade","Only if the option ends in the money","In 10 instalments","At expiry"],0,"Brokers collect the full premium upfront and cannot fund it with intraday leverage."],[9,"On expiry day, short index options attract an extra extreme loss margin (ELM) of:",["10%","Nothing extra","2%","0.5%"],2,"SEBI added the 2% ELM to cover the jumpy last day."],[9,"On the expiry day of a contract, the calendar spread margin benefit for that expiring leg is:",["Applied only to buyers","Removed","Unchanged","Doubled"],1,"Positions with an expiring leg are margined as if the leg stood alone on that day."],[9,"From 1 April 2026, STT on selling an option is:",["0.15% of the premium","0.05% of the premium","0.15% of the contract value","1% of the premium"],0,"Budget 2026-27 raised it from 0.1%."],[9,"From 1 April 2026, STT on selling futures is:",["0.02% of the traded value","0.15% of the traded value","Nothing","0.05% of the traded value"],3,"Budget 2026-27 raised it from 0.02%."],[9,"If an option you bought is exercised at expiry, STT is charged on:",["The full contract value at 1%","The premium you paid","Nothing, exercise is free","The intrinsic value, at 0.15%"],3,"Exercised options pay STT on intrinsic value, which is why many traders square off before expiry."],[9,"SEBI's September 2024 study found what share of individual F&O traders lost money between FY22 and FY24?",["93%","50%","70%","25%"],0,"It covered more than 1 crore individual traders."],[9,"Stock options in India that end in the money at expiry are settled by:",["Rolling to the next month","Physical delivery of shares","Cancellation","Cash only"],1,"A long ITM call becomes a purchase of shares, so keep funds ready or close it before expiry."],[9,"Nifty 50 options are:",["European style and physically settled","European style and cash settled","American style and cash settled","American style and physically settled"],1,"They can be exercised only at expiry and settle in cash."],[9,"Margins on F&O positions in India are mainly made of:",["Only brokerage","A fixed ₹10,000 per lot","SPAN margin plus exposure margin","Only STT"],2,"The clearing corporation computes both; your broker collects them."],[9,"Profit and loss on futures is settled every day through:",["Mark-to-market (MTM) settlement","Annual settlement","Only at expiry","A quarterly cheque"],0,"Each day the position is valued at the closing price and the difference moves in cash."],[9,"For income tax, F&O trading profits of an individual are generally treated as:",["Salary income","Capital gains","Non-speculative business income","Tax-free income"],2,"Traders file under business income, keep books where required and can claim expenses. Check with a tax adviser."],[9,"Regular trading hours for equity F&O on NSE are:",["24 hours","10 am to 5 pm","9:15 am to 3:30 pm","9 am to 11:30 pm"],2,"Commodity derivatives on MCX trade into the evening; equity F&O does not."],[9,"Which body regulates the securities and derivatives market in India?",["PFRDA","IRDAI","SEBI","RBI"],2,"Exchanges and clearing corporations work under SEBI's rules."],[9,"Index option strikes are listed:",["Only one strike per expiry","Chosen by each trader","At fixed intervals around the current level, such as 50 points for Nifty","Only at round thousands"],2,"NSE adds new strikes as the index moves."],[9,"Why did SEBI raise the minimum contract size in 2024?",["To reduce small speculative bets that were causing heavy losses among retail traders","To stop institutions from hedging","To make options cheaper","To remove weekly options entirely"],0,"The study of retail losses was a key reason for the package."],[9,"A trader buys a Nifty call and holds it. Which statement about margin is right?",["The buyer pays SPAN margin and premium","The buyer pays nothing upfront","The buyer pays only the premium; no SPAN margin is blocked","The buyer pays the full contract value"],2,"Selling options or trading futures blocks margin; buying blocks only the premium."],[9,"Pledged shares used as collateral for F&O margin must usually be backed by:",["Nothing, shares can cover 100%","Mutual fund NAV only","Cash or cash equivalents for at least half the margin","Gold only"],2,"The 50:50 cash-collateral rule applies to most F&O margin."],[9,"Which of these is NOT part of the cost of an F&O trade?",["Brokerage","STT","Exchange transaction charges and GST","The option's delta"],3,"Delta is a sensitivity, not a cost."],[9,"When a stock is in the F&O ban period, a trader holding futures in it can:",["Not exit until the ban ends","Add any number of fresh positions","Reduce or close the position but not add to it","Only buy more futures"],2,"The ban stops new positions that would increase open interest."],[10,"MWPL stands for:",["Market Wide Position Limit","Maximum Weekly Profit Limit","Monthly Writer Position Limit","Margin Weighted Position Level"],0,"It caps how big the total F&O position in a stock can get across the market."],[10,"MWPL applies to:",["Government bonds","Mutual funds","Single-stock derivatives","Nifty 50 index options only"],2,"Stocks with F&O contracts each have their own MWPL."],[10,"From 1 October 2025, MWPL for a stock is set at:",["20% of total shares, fixed for ever","The lower of 15% of free float and 65 times the average daily delivery value (in quantity), with a floor of 10% of free float","5% of the promoter holding","Whatever the broker decides"],1,"NSE Clearing circular 119/2025 sets this formula under SEBI's circular of 29 May 2025."],[10,"How often is a stock's MWPL recalculated under the October 2025 rules?",["Only when the stock splits","Every day","Once in five years","Every quarter"],3,"It uses the previous three months of delivery data and applies for the next three calendar months."],[10,"A stock enters the F&O ban when its market-wide open interest (futures equivalent) at end of day goes above:",["50% of MWPL","80% of MWPL","100% of MWPL","95% of MWPL"],3,"The ban starts from the next trading day."],[10,"Once a stock is in the ban, normal trading resumes when combined open interest across exchanges falls to or below:",["95% of MWPL","80% of MWPL","100% of MWPL","60% of MWPL"],1,"The gap between 95% and 80% stops a stock from going in and out of ban every day."],[10,"Since October 2025, open interest for the ban is measured as:",["Gross number of contracts","Futures equivalent (delta-based) open interest","Total premium traded","Number of traders"],1,"The older gross OI measure was dropped."],[10,"Under the October 2025 rules, how is an option's contribution to futures equivalent OI found?",["Using its strike price only","Using its delta, from the 2 pm SPAN file during the ban","Using its premium","Counting each option as one future"],1,"A far OTM option with low delta adds far less than a deep ITM one."],[10,"During a ban, what must a trader's futures equivalent open interest in that stock not do?",["Stay the same","Decrease","Increase, or change sign from long to short or short to long","Be checked by the exchange"],2,"Reducing the position is allowed; adding or flipping is a violation."],[10,"The penalty for increasing a position in a banned stock under NSE Clearing's 2025 rules is:",["1% of the violation value, minimum ₹5,000 and maximum ₹1,00,000 per entity per stock per day","No penalty, only a warning","A flat ₹500","10% of capital"],0,"The penalty is charged for each day of violation."],[10,"A trader in a banned stock goes from −10 to −12 futures equivalent. The violation is:",["12","0","22","2"],3,"The short position grew by 2, which is not allowed during a ban."],[10,"A trader in a banned stock goes from −10 to +10 futures equivalent. The violation is:",["2","10","0","20"],1,"Flipping from short to long breaks the rule; the new long of 10 counts as the violation."],[10,"Why does the exchange put stocks in the F&O ban?",["To close the stock market","To punish the company","To stop open interest from growing too large relative to the stock's free float and trading","To stop delivery trading"],2,"Very high open interest can make a stock easier to manipulate and harder to settle."],[10,"Does an F&O ban stop trading in the stock's cash segment?",["No, cash market buying and selling continues","Only delivery buying is allowed","Only selling is allowed","Yes, all trading stops"],0,"The ban applies only to fresh derivative positions."],[10,"Free float in the MWPL formula means:",["All shares issued by the company","The number of F&O contracts","Shares held by promoters only","The shares available for trading, leaving out promoter and locked-in holdings"],3,"Stocks with small free float get smaller MWPLs."],[10,"ADDV in the MWPL formula stands for:",["Average daily delivery value","Average daily derivative volume","Average daily delta value","Annual dividend declared value"],0,"It is converted into quantity for the 65 × ADDV limb."],[10,"If a stock's open interest is at 92% of MWPL, which statement is right?",["It is already banned","It is not in the ban yet but is close to the 95% trigger","Its MWPL will double tomorrow","It can never enter the ban"],1,"Traders watch stocks near 95% because they could enter the ban next day."],[10,"Where can a trader check which stocks are in the F&O ban today?",["The RBI website","Only in the next month's newspaper","The company's annual report","The exchange's daily \"securities in ban period\" list"],3,"NSE publishes the list daily, and most broker apps show it too."],[10,"Gross open interest monitoring for the ban was:",["Introduced for the first time in 2025","Applied only to index options","Discontinued from October 2025, replaced by futures equivalent OI","Made stricter in 2025"],2,"The change came with the SEBI circular of 29 May 2025."],[10,"A stock in ban has OI at 85% of MWPL today. Can fresh positions be added tomorrow?",["Yes, anything below 95% ends the ban","No, it stays in ban until OI is at or below 80%","Only for options buyers","Yes, the ban ends after one day always"],1,"Exit from the ban needs the 80% level."],[10,"Under the 2025 rules, the MWPL for the next quarter is published:",["On the first day of the quarter after it starts","By the 20th of the last month of the reference quarter","Never, it is secret","Once a year in April"],1,"Traders can see the new limits before they apply."],[10,"Why can a short options seller in a banned stock get into trouble without placing a new trade?",["If the market moves, delta changes can increase their futures equivalent position","Brokers buy extra lots for them","It is not possible at all","Exchanges add positions on their own"],0,"Under delta-based OI, a position can grow in futures terms as delta changes, so watch it closely."],[10,"Which kind of stock is more likely to enter the F&O ban?",["A Nifty 50 index","One with heavy derivative open interest relative to its free float and delivery volume","A government bond","One with no derivatives"],1,"Crowded positions in smaller F&O stocks hit the limit more often."],[11,"In exchange-traded derivatives, novation means:",["The clearing corporation becomes the buyer to every seller and the seller to every buyer","Two traders sign a private contract","The broker becomes the owner of your shares","The exchange sets your profit"],0,"This removes the risk of the other trader not paying."],[11,"Counterparty risk in exchange-traded F&O is low because:",["Traders know each other personally","The clearing corporation guarantees settlement, backed by margins and a settlement guarantee fund","Brokers never default","SEBI pays all losses"],1,"Margins and default funds protect the system if a member fails."],[11,"NSE Clearing Limited's main job is to:",["Set interest rates","List new companies","Give investment advice","Clear and settle trades done on NSE and manage risk through margins"],3,"It is the clearing corporation for NSE."],[11,"A trading member is:",["A broker registered with the exchange who places trades for clients","A company listed on NSE","A retail investor","A SEBI official"],0,"Clearing members then settle those trades with the clearing corporation."],[11,"Before you can trade F&O, your broker must:",["Ask you for nothing","Buy a lot for you first","Get approval from RBI","Complete KYC and activate the derivatives segment after checking your financial details"],3,"Derivative activation needs income or net worth proof."],[11,"A UCC is:",["A type of option strategy","The unique client code your broker uses to identify you on the exchange","A margin formula","A stock ban list"],1,"Every client order carries a UCC."],[11,"Where can an investor file a complaint against a SEBI-registered broker if the broker does not resolve it?",["The company's HR department","The local police only","The RBI ombudsman for banks","SEBI SCORES"],3,"SCORES is SEBI's complaint portal; complain to the broker first."],[11,"Someone on Telegram offers \"sure-shot option tips\" for a fee. Before paying, check whether they are:",["Registered with SEBI as a research analyst or investment adviser","Popular on social media","Charging a low fee","Showing screenshots of profit"],0,"Unregistered tip sellers are a common source of losses and scams."],[11,"Profit screenshots shared by tipsters should be treated as:",["Unverified claims that prove nothing about future results","SEBI approved","A guarantee of returns","Proof of skill"],0,"Screenshots can be selective or fake."],[11,"Why should you never share your trading login or OTP with an \"account handler\"?",["They can trade your money away and you will have little recourse","It speeds up trading","Brokers recommend it","SEBI requires it"],0,"Account handling by strangers is a well-known way people lose savings."],[11,"Funds you keep with your broker for trading are:",["Subject to rules on client funds and periodic settlement back to your bank","Not tracked by anyone","Locked for five years","The broker's own money"],0,"Brokers must keep client money separate and settle running accounts periodically."],[11,"Exchange-traded options differ from OTC options mainly because exchange options:",["Are not regulated","Can have any custom terms","Have standard terms and a central clearing guarantee","Never expire"],2,"OTC deals are private and carry counterparty risk."],[11,"An algorithm that places orders automatically for retail clients through a broker must:",["Trade only after market hours","Follow no rules","Follow the broker's and exchange's approved algo framework set by SEBI","Be approved by RBI"],2,"SEBI has a framework for retail algo trading through registered brokers."],[11,"If a clearing member defaults, the first line of protection is:",["The government budget","Nothing, trades are cancelled","The investors of other brokers","The defaulter's own margins and collateral"],3,"After that come the default fund and the clearing corporation's own resources."],[11,"A contract note from your broker shows:",["Only the profit for the year","The stock's MWPL","Your credit score","The details of each trade, including price, quantity, charges and taxes"],3,"Check it each day you trade."],[11,"Which document tells you the risks of derivatives before you start?",["A newspaper ad","The company prospectus","The bank passbook","The risk disclosure document you accept when activating F&O"],3,"Read it rather than clicking through."],[11,"An exchange may stop an order that is far from the current price because of:",["Price bands and order checks meant to stop errors","Random selection","Brokerage limits","The trader's age"],0,"These checks prevent fat-finger trades."],[11,"Client-level position limits exist to:",["Stop a single trader from holding an oversized share of the market's open interest","Help traders make more profit","Reduce the lot size","Raise STT collection"],0,"Limits apply per client, per member and market-wide."],[11,"If your broker squares off your position because margin fell short, this is called:",["Novation","Rollover","Risk management square off (RMS square off)","Assignment"],2,"Keep enough margin so your position is not closed at a bad price."],[11,"Peak margin rules mean that:",["Margins are optional","Intraday trades need no margin","Brokers must collect the required margin upfront, including for intraday trades","Margin is collected only at expiry"],2,"Shortfalls can lead to penalties passed on to clients."],[12,"The first goal of risk management in F&O is to:",["Make a profit on every trade","Never use stop losses","Trade as many lots as margin allows","Make sure no single loss can wipe out your account"],3,"Survival comes before returns."],[12,"A common rule of thumb is to risk on any single trade no more than:",["A small fixed share of capital, such as 1% to 2%","Whatever feels right that day","Half of capital","All of capital"],0,"Small risk per trade lets you survive a run of losses."],[12,"Position sizing means:",["Trading one lot always","Choosing how many lots to trade based on how much you can afford to lose if the stop is hit","Copying someone else's size","Using the maximum lots margin allows"],1,"Size is decided by risk, not by available margin."],[12,"A stop loss is:",["A guarantee of profit","A type of option","A broker fee","A pre-decided exit level that limits the loss on a trade"],3,"In fast markets the exit price can be worse than the stop."],[12,"Why is selling naked options with all your margin dangerous?",["Sellers always lose","Margins are never refunded","One sharp move can cause losses far larger than the premium collected","It is illegal"],2,"Premium is capped; risk is not."],[12,"Averaging down a losing option buy means:",["Hedging with futures","A guaranteed way to recover","Buying more of a losing position to lower the average cost, which can increase losses","Selling half the position"],2,"Time decay keeps working against the averaged position."],[12,"A trading journal helps a trader by:",["Recording entries, exits and reasons so mistakes can be found and fixed","Predicting the market","Lowering STT","Increasing margin"],0,"Patterns in your own errors show up only when written down."],[12,"Revenge trading means:",["Hedging a position","Taking bigger, rushed trades right after a loss to win it back","Trading with a plan","Closing all trades at the end of the day"],1,"Emotional trades after losses often deepen them."],[12,"Overtrading is risky mainly because:",["Exchanges ban it","It reduces margin needs","Costs add up and decision quality falls","It always increases profit"],2,"Each trade pays brokerage, STT and the bid-ask spread."],[12,"Why should a beginner start with defined-risk strategies?",["They always make money","They have no costs","The maximum loss is known before entering the trade","They need no margin"],2,"Knowing the worst case makes sizing simple."],[12,"Gap risk refers to:",["The difference between bid and ask","The market opening far from the previous close, jumping past your stop loss","The gap between strikes","The gap between two expiries"],1,"Overnight news can cause gaps that stops cannot protect against."],[12,"Before an event such as election results, a trader holding short options should:",["Ignore the event","Cut size or hedge, because a big gap can cause outsized losses","Add more short options","Remove all stop losses"],1,"Events produce the largest moves."],[12,"Liquidity risk in options means:",["The option will expire early","There is no risk","The exchange will refund you","You may not be able to exit at a fair price because there are few buyers or sellers"],3,"Far OTM strikes and illiquid stocks often have wide spreads."],[12,"Which is the healthiest reason to take an F&O trade?",["A tested plan with a defined exit and a size you can afford to lose","Wanting to win back yesterday's loss","A tip from a stranger","Fear of missing out"],0,"Process decides long-run results."],[12,"A max loss per day rule means:",["You double size after a loss","You must lose a set amount each day","You stop trading for the day once losses reach a set amount","Your broker pays losses above a level"],2,"It protects you from spiralling on bad days."],[12,"Leverage in futures means that:",["You can only lose the margin","A small margin controls a large contract value, so gains and losses are magnified","There is no risk","Profits are guaranteed"],1,"A 1% move in Nifty can be a large share of the margin you posted."],[12,"Backtesting a strategy on past data is useful, but its main limit is:",["It is illegal","It always overstates losses","Past results may not repeat and costs or slippage are often under-counted","It cannot use any data"],2,"Include all costs and test on data the strategy was not tuned on."],[12,"Overfitting a strategy means:",["Making it simpler","Using fewer rules","Tuning it so closely to past data that it fails on new data","Testing on more years"],2,"The more knobs you turn, the more likely you fit noise."],[12,"Hedging a portfolio with Nifty puts:",["Increases risk","Is not allowed in India","Costs premium but limits the damage from a broad market fall","Removes all risk for free"],2,"The hedge cost is like an insurance premium."],[12,"Paper trading or very small size is sensible for a new strategy because:",["It removes the need for a plan","It lets you learn how the strategy behaves before risking real capital","It is required by SEBI","It always makes money"],1,"Real money brings emotions, so scale up slowly."],[12,"Which habit is most likely to blow up a small options account?",["Trading small size","Keeping a journal","Buying one defined-risk spread","Selling naked options with high leverage and no stop"],3,"Unlimited risk plus leverage is the classic account killer."],[12,"A risk-reward ratio of 1:2 means:",["You risk 2 to make 1","You risk 1 to potentially make 2","You trade two lots for one","You win twice as often"],1,"It says nothing about how often the trade wins."],[12,"Why is win rate alone not enough to judge a strategy?",["A high win rate with rare huge losses can still lose money overall","Win rate decides profit by itself","Win rate is always 50%","Losses do not matter"],0,"Look at average win, average loss and win rate together."],[12,"Expectancy of a strategy is:",["Average profit per trade after taking wins, losses and their sizes into account","The margin needed","The number of trades per day","The highest single profit"],0,"Positive expectancy after costs is the goal."],[12,"Drawdown means:",["The daily MTM","The amount withdrawn to your bank","The STT paid","The fall in account value from a peak to a later low"],3,"Big drawdowns need much bigger gains to recover: a 50% loss needs a 100% gain."],[12,"After a 50% loss, how much gain is needed to get back to the starting capital?",["50%","25%","75%","100%"],3,"Half the money has to double to return to where you began."],[12,"When a short option position goes against you, a sound first step is to:",["Follow your planned exit or adjustment instead of hoping","Stop looking at the screen","Remove the stop loss","Add more of the same short option"],0,"Decide the exit plan before you enter."],[12,"Which statement about \"safe\" option selling is right?",["Sellers have limited risk by default","Selling far OTM options is always safe","No option selling is risk free; it earns small amounts often and can lose large amounts rarely","Option selling never loses"],2,"Respect tail risk and size for it."],[12,"Keeping some capital unused as a buffer helps because:",["It increases lot size","It earns STT","Brokers require exactly 50% cash","Margins can rise suddenly and you avoid forced square off"],3,"Exchanges raise margins in volatile markets."],[12,"Before trading F&O with real money, the most useful thing a beginner can do is:",["Trade every expiry with full margin","Borrow money to trade bigger","Copy a Telegram group","Learn how premiums, Greeks and margins work and test ideas on small size"],3,"Understanding comes before risking capital."],[4,"A call option gives its buyer:",["The right to sell at the strike","The right, but not the obligation, to buy at the strike","The obligation to buy at the strike","The obligation to sell at the strike"],1,"A call is a right to buy. The seller of the call carries the obligation."],[4,"Nifty is at 23,000. Which put is in the money?",["22,000 PE","23,000 PE","22,700 PE","23,300 PE"],3,"A put is in the money when its strike is above the spot price, so only the 23,300 put has intrinsic value."],[4,"The 22,700 call (30 days) trades at 597.9 with Nifty at 23,000. What is its time value?",["597.9","897.9","300.0","297.9"],3,"Intrinsic value = 23,000 − 22,700 = 300. Time value = 597.9 − 300 = 297.9."],[4,"The 23,000 call costs 419.2 points. What do you pay for one lot of 65?",["₹10,480","₹27,247","₹31,439","₹20,960"],1,"Premium in rupees = points × lot size = 419.2 × 65 = ₹27,247."],[4,"With the same strike and expiry, the 23,000 call is 419.2 and the put is 319.3. The 99.9-point gap mainly reflects:",["Put-call parity: the forward trades above spot because of interest minus dividends","A pricing error to arbitrage","Higher demand for calls","Calls always cost more than puts"],0,"Call − put = present value of (forward − strike). With interest above the dividend yield, the forward is above 23,000, so the ATM call is dearer even at the same IV."],[4,"Which input to the option price is not visible on the screen and is backed out from the market price?",["Time to expiry","Spot price","Implied volatility","Strike price"],2,"Every other input is known. Implied volatility is the number that makes the model price match the market price."],[4,"Nifty index options are:",["American style and physically settled","European style and physically settled","European style and cash settled","American style and cash settled"],2,"They can be exercised only at expiry, and settlement is in cash. Stock options in India are physically settled."],[4,"Long call + short put at the same strike and expiry behaves like:",["A covered call","A long straddle","A short futures position","A long futures position"],3,"This is a synthetic long. Its payoff is a straight line, exactly like long futures."],[4,"At 6.5% interest and a 1.2% dividend yield, the fair 30-day Nifty future with spot at 23,000 is about:",["23,000","23,123","22,977","23,100"],3,"Fair future ≈ spot × e^((r − q) × t) = 23,000 × e^(0.053 × 30/365) ≈ 23,100."],[4,"If implied volatility rises and nothing else changes, what happens to call and put prices?",["Calls fall, puts rise","Both fall","Calls rise, puts fall","Both rise"],3,"Higher volatility raises the chance of a big move either way, so both calls and puts gain value."],[4,"The ATM call is 419.2 with 30 days left. Roughly what is it worth with 7 days left, all else equal?",["59.9","377.3","97.8","189.7"],3,"Time value decays roughly with the square root of time, not in a straight line: √(7/30) ≈ 0.48, so about 189.7, much more than the straight-line guess of 97.8."],[4,"A box spread (bull call spread + bear put spread, same strikes) is used mainly to:",["Hedge delta","Bet on a big move","Bet on falling volatility","Lock a fixed payoff, effectively lending or borrowing at an implied rate"],3,"A 22,800/23,200 box always pays 400 points at expiry. Its price today reflects interest, so it works as a financing trade."],[7,"Bull call spread: buy 23,000 CE, sell 23,400 CE, net debit 179.0. What is the breakeven?",["22,821","23,179","23,579","23,221"],1,"Breakeven = lower strike + net debit = 23,000 + 179.0 = 23,179."],[7,"For the same bull call spread (debit 179.0), what is the maximum profit per lot?",["₹11,634","Unlimited","₹14,366","₹26,000"],2,"Max profit = strike gap − debit = (400 − 179.0) × 65 = ₹14,366, reached above 23,400."],[7,"What is the maximum loss on a bull call spread?",["The strike gap minus the debit","Unlimited","The net debit paid","The strike gap"],2,"If Nifty ends below the lower strike, both calls expire worthless and you lose only what you paid."],[7,"A bear put spread is best suited to which view?",["A moderate fall to a target level","Nifty staying exactly at the current level","A slow rise","A big move either way"],0,"Buy a higher put and sell a lower put: you profit from a fall, with both cost and gain capped at the sold strike."],[7,"Iron condor: sell 22,500 PE and 23,500 CE, buy 22,300 PE and 23,700 CE, credit 103.1. What is the maximum loss per lot?",["₹6,297","₹6,703","Unlimited","₹13,000"],0,"Max loss = wing width − credit = (200 − 103.1) × 65 = ₹6,297."],[7,"For that iron condor (credit 103.1), what are the breakevens?",["22,603 and 23,397","22,403 and 23,597","22,397 and 23,603","22,500 and 23,500"],2,"Sold put − credit and sold call + credit: 22,500 − 103.1 and 23,500 + 103.1."],[7,"Long straddle at 23,000 costs 738.5 points. Where are the breakevens at expiry?",["22,581 and 23,319","22,500 and 23,500","22,631 and 23,369","22,261 and 23,739"],3,"Strike ± total premium: 23,000 ± 738.5."],[7,"Compared with a long straddle, a long strangle:",["Profits when Nifty stays still","Costs more and needs a smaller move","Costs less but needs a bigger move to profit","Has unlimited loss"],2,"OTM options are cheaper, so the strangle costs less, but its breakevens are further away."],[7,"Which position has unlimited loss on a rally?",["Bull call spread","Short strangle","Long butterfly","Iron condor"],1,"The short call in a strangle has nothing above it to cap the loss. The iron condor has a bought call wing."],[7,"A covered call on Nifty is built as:",["Long Nifty futures (or ETF) + short OTM call","Long call + long put","Short futures + long call","Short call + short put"],0,"The long underlying covers the short call. Upside is capped at the call strike; downside risk of the long position stays."],[7,"The main risk of a naked short put is:",["Unlimited loss on a rally","Losing only the premium","Time decay","A large loss if Nifty falls sharply below the strike"],3,"Below the breakeven the loss grows point for point. In a crash it can be many times the premium received."],[7,"A protective put is:",["Short underlying + short put","Long underlying + long put","Short call + long put","Long call + short put"],1,"The put acts as insurance on a long position: below the put strike, the put offsets further losses."],[7,"A collar combines a long position with:",["Two bought calls","A sold straddle","A bought OTM put and a sold OTM call","A sold put and a bought call"],2,"The call premium pays for the put. Loss is limited below the put strike and gain is capped at the call strike."],[7,"An iron butterfly differs from an iron condor because:",["It uses only calls","It has no wings","It is a debit trade","Its sold call and put share one middle strike"],3,"An iron butterfly sells the ATM straddle and buys wings, so it collects more credit but has a narrower profit zone."],[7,"Where does a long call butterfly (22,700 / 23,000 ×2 / 23,300) make its maximum profit?",["Nifty below 22,700","Anywhere between 22,700 and 23,300 equally","Nifty above 23,300","Nifty exactly at 23,000 at expiry"],3,"At 23,000 the 22,700 call is worth 300 and the others are worthless. Profit falls away on either side."],[7,"A call ratio spread (buy 1 ATM call, sell 2 OTM calls) has which main risk?",["Unlimited loss on a fall","Unlimited loss on a strong rally","Loss limited to the debit","No risk"],1,"One sold call is uncovered, so above the upper breakeven every point up is a loss."],[7,"A calendar spread (sell near-month ATM call, buy far-month ATM call) profits most when:",["Nifty stays near the strike and implied volatility holds or rises","Interest rates rise","Implied volatility collapses","Nifty moves far away quickly"],0,"The near option decays faster. A big move or a fall in far-month IV hurts the trade."],[7,"A jade lizard (short OTM put + short OTM call spread) has no upside risk when:",["The total credit is larger than the call-spread width","It uses weekly options","IV is low","The put is in the money"],0,"Above the call spread the worst case is (width − credit). If the credit is bigger than the width, a rally still leaves a profit."],[7,"Which strategy fits a view of \"Nifty stays in a range\" with high IV and defined risk?",["Iron condor","Long straddle","Long call","Call ratio backspread"],0,"An iron condor collects rich premium and caps the loss on both sides with bought wings."],[7,"Which strategy fits \"a big move is coming but I do not know the direction\", with IV still low?",["Long straddle or strangle","Covered call","Iron condor","Short straddle"],0,"Long volatility trades gain from a large move either way and are cheaper to buy when IV is low."],[7,"A risk reversal (sell OTM put, buy OTM call) is economically closest to:",["A box spread","A long straddle","A short strangle","A long position with a dead zone between the strikes"],3,"Below the put strike it loses like a long future and above the call strike it gains like one; between the strikes little changes."],[7,"Why do professional premium sellers often close credit trades at 50 to 60% of max profit?",["The rest of the profit takes the longest to earn and carries the most gamma risk","Brokers require it","It avoids STT","Options cannot be held to expiry"],0,"Most of the decay is captured early. Holding for the last part leaves the position exposed to sharp moves near expiry."],[5,"The 30-day ATM call has delta 0.55. If Nifty rises 100 points, roughly how much does one lot gain?",["₹55","₹6,500","₹3,579","₹36"],2,"Gain ≈ delta × move × lot = 0.55 × 100 × 65 ≈ ₹3,579."],[5,"The delta of a deep in-the-money put is close to:",["+1","−1","−0.5","0"],1,"Deep ITM puts move almost point for point opposite to the underlying."],[5,"Gamma is highest for which option?",["Deep out of the money, far from expiry","Deep in the money, far from expiry","At the money, close to expiry","Any option with high IV"],2,"ATM options near expiry have delta that can swing from 0 to 1 on a small move, which is high gamma."],[5,"A short straddle is:",["Short gamma and long theta","Long gamma and long theta","Short vega and short theta","Long gamma and short theta"],0,"You collect time decay (positive theta) but lose when Nifty moves a lot (negative gamma)."],[5,"The 30-day ATM call loses about 7.8 points a day. What is that per lot?",["₹8","₹510","₹785","₹15,299"],1,"Theta × lot = 7.8 × 65 ≈ ₹510 per day."],[5,"The 30-day ATM call has vega 26.1. If IV rises from 14% to 17%, roughly how many points does it gain?",["78","1","443","26"],0,"Vega is per 1 IV point: 26.1 × 3 ≈ 78 points."],[5,"Vega is largest for:",["Deep ITM options on expiry day","Short-dated far OTM options","Long-dated at-the-money options","Futures"],2,"More time and being near the money both increase the effect of a change in volatility."],[5,"How many Nifty futures lots hedge the delta of 10 lots of a long 0.40-delta call?",["4 lots short","25 lots short","4 lots long","10 lots short"],0,"Position delta = 10 × 0.40 = 4 lots long, so sell 4 futures lots to be delta neutral."],[5,"Gamma scalping a long straddle works only if:",["Realized volatility ends up higher than the IV you paid","Nifty stays still","IV falls after you buy","You never re-hedge"],0,"Re-hedging delta locks small gains from each move. Those gains beat theta only when actual movement exceeds the implied movement."],[5,"As expiry approaches, the delta of an out-of-the-money option tends to:",["Stay unchanged","Move toward one","Become negative for calls","Move toward zero"],3,"With less time, an OTM option has less chance of finishing ITM. This drift of delta with time is called charm."],[5,"Vanna measures how:",["Delta changes when implied volatility changes","Gamma changes with time","Theta changes with rates","Vega changes with vega"],0,"Vanna matters on Nifty because IV usually rises when the market falls, which shifts deltas."],[5,"Rho matters most for:",["Deep OTM weekly puts","Weekly ATM options","Long-dated options and box spreads","Futures"],2,"Interest-rate sensitivity grows with time to expiry; for weekly options it is tiny."],[5,"A delta-neutral iron condor becomes short delta after a rally because:",["The wings expire","Theta turns negative","Vega flips sign","The short call gains delta faster than the long call (negative gamma)"],3,"Short gamma means delta moves against you: as Nifty rises, the position gets shorter."],[5,"Why is the gamma of a short ATM weekly option dangerous on expiry day?",["A small move can swing the option from worthless to deep ITM within hours","Theta is zero on expiry day","Delta is fixed at 0.5","Vega is highest on expiry day"],0,"Gamma explodes near expiry for ATM strikes, so P&L becomes very sensitive to every point."],[5,"Which Greek tells you the daily cost of holding a long options position if nothing moves?",["Delta","Gamma","Rho","Theta"],3,"Theta is the change in value per day with price and volatility unchanged."],[6,"Historical (realized) volatility is calculated from:",["The standard deviation of past daily returns, annualised","The futures premium","Open interest","Option prices"],0,"Take daily log returns, compute their standard deviation and multiply by √252."],[6,"If the daily standard deviation of Nifty returns is 0.8%, the annualised volatility is about:",["12.7%","0.8%","20.2%","8.0%"],0,"0.8% × √252 ≈ 12.7%."],[6,"At 14% IV, the 30-day one-standard-deviation move for Nifty 23,000 is about:",["±3,220 points","±231 points","±13 points","±923 points"],3,"Spot × IV × √(days/365) = 23,000 × 0.14 × √(30/365) ≈ 923 points."],[6,"The \"rule of 16\" says the typical daily move implied by IV is about:",["IV ÷ 16","IV ÷ 252","IV × 16","IV ÷ 4"],0,"√256 = 16, close to √252 trading days. At 16% IV, the implied daily move is about 1%."],[6,"IV consistently above realized volatility over time is called:",["Volatility skew","Term structure","Mean reversion","The volatility risk premium"],3,"Option sellers are paid for carrying crash risk; this premium is what systematic selling tries to earn."],[6,"On Nifty, OTM puts usually trade at higher IV than equally OTM calls. This is the:",["Contango","Volatility crush","Volatility skew","Term structure"],2,"Demand for downside protection and the habit of markets falling faster than they rise create the skew."],[6,"A volatility surface shows implied volatility across:",["Only expiries","Strikes and expiries together","Different underlyings","Only strikes"],1,"Skew is the strike dimension, term structure is the expiry dimension; the surface combines them."],[6,"Before a major event, near-month IV jumps above far-month IV. The term structure is:",["Inverted","Flat","Normal (upward sloping)","Skewed"],0,"Normally near-term IV is lower. Event risk lifts the front month above the back months."],[6,"IV rank = (current IV − 1-year low) ÷ (1-year high − 1-year low). If IV is 14, the low 10 and the high 22, IV rank is:",["33%","45%","64%","14%"],0,"(14 − 10) ÷ (22 − 10) = 4 ÷ 12 ≈ 33%."],[6,"A trader buys the 23,000 straddle at 18% IV with 7 days left for 457 points. The next day Nifty moves 150 points and IV drops to 12%. The straddle is worth about 315. What hurt the trade?",["Interest rates","Positive theta","IV crush after the event","Too much gamma"],2,"The move came, but the fall in IV took away more value than the move added. Being right on direction is not enough when you overpay for volatility."],[6,"When IV is low relative to its own history and an event is ahead, the usual choice is to:",["Sell naked strangles","Sell covered calls only","Buy premium (long straddle, strangle or calendar)","Avoid options completely"],2,"Cheap volatility favours buyers; selling thin premium into an event carries poor reward for the risk."],[6,"A trade that buys a cheap part of the surface and sells a rich part is called:",["A carry trade","A delta hedge","A directional trade","A relative value volatility trade"],3,"Examples: selling rich front-month IV against cheaper back-month IV, or trading a steep skew with a ratio spread."],[6,"Which strategy is long vega?",["Covered call","Long calendar spread","Short strangle","Iron condor"],1,"The far-month option bought in a calendar has more vega than the near-month option sold."],[8,"Nifty futures price rises and open interest rises. This usually signals:",["Long unwinding","Short covering","Long build-up","Short build-up"],2,"New positions are being opened while price rises, so fresh longs are entering."],[8,"Price falls while open interest falls. This usually signals:",["Long unwinding","Short build-up","Long build-up","Short covering"],0,"Existing longs are closing positions, pushing price down without new shorts."],[8,"Price rises while open interest falls. This usually signals:",["Long unwinding","Short covering","Short build-up","Long build-up"],1,"Shorts buying back to close drive price up as positions shrink."],[8,"Put-call ratio (PCR) by open interest is:",["Put premium ÷ call premium","Total put OI ÷ total call OI","Put volume ÷ call volume only","Total call OI ÷ total put OI"],1,"PCR above 1 means more puts are open, often reflecting put writing."],[8,"The strike with the highest call open interest is often read as:",["Support","The ATM strike","Max pain","Resistance"],3,"Call writers defend that strike. It is a tendency, not a guarantee; walls break on news."],[8,"Max pain is the strike at which:",["The futures price settles","Option buyers in total would lose the most at expiry","Open interest is lowest","IV is highest"],1,"It is the expiry level that minimises payouts to option holders. Treat it as a weak tendency on expiry day."],[8,"Rising put OI at 23,000 together with a rising Nifty price usually suggests:",["A coming crash","Panic buying of puts","Short covering in calls","Put writers are building support at 23,000"],3,"Writers sell puts where they expect the market to hold, so fresh put OI under a rising market reads as support."],[8,"Nifty is above a rising 50-day moving average. For options strategy selection this mainly sets:",["The lot size","The IV level","The exact entry price","A bullish bias, favouring bullish spreads or put selling"],3,"Moving averages define trend bias, not precise entries."],[8,"If Nifty's ATR is 200 points, a short strangle with strikes 150 points away:",["Is safely far away","Has no gamma risk","Sits inside a normal day's range and is easily tested","Cannot lose money"],2,"ATR shows the typical daily range. Strikes inside it can be breached on an ordinary day."],[8,"NSE participant-wise OI data shows:",["IV by strike","How FIIs, DIIs, proprietary traders and clients are positioned","Live option prices","Broker margins"],1,"It is published daily and used to see which way large participants lean in index futures and options."],[12,"You have ₹5,00,000 and risk 1.5% per trade. An iron condor has a max loss of ₹6,300 per lot. How many lots can you trade?",["5","2","3","1"],3,"1.5% of 5,00,000 = ₹7,500. ₹7,500 ÷ ₹6,300 = 1.19, so 1 lot."],[12,"Position size should be based on:",["Margin required","The premium received","How confident you feel","Maximum loss (or stop-loss) in rupees"],3,"Margin is what the exchange blocks; the risk you take is the loss you can suffer."],[12,"A strategy wins 70% of trades with an average win of ₹1,000 and an average loss of ₹3,000. Its expectancy per trade is:",["+₹100","−₹900","−₹200","+₹700"],2,"0.7 × 1,000 − 0.3 × 3,000 = 700 − 900 = −₹200. A high win rate can still lose money."],[12,"Why does a hedged position (iron condor) need far less margin than a naked short strangle?",["It has no STT","Its worst-case loss is capped, and SPAN margin follows the worst case","Exchange rules ignore hedges","Brokers give a discount"],1,"Margin is based on scenario losses. Bought wings cap the loss, so the margin falls."],[12,"When legging into an iron condor, which legs should go first?",["The bought (protective) legs","The calls first, always","The sold legs","Order does not matter"],0,"Buying the wings first avoids being naked even briefly and lets the margin benefit apply."],[12,"Gap risk means:",["IV and HV differ","Nifty can open beyond your stop, so the stop fills far worse than planned","Your broker app is slow","The bid-ask gap is wide"],1,"Overnight news can move the open past your stop. Defined-risk structures limit this damage."],[12,"A common stop-loss rule for a short option is to exit when its price reaches:",["Zero","The strike price","Half the credit","About 2 times the credit received"],3,"A premium-based stop combined with a price-level stop keeps losses in proportion to the credit."],[12,"Five separate short Nifty strangles across expiries are best described as:",["Five diversified trades","One concentrated bet that Nifty stays in a range","A hedged book","A market-neutral arbitrage"],1,"They share the same underlying and the same risk; count exposure by direction and underlying."],[12,"Expected shortfall differs from VaR because it measures:",["The most likely daily loss","Only historical losses","The average loss on the days beyond the VaR level","The best-case gain"],2,"Short-option books have fat tails, so the average of the worst days is the more honest number."],[12,"Professional desks typically set limits on:",["Only the number of trades","Only the premium collected","Net delta, gamma, vega and maximum daily loss","Only brokerage"],2,"Greek limits and loss limits are checked before each trade and in the daily risk report."],[12,"Using the day's closing price to decide a 9:20 am entry in a backtest is an example of:",["Survivorship bias","Slippage","Walk-forward testing","Look-ahead bias"],3,"The rule uses information that was not available at the time of the trade."],[12,"The best check that a strategy is not overfitted is:",["Testing it unchanged on out-of-sample data","Adding more parameters","Ignoring costs","Testing only the best year"],0,"Rules built on one period must still work on data they were not tuned on, ideally in walk-forward windows."],[12,"A four-leg iron condor loses 1 point of slippage per leg on entry and exit. Per lot, that costs:",["₹520","₹1,040","₹260","₹65"],0,"4 legs × 2 sides × 1 point × 65 = ₹520 per lot, which can erase a thin edge."],[12,"Profit factor is:",["Average win ÷ average loss","Net profit ÷ capital","Gross profit ÷ gross loss","Win rate × average win"],2,"Above 1 the strategy made more than it lost; many options traders look for 1.5 or more."],[12,"Maximum drawdown measures:",["The worst single trade","Average daily loss","The largest peak-to-trough fall in equity","The total brokerage paid"],2,"It shows the pain you must sit through, which decides whether you can keep running the strategy."],[12,"Which field is essential in an options trade log?",["Only the date","Every leg with strike, expiry, quantity, price and the reason for the trade","Only the net P&L","The broker name only"],1,"Leg detail, IV at entry, reason, exits and costs let you find out why a strategy makes or loses money."],[12,"The most important safety feature in an automated options system is:",["More indicators","A kill switch with max-loss and max-order limits","Larger position size","A faster internet connection"],1,"Automation can repeat a mistake hundreds of times in seconds; hard limits stop it."],[12,"A Monte Carlo reshuffle of historical trades is used to:",["Remove costs","See the range of drawdowns the same trades could have produced in a different order","Predict tomorrow's price","Find the best parameter"],1,"The order of wins and losses changes the drawdown path; reshuffling shows how bad it could realistically get."],[9,"What is the Nifty lot size for contracts from January 2026?",["25","50","65","75"],2,"NSE revised it from 75 to 65 in its circular of 3 October 2025."],[9,"Nifty weekly options expire on:",["Thursday","Tuesday","Friday","Wednesday"],1,"NSE moved Nifty expiry from Thursday to Tuesday in September 2025; if Tuesday is a holiday, expiry moves to the previous trading day."],[9,"STT on selling an option (from 1 April 2026) is:",["0.1% of the premium","0.15% of the premium","0.05% of the contract value","0.0625% of the premium"],1,"Budget 2026-27 raised it from 0.1% to 0.15% of premium. Futures sales went from 0.02% to 0.05%."],[9,"Under SEBI's 2024 rules, each exchange may offer weekly options on:",["Any number of indices","No index","Two indices","One benchmark index"],3,"NSE kept Nifty 50 and BSE kept Sensex."],[9,"On expiry day, short index options attract:",["A flat ₹10,000 margin","Half margin","An additional 2% extreme loss margin","No margin"],2,"From SEBI's October 2024 circular; the calendar-spread margin benefit also does not apply on expiry day for positions expiring that day."],[9,"SEBI's study published in September 2024 found that individual F&O traders who lost money between FY22 and FY24 were about:",["50%","93%","25%","70%"],1,"Over 1 crore individual traders were studied; 93% made losses."],[9,"A US equity option contract usually covers:",["1,000 shares","10 shares","100 shares","65 shares"],2,"US options use a multiplier of 100; Nifty uses a lot of 65."],[9,"Which is true about SPX index options compared with SPY options?",["SPX is physically settled","SPX is European style and cash settled; SPY is American style","Both are American style","SPY options are cash settled"],1,"SPY options can be exercised early and settle in ETF shares; SPX options settle in cash at expiry only."],[3,"Nifty is at 23,450. What is the intrinsic value of the 23,050 call?",["0","400","−400","26,000"],1,"Call intrinsic value = spot − strike = 23,450 − 23,050 = 400 points. It is never below zero."],[3,"Nifty is at 23,950. What is the intrinsic value of the 24,450 put?",["−500","0","32,500","500"],3,"Put intrinsic value = strike − spot = 24,450 − 23,950 = 500 points."],[3,"Nifty is at 23,050. What is the intrinsic value of the 23,450 call?",["0","−400","400","200"],0,"The 23,450 call is out of the money: spot is below the strike. Intrinsic value cannot go below zero, so it is 0. All of its premium is time value."],[3,"Nifty is at 22,800 and the 22,500 call trades at 409. How much of the premium is time value?",["300","409","709","109"],3,"Intrinsic value = 22,800 − 22,500 = 300. Time value = premium − intrinsic = 409 − 300 = 109."],[3,"Nifty is at 23,900 and the 24,000 put trades at 257. How much of the premium is time value?",["157","357","100","257"],0,"Intrinsic value = 24,000 − 23,900 = 100. Time value = 257 − 100 = 157."],[3,"Nifty is at 24,750. The 24,250 put is:",["Already expired","In the money","Out of the money","At the money"],2,"A put is in the money when spot is below the strike. Here spot is above 24,250, so it is out of the money."],[4,"An option trades at 59 points. What does a buyer pay for 2 lots of Nifty (lot size 65)?",["₹7,670","₹118","₹8,850","₹2,950"],0,"Premium in rupees = points × lot size × lots = 59 × 65 × 2 = ₹7,670."],[4,"Ignoring interest and dividends, Nifty is at 22,600 and the 22,500 call trades at 204. By put-call parity, the 22,500 put should trade near:",["104","204","304","100"],0,"Without carry, call − put = spot − strike. So put = 204 − (22,600 − 22,500) = 104. In real markets interest makes the call a little dearer."],[4,"An option has intrinsic value 200 and time value 44. What is its premium?",["244","200","156","44"],0,"Premium = intrinsic value + time value = 200 + 44 = 244."],[4,"You buy 3 lots of a Nifty option at 229 and sell at 269. What is the gross P&L before costs?",["₹7,800","₹120","−₹7,800","₹9,000"],0,"P&L = (sell − buy) × 65 × lots = (269 − 229) × 65 × 3 = ₹7,800."],[2,"You buy 3 lots of Nifty futures at 22,150 and sell at 22,000. What is the gross P&L?",["−₹29,250","−₹450","−₹33,750","₹29,250"],0,"Long futures P&L = (sell − buy) × 65 × lots = −150 × 65 × 3 = −₹29,250."],[2,"You short 5 lots of Nifty futures at 23,350 and buy back at 23,430. What is the gross P&L?",["−₹26,000","₹26,000","−₹30,000","−₹400"],0,"Short futures gain when the price falls. P&L = (sell − buy) × 65 × lots = (23,350 − 23,430) × 65 × 5 = −₹26,000."],[2,"Nifty futures trade at 22,950. What is the contract value of 4 lots (lot size 65)?",["₹68,85,000","₹22,95,000","₹59,67,000","₹91,800"],2,"Contract value = price × lot size × lots = 22,950 × 65 × 4 = ₹59,67,000."],[2,"Nifty spot is 25,150 and the near-month future is 25,245. What is the basis (future − spot)?",["25,245","6,175","−95","95"],3,"Basis = 25,245 − 25,150 = 95 points. A future above spot is normal: it reflects the cost of carry."],[2,"You are long one lot of Nifty futures. Yesterday's settlement price was 23,800 and today's is 23,825. What is today's mark-to-market?",["−₹1,625","₹1,625","₹4,875","₹25"],1,"MTM settles the change from one day's settlement price to the next: (23,825 − 23,800) × 65 = ₹1,625."],[5,"A call has delta 0.5. If Nifty rises 100 points, roughly how much does the call gain?",["100","50","3,250","55"],1,"Change ≈ delta × move = 0.5 × 100 = 50 points, ignoring gamma and time."],[5,"A put has delta −0.3. If Nifty falls 120 points, roughly how much does the put gain?",["2,340","120","−36","36"],3,"Change ≈ delta × move = −0.3 × (−120) = +36 points. Puts gain when the market falls."],[5,"A long Nifty option has theta of −4 points a day. All else equal, about how much does one lot lose in 2 days?",["₹260","₹8","₹600","₹520"],3,"Loss ≈ theta × days × lot = 4 × 2 × 65 = ₹520. Theta grows near expiry, so this is only an estimate."],[5,"An option has vega 18. If implied volatility falls by 1.5 points, its price changes by about:",["−1.5","−27","18","27"],1,"Change ≈ vega × change in IV = 18 × −1.5 = −27 points."],[5,"You are long 4 lots of Nifty calls with delta 0.5. What is your position delta in Nifty units (lot 65)?",["260","130","2","32.5"],1,"Position delta = delta × lots × lot size = 0.5 × 4 × 65 = 130. The position moves like that many units of Nifty."],[5,"A call has delta 0.3 and gamma 0.001. After a 100-point rise in Nifty, its delta is about:",["0.30","0.40","0.20","0.10"],1,"New delta ≈ delta + gamma × move = 0.3 + 0.001 × 100 = 0.40."],[6,"Nifty is at 25,400 and implied volatility is 25%. Using spot × IV × √(days ÷ 365), what is the expected one standard deviation move over 14 days?",["About 1,244 points","About 244 points","About 2,487 points","About 6,350 points"],0,"25,400 × 25% × √(14 ÷ 365) ≈ 1,244 points. Roughly two times in three, Nifty should end within this range."],[6,"India VIX is 16. Using √365, roughly what daily move in Nifty does that imply?",["About 0.84%","About 4.38%","About 1.33%","About 16.00%"],0,"Daily move ≈ annual volatility ÷ √365 = 16 ÷ 19.1 ≈ 0.84%. Some traders use √252 trading days instead, which gives a slightly bigger number."],[6,"Implied volatility is 20% a year. About what percentage move is priced in for 91 days?",["About 20%","About 10.5%","About 10%","About 5%"],2,"Scale volatility by the square root of time: 20% × √(91 ÷ 365) ≈ 10%."],[7,"You buy the Nifty 24,300 call for 209. What is the breakeven at expiry?",["24,091","24,509","24,718","24,300"],1,"Long call breakeven = strike + premium = 24,300 + 209 = 24,509."],[7,"You buy the Nifty 22,050 put for 217. What is the breakeven at expiry?",["21,833","22,267","22,050","21,616"],0,"Long put breakeven = strike − premium = 22,050 − 217 = 21,833."],[7,"You sell the Nifty 25,250 put for 181. What is the breakeven at expiry?",["25,250","25,069","181","25,431"],1,"Short put breakeven = strike − premium received = 25,250 − 181 = 25,069. Below that the seller loses."],[7,"You buy 2 lots of the Nifty 22,100 call for 248. What is your maximum loss?",["₹28,73,000","₹496","₹37,200","₹32,240"],3,"A buyer can lose at most the premium: 248 × 65 × 2 = ₹32,240."],[7,"You bought one lot of the Nifty 23,150 call for 70. Nifty settles at 23,600 on expiry. What is your P&L?",["₹25,350","−₹24,700","₹29,250","₹24,700"],3,"Payoff = max(23,600 − 23,150, 0) − 70 = 380 points × 65 = ₹24,700."],[7,"You bought one lot of the Nifty 22,600 put for 75. Nifty settles at 22,150 on expiry. What is your P&L?",["₹29,250","₹24,375","₹25,025","−₹24,375"],1,"Payoff = max(22,600 − 22,150, 0) − 75 = 375 points × 65 = ₹24,375."],[7,"You sold one lot of the Nifty 25,050 put for 84. Nifty settles at 25,200 on expiry. What is your P&L?",["−₹9,750","₹5,460","−₹5,460","₹6,110"],1,"Short put P&L = premium − max(strike − settlement, 0) = 84 − 0 = 84 points × 65 = ₹5,460."],[7,"Bull call spread: buy the 25,500 call at 137 and sell the 25,700 call at 72. What is the maximum loss for one lot?",["₹4,225","₹8,905","₹8,775","₹13,000"],0,"Max loss = net debit × 65 = (137 − 72) × 65 = ₹4,225, if Nifty ends below 25,500."],[7,"Bear put spread: buy the 22,150 put at 204 and sell the 21,950 put at 124. What is the maximum profit for one lot?",["₹13,000","₹5,200","₹18,200","₹7,800"],3,"Max profit = (width − debit) × 65 = (200 − 80) × 65 = ₹7,800, reached below 21,950."],[7,"Bull put spread: sell the 22,650 put and buy the 22,450 put for a net credit of 62. What is the maximum loss for one lot?",["₹13,000","₹8,970","₹17,030","₹4,030"],1,"Max loss = (width − credit) × 65 = (200 − 62) × 65 = ₹8,970, if Nifty ends below 22,450."],[7,"Bear call spread: sell the 23,200 call and buy the 23,400 call for a net credit of 35. What is the maximum profit for one lot?",["₹10,725","₹2,275","₹13,000","₹4,550"],1,"Max profit = credit × 65 = 35 × 65 = ₹2,275, if Nifty stays below 23,200."],[7,"Short straddle at 23,650: the call is 208 and the put is 124. What are the breakevens at expiry?",["23,318 and 23,982","23,442 and 23,774","23,526 and 23,858","23,484 and 23,816"],0,"Total premium = 208 + 124 = 332. Breakevens = strike ± total premium = 23,318 and 23,982. The seller profits inside this range."],[7,"Long strangle: buy the 23,550 put at 52 and the 24,350 call at 56. What are the breakevens at expiry?",["23,442 and 24,458","23,550 and 24,350","23,658 and 24,242","23,498 and 24,406"],0,"Total premium = 108. Lower breakeven = put strike − total = 23,442. Upper = call strike + total = 24,458."],[7,"Iron condor: sell the 23,050 put and 24,050 call, buy the 22,950 put and 24,150 call, for a net credit of 57. What are the breakevens?",["23,107 and 23,993","22,950 and 24,150","23,050 and 24,050","22,993 and 24,107"],3,"Breakevens = short put − credit and short call + credit: 22,993 and 24,107."],[7,"Long call butterfly: buy the 22,350 call, sell two 22,450 calls, buy the 22,550 call, for a net debit of 32. What is the maximum profit per lot?",["₹4,420","₹10,920","₹6,500","₹2,080"],0,"At 22,450 on expiry the 22,350 call is worth 100 and the rest expire worthless. Max profit = (100 − 32) × 65 = ₹4,420."],[7,"You hold Nifty futures bought at 21,900 and sell the 22,200 call for 66 (a covered call). What is the most you can make per lot at expiry?",["₹23,790","₹19,500","₹15,210","₹4,290"],0,"Above the strike, gains stop: (strike − entry + premium) × 65 = (22,200 − 21,900 + 66) × 65 = ₹23,790."],[8,"Total put open interest is 55 lakh contracts and total call open interest is 70 lakh. What is the PCR (OI)?",["0.79","0.99","1.79","1.27"],0,"PCR = put OI ÷ call OI = 55 ÷ 70 = 0.79. More call OI than put OI."],[8,"A stock future moves from 960 to 945 and its open interest goes from 32 lakh to 35 lakh shares. This is:",["Short build-up","Long build-up","Long unwinding","Short covering"],0,"Price down with OI up = short build-up. Fresh shorts are entering."],[8,"Open interest at a strike was 108 lakh at the start of the day and the chain shows change in OI of −12 lakh. What is the OI now?",["108 lakh","96 lakh","−12 lakh","120 lakh"],1,"OI now = 108 − 12 = 96 lakh. Positions were closed."],[9,"You sell one lot of a Nifty option at 277. STT on option sales is 0.15% of the premium. How much STT is charged?",["₹9.00","₹28.01","₹270.08","₹27.01"],3,"STT = premium × lot × lots × 0.15% = 277 × 65 × 1 × 0.0015 = ₹27.01."],[9,"You sell 5 lots of Nifty futures at 24,800. STT on futures sales is 0.05%. How much STT is charged?",["₹10,075","₹1,612","₹12,090","₹4,030"],3,"STT = price × 65 × lots × 0.05% = 24,800 × 65 × 5 × 0.0005 = ₹4,030."],[9,"Your long Nifty call ends 200 points in the money and is exercised for 4 lots. STT on exercise is 0.15% of intrinsic value. How much STT?",["₹1.20","₹26.00","₹780.00","₹78.00"],3,"STT = intrinsic × 65 × lots × 0.15% = 200 × 65 × 4 × 0.0015 = ₹78.00."],[9,"You want to buy 4 lots of a Nifty option at 97 and sell another 4 lots naked. Which side needs SPAN plus exposure margin?",["Only the sold option","Neither side","Only the bought option","Both sides equally"],0,"The buyer pays only the premium (₹25,220 here). The seller has open-ended risk, so the clearing corporation blocks SPAN plus exposure margin. Check the exact amount in your broker's margin calculator."],[10,"A stock's MWPL is 825 lakh shares. At end of day its market-wide futures equivalent OI is 726 lakh. Does it enter the F&O ban?",["No, it stays out of the ban","Yes, it enters the ban from the next trading day","Only if the stock price falls","Yes, but only after 30 days"],0,"Utilisation = 726 ÷ 825 = 88%. The ban starts when OI is above 95% of MWPL at end of day."],[10,"A stock's MWPL is 250 lakh shares and its futures equivalent OI is 180 lakh. What is its MWPL utilisation?",["138.9%","36%","28%","72%"],3,"Utilisation = OI ÷ MWPL × 100 = 180 ÷ 250 × 100 = 72%. It is well below the 95% ban trigger."],[10,"A stock is in the F&O ban. Its combined futures equivalent OI across exchanges has fallen to 93% of MWPL. Can fresh positions be taken?",["No, it stays in the ban","Only option buyers can trade","Only after the next quarter","Yes, normal trading resumes"],0,"A stock leaves the ban only when combined OI is at or below 80% of MWPL. 93% is above that level."],[10,"A stock has a free float of 14,000 lakh shares and 65 × its average daily delivery value works out to 1,100 lakh shares. Under the October 2025 formula, what is its MWPL?",["2,100 lakh shares","2,800 lakh shares","1,100 lakh shares","1,400 lakh shares"],3,"MWPL = lower of 15% of free float (2,100) and 65 × ADDV (1,100), but not below 10% of free float (1,400). The lower figure is under the floor, so the floor applies: 1,400 lakh shares."],[10,"During a ban, a trader's futures equivalent position in the stock moves from −15 to 6. What is the violation under NSE Clearing's 2025 method?",["3","15","6","21"],2,"The sign changed, which is not allowed. The new long position of 6 is the violation."],[10,"The value of a trader's ban-period violation in a stock on one day is ₹1,50,000. Under NSE Clearing's 2025 rules (1%, minimum ₹5,000, maximum ₹1,00,000), what is the penalty?",["₹1,00,000","₹15,000","₹1,500","₹5,000"],3,"1% of ₹1,50,000 is ₹1,500. The penalty is capped between ₹5,000 and ₹1,00,000, so it is ₹5,000 for that day."],[12,"Your trading capital is ₹7,50,000 and you risk 2% per trade. How much can you lose on one trade?",["₹1,50,000","₹1,500","₹22,500","₹15,000"],3,"Risk per trade = ₹7,50,000 × 2% = ₹15,000."],[12,"Capital ₹5,00,000, risk 2% per trade, and your stop is 20 points away on a Nifty option (lot 65). How many lots can you trade at most?",["500 lots","14 lots","8 lots","7 lots"],3,"Risk per lot = 20 × 65 = ₹1,300. Allowed risk = ₹10,000. ₹10,000 ÷ ₹1,300 = 7.69, so 7 lots."],[12,"Your account falls 50%. What gain do you need to get back to where you started?",["50%","75%","25%","100%"],3,"Gain needed = loss ÷ (100 − loss) = 50 ÷ 50 = 100%. Losses hurt more than equal gains help."],[12,"You buy an option at 87 with a stop at 47 and a target at 127. What is the risk-reward ratio?",["1 : 2","1 : 0.5","1 : 1","1 : 1.5"],2,"Risk = 40 points, reward = 40 points. 40 ÷ 40 = 1, so 1 : 1."],[12,"A strategy wins 40% of trades with an average win of ₹4,000 and loses 60% with an average loss of ₹9,000. What is its expectancy per trade?",["₹1,600","−₹5,000","−₹3,800","₹3,800"],2,"Expectancy = 40% × ₹4,000 − 60% × ₹9,000 = −₹3,800. Negative: it loses money over many trades even with that win rate."],[12,"Your account peaked at ₹12,00,000 and later fell to ₹10,56,000. What is the drawdown?",["88%","24%","12%","1.2%"],2,"Drawdown = (peak − low) ÷ peak = ₹1,44,000 ÷ ₹12,00,000 = 12%."],[3,"Nifty is at 24,000. What is the intrinsic value of the 23,750 call?",["−250","16,250","0","250"],3,"Call intrinsic value = spot − strike = 24,000 − 23,750 = 250 points. It is never below zero."],[3,"Nifty is at 23,100. What is the intrinsic value of the 23,300 put?",["0","200","13,000","−200"],1,"Put intrinsic value = strike − spot = 23,300 − 23,100 = 200 points."],[3,"Nifty is at 25,200. What is the intrinsic value of the 25,300 call?",["−100","50","100","0"],3,"The 25,300 call is out of the money: spot is below the strike. Intrinsic value cannot go below zero, so it is 0. All of its premium is time value."],[3,"Nifty is at 24,300 and the 24,000 call trades at 389. How much of the premium is time value?",["89","389","689","300"],0,"Intrinsic value = 24,300 − 24,000 = 300. Time value = premium − intrinsic = 389 − 300 = 89."],[3,"Nifty is at 24,200 and the 24,500 put trades at 416. How much of the premium is time value?",["116","416","716","300"],0,"Intrinsic value = 24,500 − 24,200 = 300. Time value = 416 − 300 = 116."],[3,"Nifty is at 24,700. The 25,200 call is:",["Already expired","Out of the money","In the money","At the money"],1,"A call is in the money when spot is above the strike. Here spot is below 25,200, so it is out of the money."],[4,"An option trades at 327 points. What does a buyer pay for 5 lots of Nifty (lot size 65)?",["₹1,22,625","₹1,06,275","₹40,875","₹1,635"],1,"Premium in rupees = points × lot size × lots = 327 × 65 × 5 = ₹1,06,275."],[4,"Ignoring interest and dividends, Nifty is at 23,350 and the 23,150 call trades at 277. By put-call parity, the 23,150 put should trade near:",["277","77","477","200"],1,"Without carry, call − put = spot − strike. So put = 277 − (23,350 − 23,150) = 77. In real markets interest makes the call a little dearer."],[4,"An option has intrinsic value 300 and time value 126. What is its premium?",["300","426","174","126"],1,"Premium = intrinsic value + time value = 300 + 126 = 426."],[4,"You buy 3 lots of a Nifty option at 66 and sell at 86. What is the gross P&L before costs?",["₹4,500","₹60","₹3,900","−₹3,900"],2,"P&L = (sell − buy) × 65 × lots = (86 − 66) × 65 × 3 = ₹3,900."],[2,"You buy 5 lots of Nifty futures at 25,000 and sell at 24,900. What is the gross P&L?",["−₹37,500","−₹32,500","₹32,500","−₹500"],1,"Long futures P&L = (sell − buy) × 65 × lots = −100 × 65 × 5 = −₹32,500."],[2,"You short one lot of Nifty futures at 23,150 and buy back at 23,050. What is the gross P&L?",["₹100","−₹6,500","₹7,500","₹6,500"],3,"Short futures gain when the price falls. P&L = (sell − buy) × 65 × lots = (23,150 − 23,050) × 65 × 1 = ₹6,500."],[2,"Nifty futures trade at 24,550. What is the contract value of 4 lots (lot size 65)?",["₹98,200","₹63,83,000","₹73,65,000","₹24,55,000"],1,"Contract value = price × lot size × lots = 24,550 × 65 × 4 = ₹63,83,000."],[2,"Nifty spot is 24,750 and the near-month future is 24,845. What is the basis (future − spot)?",["−95","6,175","24,845","95"],3,"Basis = 24,845 − 24,750 = 95 points. A future above spot is normal: it reflects the cost of carry."],[2,"You are long one lot of Nifty futures. Yesterday's settlement price was 24,290 and today's is 24,220. What is today's mark-to-market?",["−₹8,450","−₹4,550","−₹70","₹4,550"],1,"MTM settles the change from one day's settlement price to the next: (24,220 − 24,290) × 65 = −₹4,550."],[5,"A call has delta 0.3. If Nifty rises 150 points, roughly how much does the call gain?",["45","150","105","2,925"],0,"Change ≈ delta × move = 0.3 × 150 = 45 points, ignoring gamma and time."],[5,"A put has delta −0.45. If Nifty falls 100 points, roughly how much does the put gain?",["100","45","2,925","−45"],1,"Change ≈ delta × move = −0.45 × (−100) = +45 points. Puts gain when the market falls."],[5,"A long Nifty option has theta of −12 points a day. All else equal, about how much does one lot lose in 3 days?",["₹780","₹2,340","₹2,700","₹36"],1,"Loss ≈ theta × days × lot = 12 × 3 × 65 = ₹2,340. Theta grows near expiry, so this is only an estimate."],[5,"An option has vega 15. If implied volatility rises by 2 points, its price changes by about:",["−30","2","15","30"],3,"Change ≈ vega × change in IV = 15 × 2 = 30 points."],[5,"You are long one lot of Nifty calls with delta 0.6. What is your position delta in Nifty units (lot 65)?",["39","0.6","45.5","65"],0,"Position delta = delta × lots × lot size = 0.6 × 1 × 65 = 39. The position moves like that many units of Nifty."],[5,"A call has delta 0.55 and gamma 0.001. After a 50-point rise in Nifty, its delta is about:",["0.60","0.50","0.05","0.55"],0,"New delta ≈ delta + gamma × move = 0.55 + 0.001 × 50 = 0.60."],[6,"Nifty is at 25,300 and implied volatility is 15%. Using spot × IV × √(days ÷ 365), what is the expected one standard deviation move over 30 days?",["About 312 points","About 1,088 points","About 2,176 points","About 3,795 points"],1,"25,300 × 15% × √(30 ÷ 365) ≈ 1,088 points. Roughly two times in three, Nifty should end within this range."],[6,"India VIX is 14. Using √365, roughly what daily move in Nifty does that imply?",["About 14.00%","About 0.73%","About 3.84%","About 1.17%"],1,"Daily move ≈ annual volatility ÷ √365 = 14 ÷ 19.1 ≈ 0.73%. Some traders use √252 trading days instead, which gives a slightly bigger number."],[6,"Implied volatility is 20% a year. About what percentage move is priced in for 182 days?",["About 14.6%","About 14.1%","About 10%","About 20%"],1,"Scale volatility by the square root of time: 20% × √(182 ÷ 365) ≈ 14.1%."],[7,"You buy the Nifty 23,750 call for 123. What is the breakeven at expiry?",["23,873","23,627","23,996","23,750"],0,"Long call breakeven = strike + premium = 23,750 + 123 = 23,873."],[7,"You buy the Nifty 23,800 put for 119. What is the breakeven at expiry?",["23,562","23,919","23,681","23,800"],2,"Long put breakeven = strike − premium = 23,800 − 119 = 23,681."],[7,"You sell the Nifty 23,850 put for 237. What is the breakeven at expiry?",["23,613","23,850","24,087","237"],0,"Short put breakeven = strike − premium received = 23,850 − 237 = 23,613. Below that the seller loses."],[7,"You buy 3 lots of the Nifty 25,100 call for 146. What is your maximum loss?",["₹28,470","₹48,94,500","₹438","₹32,850"],0,"A buyer can lose at most the premium: 146 × 65 × 3 = ₹28,470."],[7,"You bought one lot of the Nifty 23,650 call for 242. Nifty settles at 23,750 on expiry. What is your P&L?",["₹9,230","₹6,500","−₹8,580","−₹9,230"],3,"Payoff = max(23,750 − 23,650, 0) − 242 = −142 points × 65 = −₹9,230."],[7,"You bought one lot of the Nifty 22,500 put for 170. Nifty settles at 22,800 on expiry. What is your P&L?",["₹11,050","−₹19,500","₹0","−₹11,050"],3,"Payoff = max(22,500 − 22,800, 0) − 170 = −170 points × 65 = −₹11,050."],[7,"You sold one lot of the Nifty 23,900 put for 194. Nifty settles at 23,500 on expiry. What is your P&L?",["−₹13,390","₹13,390","₹26,000","₹12,610"],0,"Short put P&L = premium − max(strike − settlement, 0) = 194 − 400 = −206 points × 65 = −₹13,390."],[7,"Bull call spread: buy the 22,900 call at 148 and sell the 23,100 call at 105. What is the maximum loss for one lot?",["₹13,000","₹2,795","₹9,620","₹10,205"],1,"Max loss = net debit × 65 = (148 − 105) × 65 = ₹2,795, if Nifty ends below 22,900."],[7,"Bear put spread: buy the 25,350 put at 177 and sell the 25,250 put at 129. What is the maximum profit for one lot?",["₹3,380","₹3,120","₹6,500","₹9,620"],0,"Max profit = (width − debit) × 65 = (100 − 48) × 65 = ₹3,380, reached below 25,250."],[7,"Bull put spread: sell the 25,200 put and buy the 24,900 put for a net credit of 64. What is the maximum loss for one lot?",["₹4,160","₹15,340","₹19,500","₹23,660"],1,"Max loss = (width − credit) × 65 = (300 − 64) × 65 = ₹15,340, if Nifty ends below 24,900."],[7,"Bear call spread: sell the 22,150 call and buy the 22,450 call for a net credit of 105. What is the breakeven?",["22,045","22,555","22,255","22,345"],2,"Breakeven = short call strike + credit = 22,150 + 105 = 22,255."],[7,"Long straddle at 22,800: the call is 251 and the put is 171. What are the breakevens at expiry?",["22,378 and 23,222","22,629 and 23,051","22,589 and 23,011","22,549 and 22,971"],0,"Total premium = 251 + 171 = 422. Breakevens = strike ± total premium = 22,378 and 23,222. The buyer profits outside this range."],[7,"Long strangle: buy the 25,250 put at 100 and the 25,750 call at 46. What are the breakevens at expiry?",["25,150 and 25,796","25,396 and 25,604","25,104 and 25,896","25,250 and 25,750"],2,"Total premium = 146. Lower breakeven = put strike − total = 25,104. Upper = call strike + total = 25,896."],[7,"Iron condor: sell the 24,150 put and 24,950 call, buy the 24,050 put and 25,050 call, for a net credit of 68. What is the maximum loss for one lot?",["₹2,080","₹6,500","₹8,580","₹4,420"],0,"Max loss = (wing width − credit) × 65 = (100 − 68) × 65 = ₹2,080. Only one side can lose at expiry."],[7,"Long call butterfly: buy the 23,600 call, sell two 23,700 calls, buy the 23,800 call, for a net debit of 24. What is the maximum profit per lot?",["₹6,500","₹1,560","₹4,940","₹11,440"],2,"At 23,700 on expiry the 23,600 call is worth 100 and the rest expire worthless. Max profit = (100 − 24) × 65 = ₹4,940."],[7,"You hold Nifty futures bought at 22,700 and sell the 22,900 call for 54 (a covered call). What is the most you can make per lot at expiry?",["₹16,510","₹9,490","₹13,000","₹3,510"],0,"Above the strike, gains stop: (strike − entry + premium) × 65 = (22,900 − 22,700 + 54) × 65 = ₹16,510."],[8,"Total put open interest is 65 lakh contracts and total call open interest is 150 lakh. What is the PCR (OI)?",["2.31","0.43","0.63","1.43"],1,"PCR = put OI ÷ call OI = 65 ÷ 150 = 0.43. More call OI than put OI."],[8,"A stock future moves from 2,920 to 2,935 and its open interest goes from 78 lakh to 84 lakh shares. This is:",["Long unwinding","Short covering","Long build-up","Short build-up"],2,"Price up with OI up = long build-up. Fresh longs are entering."],[8,"Open interest at a strike was 84 lakh at the start of the day and the chain shows change in OI of −6 lakh. What is the OI now?",["90 lakh","−6 lakh","84 lakh","78 lakh"],3,"OI now = 84 − 6 = 78 lakh. Positions were closed."],[9,"You sell 4 lots of a Nifty option at 84. STT on option sales is 0.15% of the premium. How much STT is charged?",["₹10.92","₹32.76","₹327.60","₹33.76"],1,"STT = premium × lot × lots × 0.15% = 84 × 65 × 4 × 0.0015 = ₹32.76."],[9,"You sell one lot of Nifty futures at 23,200. STT on futures sales is 0.05%. How much STT is charged?",["₹302","₹754","₹1,885","₹2,262"],1,"STT = price × 65 × lots × 0.05% = 23,200 × 65 × 1 × 0.0005 = ₹754."],[9,"Your long Nifty call ends 100 points in the money and is exercised for 2 lots. STT on exercise is 0.15% of intrinsic value. How much STT?",["₹6.50","₹0.30","₹195.00","₹19.50"],3,"STT = intrinsic × 65 × lots × 0.15% = 100 × 65 × 2 × 0.0015 = ₹19.50."],[9,"You want to buy 5 lots of a Nifty option at 60 and sell another 5 lots naked. Which side needs SPAN plus exposure margin?",["Only the sold option","Neither side","Both sides equally","Only the bought option"],0,"The buyer pays only the premium (₹19,500 here). The seller has open-ended risk, so the clearing corporation blocks SPAN plus exposure margin. Check the exact amount in your broker's margin calculator."],[10,"A stock's MWPL is 400 lakh shares. At end of day its market-wide futures equivalent OI is 312 lakh. Does it enter the F&O ban?",["Yes, it enters the ban from the next trading day","No, it stays out of the ban","Only if the stock price falls","Yes, but only after 30 days"],1,"Utilisation = 312 ÷ 400 = 78%. The ban starts when OI is above 95% of MWPL at end of day."],[10,"A stock's MWPL is 400 lakh shares and its futures equivalent OI is 312 lakh. What is its MWPL utilisation?",["22%","128.2%","39%","78%"],3,"Utilisation = OI ÷ MWPL × 100 = 312 ÷ 400 × 100 = 78%. It is well below the 95% ban trigger."],[10,"A stock is in the F&O ban. Its combined futures equivalent OI across exchanges has fallen to 81% of MWPL. Can fresh positions be taken?",["No, it stays in the ban","Yes, normal trading resumes","Only option buyers can trade","Only after the next quarter"],0,"A stock leaves the ban only when combined OI is at or below 80% of MWPL. 81% is above that level."],[10,"A stock has a free float of 15,000 lakh shares and 65 × its average daily delivery value works out to 1,400 lakh shares. Under the October 2025 formula, what is its MWPL?",["3,000 lakh shares","1,500 lakh shares","2,250 lakh shares","1,400 lakh shares"],1,"MWPL = lower of 15% of free float (2,250) and 65 × ADDV (1,400), but not below 10% of free float (1,500). The lower figure is under the floor, so the floor applies: 1,500 lakh shares."],[10,"During a ban, a trader's futures equivalent position in the stock moves from 8 to 4. What is the violation under NSE Clearing's 2025 method?",["No violation","8","1","4"],0,"The position shrank in the same direction, which is allowed during a ban."],[12,"Your trading capital is ₹7,50,000 and you risk 1% per trade. How much can you lose on one trade?",["₹750","₹7,500","₹75,000","₹15,000"],1,"Risk per trade = ₹7,50,000 × 1% = ₹7,500."],[12,"Capital ₹20,00,000, risk 2% per trade, and your stop is 20 points away on a Nifty option (lot 65). How many lots can you trade at most?",["31 lots","30 lots","60 lots","2,000 lots"],1,"Risk per lot = 20 × 65 = ₹1,300. Allowed risk = ₹40,000. ₹40,000 ÷ ₹1,300 = 30.77, so 30 lots."],[12,"Your account falls 10%. What gain do you need to get back to where you started?",["5%","10%","11.1%","15%"],2,"Gain needed = loss ÷ (100 − loss) = 10 ÷ 90 = 11.1%. Losses hurt more than equal gains help."],[12,"You buy an option at 89 with a stop at 39 and a target at 214. What is the risk-reward ratio?",["1 : 2.5","1 : 3","1 : 0.4","1 : 3.5"],0,"Risk = 50 points, reward = 125 points. 125 ÷ 50 = 2.5, so 1 : 2.5."],[12,"A strategy wins 70% of trades with an average win of ₹3,000 and loses 30% with an average loss of ₹9,000. What is its expectancy per trade?",["₹2,100","−₹6,000","−₹600","₹600"],2,"Expectancy = 70% × ₹3,000 − 30% × ₹9,000 = −₹600. Negative: it loses money over many trades even with that win rate."],[12,"Your account peaked at ₹12,00,000 and later fell to ₹7,80,000. What is the drawdown?",["35%","70%","3.5%","65%"],0,"Drawdown = (peak − low) ÷ peak = ₹4,20,000 ÷ ₹12,00,000 = 35%."],[3,"Nifty is at 23,150. What is the intrinsic value of the 23,000 call?",["150","9,750","−150","0"],0,"Call intrinsic value = spot − strike = 23,150 − 23,000 = 150 points. It is never below zero."],[3,"Nifty is at 22,650. What is the intrinsic value of the 22,850 put?",["0","200","−200","13,000"],1,"Put intrinsic value = strike − spot = 22,850 − 22,650 = 200 points."],[3,"Nifty is at 23,500. What is the intrinsic value of the 23,600 call?",["50","−100","100","0"],3,"The 23,600 call is out of the money: spot is below the strike. Intrinsic value cannot go below zero, so it is 0. All of its premium is time value."],[3,"Nifty is at 23,450 and the 23,350 call trades at 162. How much of the premium is time value?",["162","100","62","262"],2,"Intrinsic value = 23,450 − 23,350 = 100. Time value = premium − intrinsic = 162 − 100 = 62."],[3,"Nifty is at 22,850 and the 23,150 put trades at 459. How much of the premium is time value?",["459","159","759","300"],1,"Intrinsic value = 23,150 − 22,850 = 300. Time value = 459 − 300 = 159."],[3,"Nifty is at 23,950. The 23,750 put is:",["Already expired","In the money","At the money","Out of the money"],3,"A put is in the money when spot is below the strike. Here spot is above 23,750, so it is out of the money."],[4,"An option trades at 321 points. What does a buyer pay for 2 lots of Nifty (lot size 65)?",["₹642","₹41,730","₹16,050","₹48,150"],1,"Premium in rupees = points × lot size × lots = 321 × 65 × 2 = ₹41,730."],[4,"Ignoring interest and dividends, Nifty is at 25,100 and the 24,900 call trades at 348. By put-call parity, the 24,900 put should trade near:",["548","200","348","148"],3,"Without carry, call − put = spot − strike. So put = 348 − (25,100 − 24,900) = 148. In real markets interest makes the call a little dearer."],[4,"An option has intrinsic value 100 and time value 187. What is its premium?",["187","100","287","87"],2,"Premium = intrinsic value + time value = 100 + 187 = 287."],[4,"You buy one lot of a Nifty option at 93 and sell at 73. What is the gross P&L before costs?",["−₹20","₹1,300","−₹1,300","−₹1,500"],2,"P&L = (sell − buy) × 65 × lots = (73 − 93) × 65 × 1 = −₹1,300."],[2,"You buy 3 lots of Nifty futures at 23,550 and sell at 23,470. What is the gross P&L?",["−₹18,000","₹15,600","−₹240","−₹15,600"],3,"Long futures P&L = (sell − buy) × 65 × lots = −80 × 65 × 3 = −₹15,600."],[2,"You short one lot of Nifty futures at 22,700 and buy back at 22,850. What is the gross P&L?",["−₹11,250","₹9,750","−₹9,750","−₹150"],2,"Short futures gain when the price falls. P&L = (sell − buy) × 65 × lots = (22,700 − 22,850) × 65 × 1 = −₹9,750."],[2,"Nifty futures trade at 23,550. What is the contract value of one lot (lot size 65)?",["₹17,66,250","₹23,550","₹5,88,750","₹15,30,750"],3,"Contract value = price × lot size × lots = 23,550 × 65 × 1 = ₹15,30,750."],[2,"Nifty spot is 22,800 and the near-month future is 22,785. What is the basis (future − spot)?",["−975","−15","15","22,785"],1,"Basis = 22,785 − 22,800 = −15 points. A future below spot can happen when dividends or selling pressure outweigh carry."],[2,"You are long one lot of Nifty futures. Yesterday's settlement price was 23,780 and today's is 23,735. What is today's mark-to-market?",["−₹45","−₹2,925","−₹975","₹2,925"],1,"MTM settles the change from one day's settlement price to the next: (23,735 − 23,780) × 65 = −₹2,925."],[5,"A call has delta 0.65. If Nifty rises 120 points, roughly how much does the call gain?",["5,070","78","42","120"],1,"Change ≈ delta × move = 0.65 × 120 = 78 points, ignoring gamma and time."],[5,"A put has delta −0.35. If Nifty falls 100 points, roughly how much does the put gain?",["2,275","35","−35","100"],1,"Change ≈ delta × move = −0.35 × (−100) = +35 points. Puts gain when the market falls."],[5,"A long Nifty option has theta of −10 points a day. All else equal, about how much does one lot lose in 3 days?",["₹650","₹30","₹2,250","₹1,950"],3,"Loss ≈ theta × days × lot = 10 × 3 × 65 = ₹1,950. Theta grows near expiry, so this is only an estimate."],[5,"An option has vega 20. If implied volatility rises by 2 points, its price changes by about:",["20","2","40","−40"],2,"Change ≈ vega × change in IV = 20 × 2 = 40 points."],[5,"You are long one lot of Nifty calls with delta 0.25. What is your position delta in Nifty units (lot 65)?",["65","0.3","22.8","16.3"],3,"Position delta = delta × lots × lot size = 0.25 × 1 × 65 = 16.3. The position moves like that many units of Nifty."],[5,"A call has delta 0.5 and gamma 0.002. After a 150-point rise in Nifty, its delta is about:",["0.20","0.50","0.30","0.80"],3,"New delta ≈ delta + gamma × move = 0.5 + 0.002 × 150 = 0.80."],[6,"Nifty is at 23,550 and implied volatility is 10%. Using spot × IV × √(days ÷ 365), what is the expected one standard deviation move over 14 days?",["About 922 points","About 461 points","About 2,355 points","About 90 points"],1,"23,550 × 10% × √(14 ÷ 365) ≈ 461 points. Roughly two times in three, Nifty should end within this range."],[6,"India VIX is 24. Using √365, roughly what daily move in Nifty does that imply?",["About 6.58%","About 24.00%","About 1.26%","About 2.00%"],2,"Daily move ≈ annual volatility ÷ √365 = 24 ÷ 19.1 ≈ 1.26%. Some traders use √252 trading days instead, which gives a slightly bigger number."],[6,"Implied volatility is 24% a year. About what percentage move is priced in for 91 days?",["About 6%","About 24%","About 12%","About 12.5%"],2,"Scale volatility by the square root of time: 24% × √(91 ÷ 365) ≈ 12%."],[7,"You buy the Nifty 22,300 call for 195. What is the breakeven at expiry?",["22,105","22,690","22,495","22,300"],2,"Long call breakeven = strike + premium = 22,300 + 195 = 22,495."],[7,"You buy the Nifty 24,500 put for 116. What is the breakeven at expiry?",["24,500","24,268","24,616","24,384"],3,"Long put breakeven = strike − premium = 24,500 − 116 = 24,384."],[7,"You sell the Nifty 24,650 put for 153. What is the breakeven at expiry?",["24,650","153","24,803","24,497"],3,"Short put breakeven = strike − premium received = 24,650 − 153 = 24,497. Below that the seller loses."],[7,"You buy one lot of the Nifty 24,450 call for 47. What is your maximum loss?",["₹47","₹3,525","₹15,89,250","₹3,055"],3,"A buyer can lose at most the premium: 47 × 65 × 1 = ₹3,055."],[7,"You bought one lot of the Nifty 22,800 call for 73. Nifty settles at 22,650 on expiry. What is your P&L?",["−₹9,750","−₹4,745","₹0","₹4,745"],1,"Payoff = max(22,650 − 22,800, 0) − 73 = −73 points × 65 = −₹4,745."],[7,"You bought one lot of the Nifty 23,550 put for 191. Nifty settles at 23,100 on expiry. What is your P&L?",["−₹16,835","₹16,835","₹17,485","₹29,250"],1,"Payoff = max(23,550 − 23,100, 0) − 191 = 259 points × 65 = ₹16,835."],[7,"You sold one lot of the Nifty 24,750 put for 215. Nifty settles at 24,650 on expiry. What is your P&L?",["₹13,975","−₹7,475","₹7,475","₹6,500"],2,"Short put P&L = premium − max(strike − settlement, 0) = 215 − 100 = 115 points × 65 = ₹7,475."],[7,"Bull call spread: buy the 22,850 call at 254 and sell the 23,150 call at 220. What is the maximum loss for one lot?",["₹2,210","₹16,510","₹17,290","₹19,500"],0,"Max loss = net debit × 65 = (254 − 220) × 65 = ₹2,210, if Nifty ends below 22,850."],[7,"Bear put spread: buy the 22,300 put at 140 and sell the 22,100 put at 91. What is the maximum profit for one lot?",["₹16,185","₹13,000","₹9,815","₹3,185"],2,"Max profit = (width − debit) × 65 = (200 − 49) × 65 = ₹9,815, reached below 22,100."],[7,"Bull put spread: sell the 25,050 put and buy the 24,850 put for a net credit of 83. What is the breakeven?",["24,767","24,967","25,133","24,933"],1,"Breakeven = short put strike − credit = 25,050 − 83 = 24,967."],[7,"Bear call spread: sell the 22,450 call and buy the 22,750 call for a net credit of 95. What is the maximum profit for one lot?",["₹13,325","₹19,500","₹12,350","₹6,175"],3,"Max profit = credit × 65 = 95 × 65 = ₹6,175, if Nifty stays below 22,450."],[7,"Long straddle at 25,150: the call is 225 and the put is 149. What are the breakevens at expiry?",["24,776 and 25,524","24,925 and 25,299","24,963 and 25,337","25,001 and 25,375"],0,"Total premium = 225 + 149 = 374. Breakevens = strike ± total premium = 24,776 and 25,524. The buyer profits outside this range."],[7,"Long strangle: buy the 24,250 put at 55 and the 24,850 call at 115. What are the breakevens at expiry?",["24,250 and 24,850","24,080 and 25,020","24,195 and 24,965","24,420 and 24,680"],1,"Total premium = 170. Lower breakeven = put strike − total = 24,080. Upper = call strike + total = 25,020."],[7,"Iron condor: sell the 23,600 put and 24,400 call, buy the 23,400 put and 24,600 call, for a net credit of 92. What is the maximum loss for one lot?",["₹13,000","₹5,980","₹20,020","₹7,020"],3,"Max loss = (wing width − credit) × 65 = (200 − 92) × 65 = ₹7,020. Only one side can lose at expiry."],[7,"Long call butterfly: buy the 24,300 call, sell two 24,600 calls, buy the 24,900 call, for a net debit of 19. What is the maximum profit per lot?",["₹1,235","₹37,765","₹19,500","₹18,265"],3,"At 24,600 on expiry the 24,300 call is worth 300 and the rest expire worthless. Max profit = (300 − 19) × 65 = ₹18,265."],[7,"You hold Nifty futures bought at 24,300 and sell the 24,600 call for 133 (a covered call). What is the most you can make per lot at expiry?",["₹28,145","₹8,645","₹10,855","₹19,500"],0,"Above the strike, gains stop: (strike − entry + premium) × 65 = (24,600 − 24,300 + 133) × 65 = ₹28,145."],[8,"Total put open interest is 75 lakh contracts and total call open interest is 60 lakh. What is the PCR (OI)?",["1.45","2.25","0.80","1.25"],3,"PCR = put OI ÷ call OI = 75 ÷ 60 = 1.25. More put OI than call OI."],[8,"A stock future moves from 2,320 to 2,328 and its open interest goes from 90 lakh to 95 lakh shares. This is:",["Long build-up","Short build-up","Short covering","Long unwinding"],0,"Price up with OI up = long build-up. Fresh longs are entering."],[8,"Open interest at a strike was 92 lakh at the start of the day and the chain shows change in OI of −12 lakh. What is the OI now?",["80 lakh","92 lakh","−12 lakh","104 lakh"],0,"OI now = 92 − 12 = 80 lakh. Positions were closed."],[9,"You sell 3 lots of a Nifty option at 210. STT on option sales is 0.15% of the premium. How much STT is charged?",["₹62.43","₹61.43","₹614.25","₹20.48"],1,"STT = premium × lot × lots × 0.15% = 210 × 65 × 3 × 0.0015 = ₹61.43."],[9,"You sell 5 lots of Nifty futures at 24,250. STT on futures sales is 0.05%. How much STT is charged?",["₹9,852","₹3,941","₹11,822","₹1,576"],1,"STT = price × 65 × lots × 0.05% = 24,250 × 65 × 5 × 0.0005 = ₹3,941."],[9,"Your long Nifty call ends 100 points in the money and is exercised for one lot. STT on exercise is 0.15% of intrinsic value. How much STT?",["₹9.75","₹0.15","₹97.50","₹3.25"],0,"STT = intrinsic × 65 × lots × 0.15% = 100 × 65 × 1 × 0.0015 = ₹9.75."],[9,"You want to buy 2 lots of a Nifty option at 285 and sell another 2 lots naked. Which side needs SPAN plus exposure margin?",["Both sides equally","Only the bought option","Neither side","Only the sold option"],3,"The buyer pays only the premium (₹37,050 here). The seller has open-ended risk, so the clearing corporation blocks SPAN plus exposure margin. Check the exact amount in your broker's margin calculator."],[10,"A stock's MWPL is 300 lakh shares. At end of day its market-wide futures equivalent OI is 264 lakh. Does it enter the F&O ban?",["No, it stays out of the ban","Yes, but only after 30 days","Yes, it enters the ban from the next trading day","Only if the stock price falls"],0,"Utilisation = 264 ÷ 300 = 88%. The ban starts when OI is above 95% of MWPL at end of day."],[10,"A stock's MWPL is 825 lakh shares and its futures equivalent OI is 775.5 lakh. What is its MWPL utilisation?",["106.4%","47%","6%","94%"],3,"Utilisation = OI ÷ MWPL × 100 = 775.5 ÷ 825 × 100 = 94%. It is getting close to the 95% ban trigger."],[10,"A stock has a free float of 16,500 lakh shares and 65 × its average daily delivery value works out to 6,000 lakh shares. Under the October 2025 formula, what is its MWPL?",["1,650 lakh shares","2,475 lakh shares","6,000 lakh shares","3,300 lakh shares"],1,"MWPL = lower of 15% of free float (2,475) and 65 × ADDV (6,000), but not below 10% of free float (1,650). The free float limb is lower: 2,475 lakh shares."],[10,"During a ban, a trader's futures equivalent position in the stock moves from −8 to −4. What is the violation under NSE Clearing's 2025 method?",["8","No violation","4","1"],1,"The position shrank in the same direction, which is allowed during a ban."],[10,"The value of a trader's ban-period violation in a stock on one day is ₹1,50,00,000. Under NSE Clearing's 2025 rules (1%, minimum ₹5,000, maximum ₹1,00,000), what is the penalty?",["₹5,000","₹15,00,000","₹1,00,000","₹1,50,000"],2,"1% of ₹1,50,00,000 is ₹1,50,000. The penalty is capped between ₹5,000 and ₹1,00,000, so it is ₹1,00,000 for that day."],[12,"Your trading capital is ₹1,00,000 and you risk 2% per trade. How much can you lose on one trade?",["₹20,000","₹200","₹3,000","₹2,000"],3,"Risk per trade = ₹1,00,000 × 2% = ₹2,000."],[12,"Capital ₹3,00,000, risk 2% per trade, and your stop is 25 points away on a Nifty option (lot 65). How many lots can you trade at most?",["240 lots","3 lots","6 lots","4 lots"],1,"Risk per lot = 25 × 65 = ₹1,625. Allowed risk = ₹6,000. ₹6,000 ÷ ₹1,625 = 3.69, so 3 lots."],[12,"Your account falls 30%. What gain do you need to get back to where you started?",["15%","30%","45%","42.9%"],3,"Gain needed = loss ÷ (100 − loss) = 30 ÷ 70 = 42.9%. Losses hurt more than equal gains help."],[12,"You buy an option at 175 with a stop at 145 and a target at 265. What is the risk-reward ratio?",["1 : 3.5","1 : 3","1 : 0.3","1 : 4"],1,"Risk = 30 points, reward = 90 points. 90 ÷ 30 = 3, so 1 : 3."],[12,"A strategy wins 50% of trades with an average win of ₹4,000 and loses 50% with an average loss of ₹2,500. What is its expectancy per trade?",["₹1,500","₹750","−₹750","₹2,000"],1,"Expectancy = 50% × ₹4,000 − 50% × ₹2,500 = ₹750. Positive before costs."],[12,"Your account peaked at ₹5,00,000 and later fell to ₹4,40,000. What is the drawdown?",["12%","88%","1.2%","24%"],0,"Drawdown = (peak − low) ÷ peak = ₹60,000 ÷ ₹5,00,000 = 12%."],[3,"Nifty is at 25,100. What is the intrinsic value of the 24,700 call?",["26,000","−400","400","0"],2,"Call intrinsic value = spot − strike = 25,100 − 24,700 = 400 points. It is never below zero."],[3,"Nifty is at 23,050. What is the intrinsic value of the 23,300 put?",["0","250","−250","16,250"],1,"Put intrinsic value = strike − spot = 23,300 − 23,050 = 250 points."],[3,"Nifty is at 24,250. What is the intrinsic value of the 24,650 call?",["−400","400","0","200"],2,"The 24,650 call is out of the money: spot is below the strike. Intrinsic value cannot go below zero, so it is 0. All of its premium is time value."],[3,"Nifty is at 24,550 and the 24,450 call trades at 210. How much of the premium is time value?",["100","110","210","310"],1,"Intrinsic value = 24,550 − 24,450 = 100. Time value = premium − intrinsic = 210 − 100 = 110."],[3,"Nifty is at 25,450 and the 25,750 put trades at 374. How much of the premium is time value?",["374","300","674","74"],3,"Intrinsic value = 25,750 − 25,450 = 300. Time value = 374 − 300 = 74."],[3,"Nifty is at 22,600. The 22,400 call is:",["At the money","In the money","Out of the money","Already expired"],1,"A call is in the money when spot is above the strike. Here spot is above 22,400, so it is in the money."],[4,"An option trades at 350 points. What does a buyer pay for one lot of Nifty (lot size 65)?",["₹350","₹26,250","₹8,750","₹22,750"],3,"Premium in rupees = points × lot size × lots = 350 × 65 × 1 = ₹22,750."],[4,"Ignoring interest and dividends, Nifty is at 25,250 and the 24,950 call trades at 386. By put-call parity, the 24,950 put should trade near:",["86","686","300","386"],0,"Without carry, call − put = spot − strike. So put = 386 − (25,250 − 24,950) = 86. In real markets interest makes the call a little dearer."],[4,"An option has intrinsic value 100 and time value 129. What is its premium?",["229","29","129","100"],0,"Premium = intrinsic value + time value = 100 + 129 = 229."],[4,"You buy 2 lots of a Nifty option at 80 and sell at 40. What is the gross P&L before costs?",["−₹80","−₹6,000","₹5,200","−₹5,200"],3,"P&L = (sell − buy) × 65 × lots = (40 − 80) × 65 × 2 = −₹5,200."],[2,"You buy 5 lots of Nifty futures at 25,500 and sell at 25,420. What is the gross P&L?",["−₹30,000","−₹26,000","−₹400","₹26,000"],1,"Long futures P&L = (sell − buy) × 65 × lots = −80 × 65 × 5 = −₹26,000."],[2,"You short 5 lots of Nifty futures at 22,950 and buy back at 22,850. What is the gross P&L?",["₹32,500","₹500","−₹32,500","₹37,500"],0,"Short futures gain when the price falls. P&L = (sell − buy) × 65 × lots = (22,950 − 22,850) × 65 × 5 = ₹32,500."],[2,"Nifty futures trade at 22,450. What is the contract value of one lot (lot size 65)?",["₹16,83,750","₹5,61,250","₹14,59,250","₹22,450"],2,"Contract value = price × lot size × lots = 22,450 × 65 × 1 = ₹14,59,250."],[2,"Nifty spot is 22,050 and the near-month future is 22,085. What is the basis (future − spot)?",["2,275","−35","35","22,085"],2,"Basis = 22,085 − 22,050 = 35 points. A future above spot is normal: it reflects the cost of carry."],[2,"You are long one lot of Nifty futures. Yesterday's settlement price was 22,200 and today's is 22,155. What is today's mark-to-market?",["₹325","₹2,925","−₹45","−₹2,925"],3,"MTM settles the change from one day's settlement price to the next: (22,155 − 22,200) × 65 = −₹2,925."],[5,"A call has delta 0.65. If Nifty rises 60 points, roughly how much does the call gain?",["60","39","21","2,535"],1,"Change ≈ delta × move = 0.65 × 60 = 39 points, ignoring gamma and time."],[5,"A put has delta −0.45. If Nifty falls 150 points, roughly how much does the put gain?",["4,387.5","150","67.5","−67.5"],2,"Change ≈ delta × move = −0.45 × (−150) = +67.5 points. Puts gain when the market falls."],[5,"A long Nifty option has theta of −4 points a day. All else equal, about how much does one lot lose in 3 days?",["₹260","₹900","₹12","₹780"],3,"Loss ≈ theta × days × lot = 4 × 3 × 65 = ₹780. Theta grows near expiry, so this is only an estimate."],[5,"An option has vega 25. If implied volatility rises by 2 points, its price changes by about:",["2","50","25","−50"],1,"Change ≈ vega × change in IV = 25 × 2 = 50 points."],[5,"You are long 3 lots of Nifty calls with delta 0.25. What is your position delta in Nifty units (lot 65)?",["16.3","0.8","48.8","195"],2,"Position delta = delta × lots × lot size = 0.25 × 3 × 65 = 48.8. The position moves like that many units of Nifty."],[5,"A call has delta 0.55 and gamma 0.002. After a 50-point rise in Nifty, its delta is about:",["0.45","0.65","0.10","0.55"],1,"New delta ≈ delta + gamma × move = 0.55 + 0.002 × 50 = 0.65."],[6,"Nifty is at 25,300 and implied volatility is 13%. Using spot × IV × √(days ÷ 365), what is the expected one standard deviation move over 7 days?",["About 63 points","About 3,289 points","About 911 points","About 455 points"],3,"25,300 × 13% × √(7 ÷ 365) ≈ 455 points. Roughly two times in three, Nifty should end within this range."],[6,"India VIX is 10. Using √365, roughly what daily move in Nifty does that imply?",["About 2.74%","About 0.83%","About 10.00%","About 0.52%"],3,"Daily move ≈ annual volatility ÷ √365 = 10 ÷ 19.1 ≈ 0.52%. Some traders use √252 trading days instead, which gives a slightly bigger number."],[6,"Implied volatility is 14% a year. About what percentage move is priced in for 91 days?",["About 14%","About 3.5%","About 7.5%","About 7%"],3,"Scale volatility by the square root of time: 14% × √(91 ÷ 365) ≈ 7%."],[7,"You buy the Nifty 23,800 call for 193. What is the breakeven at expiry?",["23,800","24,186","23,993","23,607"],2,"Long call breakeven = strike + premium = 23,800 + 193 = 23,993."],[7,"You buy the Nifty 25,250 put for 152. What is the breakeven at expiry?",["24,946","25,402","25,250","25,098"],3,"Long put breakeven = strike − premium = 25,250 − 152 = 25,098."],[7,"You sell the Nifty 24,350 put for 173. What is the breakeven at expiry?",["24,523","24,350","24,177","173"],2,"Short put breakeven = strike − premium received = 24,350 − 173 = 24,177. Below that the seller loses."],[7,"You buy 2 lots of the Nifty 23,550 call for 201. What is your maximum loss?",["₹26,130","₹30,61,500","₹402","₹30,150"],0,"A buyer can lose at most the premium: 201 × 65 × 2 = ₹26,130."],[7,"You bought one lot of the Nifty 22,950 call for 248. Nifty settles at 23,150 on expiry. What is your P&L?",["−₹3,120","−₹2,470","₹13,000","₹3,120"],0,"Payoff = max(23,150 − 22,950, 0) − 248 = −48 points × 65 = −₹3,120."],[7,"You bought one lot of the Nifty 22,650 put for 166. Nifty settles at 22,500 on expiry. What is your P&L?",["−₹1,040","₹1,040","₹9,750","−₹390"],0,"Payoff = max(22,650 − 22,500, 0) − 166 = −16 points × 65 = −₹1,040."],[7,"You sold one lot of the Nifty 22,700 put for 204. Nifty settles at 22,450 on expiry. What is your P&L?",["₹2,990","₹16,250","−₹2,990","₹13,260"],2,"Short put P&L = premium − max(strike − settlement, 0) = 204 − 250 = −46 points × 65 = −₹2,990."],[7,"Bull call spread: buy the 23,850 call at 143 and sell the 24,150 call at 86. What is the maximum profit for one lot?",["₹15,795","₹3,705","₹23,205","₹19,500"],0,"Max profit = (strike width − net debit) × 65 = (300 − 57) × 65 = ₹15,795, reached above 24,150."],[7,"Bear put spread: buy the 24,450 put at 170 and sell the 24,250 put at 103. What is the breakeven?",["24,517","24,317","24,183","24,383"],3,"Net debit = 170 − 103 = 67. Breakeven = higher strike − debit = 24,450 − 67 = 24,383."],[7,"Bull put spread: sell the 24,250 put and buy the 24,150 put for a net credit of 50. What is the breakeven?",["24,250","24,100","24,300","24,200"],3,"Breakeven = short put strike − credit = 24,250 − 50 = 24,200."],[7,"Bear call spread: sell the 25,350 call and buy the 25,450 call for a net credit of 36. What is the breakeven?",["25,486","25,314","25,386","25,414"],2,"Breakeven = short call strike + credit = 25,350 + 36 = 25,386."],[7,"Long straddle at 22,150: the call is 155 and the put is 238. What are the breakevens at expiry?",["21,995 and 22,388","21,757 and 22,543","21,912 and 22,305","21,954 and 22,347"],1,"Total premium = 155 + 238 = 393. Breakevens = strike ± total premium = 21,757 and 22,543. The buyer profits outside this range."],[7,"Long strangle: buy the 24,150 put at 82 and the 24,550 call at 67. What are the breakevens at expiry?",["24,150 and 24,550","24,068 and 24,617","24,001 and 24,699","24,299 and 24,401"],2,"Total premium = 149. Lower breakeven = put strike − total = 24,001. Upper = call strike + total = 24,699."],[7,"Iron condor: sell the 21,950 put and 22,550 call, buy the 21,850 put and 22,650 call, for a net credit of 39. What is the maximum loss for one lot?",["₹6,500","₹3,965","₹2,535","₹10,465"],1,"Max loss = (wing width − credit) × 65 = (100 − 39) × 65 = ₹3,965. Only one side can lose at expiry."],[7,"Long call butterfly: buy the 23,850 call, sell two 24,000 calls, buy the 24,150 call, for a net debit of 36. What is the maximum profit per lot?",["₹7,410","₹2,340","₹17,160","₹9,750"],0,"At 24,000 on expiry the 23,850 call is worth 150 and the rest expire worthless. Max profit = (150 − 36) × 65 = ₹7,410."],[7,"You hold Nifty futures bought at 24,250 and sell the 24,550 call for 126 (a covered call). What is the most you can make per lot at expiry?",["₹19,500","₹11,310","₹27,690","₹8,190"],2,"Above the strike, gains stop: (strike − entry + premium) × 65 = (24,550 − 24,250 + 126) × 65 = ₹27,690."],[8,"Total put open interest is 125 lakh contracts and total call open interest is 110 lakh. What is the PCR (OI)?",["1.34","0.88","2.14","1.14"],3,"PCR = put OI ÷ call OI = 125 ÷ 110 = 1.14. More put OI than call OI."],[8,"A stock future moves from 1,760 to 1,785 and its open interest goes from 22 lakh to 16 lakh shares. This is:",["Short covering","Long unwinding","Short build-up","Long build-up"],0,"Price up with OI down = short covering. Shorts are buying back."],[8,"Open interest at a strike was 104 lakh at the start of the day and the chain shows change in OI of −6 lakh. What is the OI now?",["110 lakh","98 lakh","−6 lakh","104 lakh"],1,"OI now = 104 − 6 = 98 lakh. Positions were closed."],[9,"You sell one lot of a Nifty option at 183. STT on option sales is 0.15% of the premium. How much STT is charged?",["₹5.95","₹18.84","₹17.84","₹178.43"],2,"STT = premium × lot × lots × 0.15% = 183 × 65 × 1 × 0.0015 = ₹17.84."],[9,"You sell 2 lots of Nifty futures at 22,500. STT on futures sales is 0.05%. How much STT is charged?",["₹4,388","₹3,656","₹1,463","₹585"],2,"STT = price × 65 × lots × 0.05% = 22,500 × 65 × 2 × 0.0005 = ₹1,463."],[9,"Your long Nifty call ends 50 points in the money and is exercised for 3 lots. STT on exercise is 0.15% of intrinsic value. How much STT?",["₹14.63","₹146.25","₹0.23","₹4.88"],0,"STT = intrinsic × 65 × lots × 0.15% = 50 × 65 × 3 × 0.0015 = ₹14.63."],[9,"You want to buy 3 lots of a Nifty option at 92 and sell another 3 lots naked. Which side needs SPAN plus exposure margin?",["Only the bought option","Neither side","Both sides equally","Only the sold option"],3,"The buyer pays only the premium (₹17,940 here). The seller has open-ended risk, so the clearing corporation blocks SPAN plus exposure margin. Check the exact amount in your broker's margin calculator."],[10,"A stock's MWPL is 725 lakh shares. At end of day its market-wide futures equivalent OI is 609 lakh. Does it enter the F&O ban?",["No, it stays out of the ban","Only if the stock price falls","Yes, it enters the ban from the next trading day","Yes, but only after 30 days"],0,"Utilisation = 609 ÷ 725 = 84%. The ban starts when OI is above 95% of MWPL at end of day."],[10,"A stock's MWPL is 475 lakh shares and its futures equivalent OI is 213.8 lakh. What is its MWPL utilisation?",["45%","22.5%","55%","222.2%"],0,"Utilisation = OI ÷ MWPL × 100 = 213.8 ÷ 475 × 100 = 45%. It is well below the 95% ban trigger."],[10,"A stock is in the F&O ban. Its combined futures equivalent OI across exchanges has fallen to 80% of MWPL. Can fresh positions be taken?",["No, it stays in the ban","Yes, normal trading resumes","Only option buyers can trade","Only after the next quarter"],1,"A stock leaves the ban only when combined OI is at or below 80% of MWPL. 80% is at or below that level."],[10,"A stock has a free float of 24,500 lakh shares and 65 × its average daily delivery value works out to 3,100 lakh shares. Under the October 2025 formula, what is its MWPL?",["3,100 lakh shares","3,675 lakh shares","4,900 lakh shares","2,450 lakh shares"],0,"MWPL = lower of 15% of free float (3,675) and 65 × ADDV (3,100), but not below 10% of free float (2,450). The delivery limb is lower: 3,100 lakh shares."],[10,"During a ban, a trader's futures equivalent position in the stock moves from −10 to −13. What is the violation under NSE Clearing's 2025 method?",["10","13","3","4"],2,"The position grew in the same direction by 3, which counts as the violation."],[10,"The value of a trader's ban-period violation in a stock on one day is ₹90,00,000. Under NSE Clearing's 2025 rules (1%, minimum ₹5,000, maximum ₹1,00,000), what is the penalty?",["₹9,00,000","₹90,000","₹5,000","₹1,00,000"],1,"1% of ₹90,00,000 is ₹90,000. The penalty is capped between ₹5,000 and ₹1,00,000, so it is ₹90,000 for that day."],[12,"Your trading capital is ₹3,00,000 and you risk 2% per trade. How much can you lose on one trade?",["₹600","₹9,000","₹6,000","₹60,000"],2,"Risk per trade = ₹3,00,000 × 2% = ₹6,000."],[12,"Capital ₹5,00,000, risk 1% per trade, and your stop is 25 points away on a Nifty option (lot 65). How many lots can you trade at most?",["200 lots","6 lots","4 lots","3 lots"],3,"Risk per lot = 25 × 65 = ₹1,625. Allowed risk = ₹5,000. ₹5,000 ÷ ₹1,625 = 3.08, so 3 lots."],[12,"You buy an option at 184 with a stop at 124 and a target at 334. What is the risk-reward ratio?",["1 : 3.5","1 : 2.5","1 : 3","1 : 0.4"],1,"Risk = 60 points, reward = 150 points. 150 ÷ 60 = 2.5, so 1 : 2.5."],[12,"A strategy wins 60% of trades with an average win of ₹6,000 and loses 40% with an average loss of ₹4,000. What is its expectancy per trade?",["₹2,000","₹2,100","−₹2,000","₹3,600"],0,"Expectancy = 60% × ₹6,000 − 40% × ₹4,000 = ₹2,000. Positive before costs."],[12,"Your account peaked at ₹8,00,000 and later fell to ₹7,04,000. What is the drawdown?",["12%","24%","88%","1.2%"],0,"Drawdown = (peak − low) ÷ peak = ₹96,000 ÷ ₹8,00,000 = 12%."],[3,"Nifty is at 22,350. What is the intrinsic value of the 22,100 call?",["250","16,250","−250","0"],0,"Call intrinsic value = spot − strike = 22,350 − 22,100 = 250 points. It is never below zero."],[3,"Nifty is at 22,950. What is the intrinsic value of the 23,200 put?",["0","16,250","−250","250"],3,"Put intrinsic value = strike − spot = 23,200 − 22,950 = 250 points."],[3,"Nifty is at 25,000. What is the intrinsic value of the 25,300 call?",["300","−300","150","0"],3,"The 25,300 call is out of the money: spot is below the strike. Intrinsic value cannot go below zero, so it is 0. All of its premium is time value."],[3,"Nifty is at 25,050 and the 24,750 call trades at 378. How much of the premium is time value?",["300","78","678","378"],1,"Intrinsic value = 25,050 − 24,750 = 300. Time value = premium − intrinsic = 378 − 300 = 78."],[3,"Nifty is at 22,750 and the 22,850 put trades at 178. How much of the premium is time value?",["100","278","78","178"],2,"Intrinsic value = 22,850 − 22,750 = 100. Time value = 178 − 100 = 78."],[3,"Nifty is at 23,400. The 23,700 call is:",["Already expired","At the money","Out of the money","In the money"],2,"A call is in the money when spot is above the strike. Here spot is below 23,700, so it is out of the money."],[4,"An option trades at 72 points. What does a buyer pay for one lot of Nifty (lot size 65)?",["₹4,680","₹5,400","₹1,800","₹72"],0,"Premium in rupees = points × lot size × lots = 72 × 65 × 1 = ₹4,680."],[4,"Ignoring interest and dividends, Nifty is at 24,650 and the 24,450 call trades at 306. By put-call parity, the 24,450 put should trade near:",["506","306","200","106"],3,"Without carry, call − put = spot − strike. So put = 306 − (24,650 − 24,450) = 106. In real markets interest makes the call a little dearer."],[4,"An option has intrinsic value 250 and time value 155. What is its premium?",["155","250","405","95"],2,"Premium = intrinsic value + time value = 250 + 155 = 405."],[4,"You buy 3 lots of a Nifty option at 168 and sell at 198. What is the gross P&L before costs?",["₹6,750","₹5,850","−₹5,850","₹90"],1,"P&L = (sell − buy) × 65 × lots = (198 − 168) × 65 × 3 = ₹5,850."],[2,"You buy one lot of Nifty futures at 24,900 and sell at 24,960. What is the gross P&L?",["−₹3,900","₹3,900","₹4,500","₹60"],1,"Long futures P&L = (sell − buy) × 65 × lots = 60 × 65 × 1 = ₹3,900."],[2,"You short 4 lots of Nifty futures at 25,200 and buy back at 25,050. What is the gross P&L?",["₹39,000","−₹39,000","₹45,000","₹600"],0,"Short futures gain when the price falls. P&L = (sell − buy) × 65 × lots = (25,200 − 25,050) × 65 × 4 = ₹39,000."],[2,"Nifty futures trade at 22,500. What is the contract value of one lot (lot size 65)?",["₹14,62,500","₹5,62,500","₹22,500","₹16,87,500"],0,"Contract value = price × lot size × lots = 22,500 × 65 × 1 = ₹14,62,500."],[2,"Nifty spot is 23,800 and the near-month future is 23,785. What is the basis (future − spot)?",["−15","23,785","15","−975"],0,"Basis = 23,785 − 23,800 = −15 points. A future below spot can happen when dividends or selling pressure outweigh carry."],[2,"You are long one lot of Nifty futures. Yesterday's settlement price was 24,150 and today's is 24,080. What is today's mark-to-market?",["₹4,550","−₹70","−₹1,300","−₹4,550"],3,"MTM settles the change from one day's settlement price to the next: (24,080 − 24,150) × 65 = −₹4,550."],[5,"A call has delta 0.4. If Nifty rises 60 points, roughly how much does the call gain?",["60","36","1,560","24"],3,"Change ≈ delta × move = 0.4 × 60 = 24 points, ignoring gamma and time."],[5,"A put has delta −0.2. If Nifty falls 120 points, roughly how much does the put gain?",["120","1,560","−24","24"],3,"Change ≈ delta × move = −0.2 × (−120) = +24 points. Puts gain when the market falls."],[5,"An option has vega 18. If implied volatility rises by 1 point, its price changes by about:",["18","1","20","−18"],0,"Change ≈ vega × change in IV = 18 × 1 = 18 points."],[5,"You are long 3 lots of Nifty calls with delta 0.75. What is your position delta in Nifty units (lot 65)?",["195","48.8","146.3","2.3"],2,"Position delta = delta × lots × lot size = 0.75 × 3 × 65 = 146.3. The position moves like that many units of Nifty."],[5,"A call has delta 0.55 and gamma 0.002. After a 100-point rise in Nifty, its delta is about:",["0.75","0.55","0.20","0.35"],0,"New delta ≈ delta + gamma × move = 0.55 + 0.002 × 100 = 0.75."],[6,"Nifty is at 23,400 and implied volatility is 10%. Using spot × IV × √(days ÷ 365), what is the expected one standard deviation move over 14 days?",["About 458 points","About 2,340 points","About 917 points","About 90 points"],0,"23,400 × 10% × √(14 ÷ 365) ≈ 458 points. Roughly two times in three, Nifty should end within this range."],[6,"Implied volatility is 28% a year. About what percentage move is priced in for 91 days?",["About 28%","About 14%","About 7%","About 14.5%"],1,"Scale volatility by the square root of time: 28% × √(91 ÷ 365) ≈ 14%."],[7,"You buy the Nifty 23,700 call for 231. What is the breakeven at expiry?",["24,162","23,700","23,931","23,469"],2,"Long call breakeven = strike + premium = 23,700 + 231 = 23,931."],[7,"You buy the Nifty 23,600 put for 44. What is the breakeven at expiry?",["23,644","23,512","23,556","23,600"],2,"Long put breakeven = strike − premium = 23,600 − 44 = 23,556."],[7,"You sell the Nifty 24,200 put for 192. What is the breakeven at expiry?",["192","24,200","24,008","24,392"],2,"Short put breakeven = strike − premium received = 24,200 − 192 = 24,008. Below that the seller loses."],[7,"You buy 4 lots of the Nifty 25,500 call for 51. What is your maximum loss?",["₹204","₹13,260","₹15,300","₹66,30,000"],1,"A buyer can lose at most the premium: 51 × 65 × 4 = ₹13,260."],[7,"You bought one lot of the Nifty 22,550 call for 181. Nifty settles at 22,400 on expiry. What is your P&L?",["−₹11,765","₹11,765","₹0","−₹9,750"],0,"Payoff = max(22,400 − 22,550, 0) − 181 = −181 points × 65 = −₹11,765."],[7,"You bought one lot of the Nifty 24,950 put for 164. Nifty settles at 24,650 on expiry. What is your P&L?",["₹8,840","₹9,490","₹19,500","−₹8,840"],0,"Payoff = max(24,950 − 24,650, 0) − 164 = 136 points × 65 = ₹8,840."],[7,"You sold one lot of the Nifty 22,550 put for 196. Nifty settles at 22,150 on expiry. What is your P&L?",["₹13,260","₹26,000","₹12,740","−₹13,260"],3,"Short put P&L = premium − max(strike − settlement, 0) = 196 − 400 = −204 points × 65 = −₹13,260."],[7,"Bull call spread: buy the 22,150 call at 148 and sell the 22,350 call at 103. What is the maximum loss for one lot?",["₹9,620","₹13,000","₹10,075","₹2,925"],3,"Max loss = net debit × 65 = (148 − 103) × 65 = ₹2,925, if Nifty ends below 22,150."],[7,"Bear put spread: buy the 23,250 put at 134 and sell the 22,850 put at 103. What is the maximum profit for one lot?",["₹23,985","₹26,000","₹2,015","₹28,015"],0,"Max profit = (width − debit) × 65 = (400 − 31) × 65 = ₹23,985, reached below 22,850."],[7,"Bull put spread: sell the 24,850 put and buy the 24,650 put for a net credit of 65. What is the maximum loss for one lot?",["₹13,000","₹4,225","₹17,225","₹8,775"],3,"Max loss = (width − credit) × 65 = (200 − 65) × 65 = ₹8,775, if Nifty ends below 24,650."],[7,"Bear call spread: sell the 24,750 call and buy the 24,850 call for a net credit of 40. What is the breakeven?",["24,890","24,790","24,710","24,810"],1,"Breakeven = short call strike + credit = 24,750 + 40 = 24,790."],[7,"Long straddle at 23,650: the call is 249 and the put is 217. What are the breakevens at expiry?",["23,417 and 23,883","23,184 and 24,116","23,401 and 23,867","23,433 and 23,899"],1,"Total premium = 249 + 217 = 466. Breakevens = strike ± total premium = 23,184 and 24,116. The buyer profits outside this range."],[7,"Long strangle: buy the 21,950 put at 95 and the 22,350 call at 71. What are the breakevens at expiry?",["21,950 and 22,350","22,116 and 22,184","21,855 and 22,421","21,784 and 22,516"],3,"Total premium = 166. Lower breakeven = put strike − total = 21,784. Upper = call strike + total = 22,516."],[7,"Iron condor: sell the 24,250 put and 25,050 call, buy the 24,150 put and 25,150 call, for a net credit of 40. What is the maximum loss for one lot?",["₹3,900","₹2,600","₹10,400","₹6,500"],0,"Max loss = (wing width − credit) × 65 = (100 − 40) × 65 = ₹3,900. Only one side can lose at expiry."],[7,"Long call butterfly: buy the 24,550 call, sell two 24,700 calls, buy the 24,850 call, for a net debit of 50. What is the maximum profit per lot?",["₹16,250","₹9,750","₹6,500","₹3,250"],2,"At 24,700 on expiry the 24,550 call is worth 150 and the rest expire worthless. Max profit = (150 − 50) × 65 = ₹6,500."],[7,"You hold Nifty futures bought at 24,350 and sell the 24,550 call for 41 (a covered call). What is the most you can make per lot at expiry?",["₹10,335","₹13,000","₹15,665","₹2,665"],2,"Above the strike, gains stop: (strike − entry + premium) × 65 = (24,550 − 24,350 + 41) × 65 = ₹15,665."],[8,"Total put open interest is 110 lakh contracts and total call open interest is 100 lakh. What is the PCR (OI)?",["1.10","1.30","2.10","0.91"],0,"PCR = put OI ÷ call OI = 110 ÷ 100 = 1.10. More put OI than call OI."],[8,"A stock future moves from 1,060 to 1,085 and its open interest goes from 84 lakh to 81 lakh shares. This is:",["Short build-up","Long build-up","Long unwinding","Short covering"],3,"Price up with OI down = short covering. Shorts are buying back."],[8,"Open interest at a strike was 108 lakh at the start of the day and the chain shows change in OI of +16 lakh. What is the OI now?",["124 lakh","16 lakh","92 lakh","108 lakh"],0,"OI now = 108 + 16 = 124 lakh. New positions were added."],[9,"You sell 5 lots of a Nifty option at 198. STT on option sales is 0.15% of the premium. How much STT is charged?",["₹96.53","₹32.18","₹965.25","₹32.17"],0,"STT = premium × lot × lots × 0.15% = 198 × 65 × 5 × 0.0015 = ₹96.53."],[9,"You sell one lot of Nifty futures at 23,600. STT on futures sales is 0.05%. How much STT is charged?",["₹1,918","₹2,301","₹767","₹307"],2,"STT = price × 65 × lots × 0.05% = 23,600 × 65 × 1 × 0.0005 = ₹767."],[9,"Your long Nifty call ends 300 points in the money and is exercised for one lot. STT on exercise is 0.15% of intrinsic value. How much STT?",["₹0.45","₹292.50","₹9.75","₹29.25"],3,"STT = intrinsic × 65 × lots × 0.15% = 300 × 65 × 1 × 0.0015 = ₹29.25."],[9,"You want to buy 5 lots of a Nifty option at 100 and sell another 5 lots naked. Which side needs SPAN plus exposure margin?",["Only the bought option","Both sides equally","Only the sold option","Neither side"],2,"The buyer pays only the premium (₹32,500 here). The seller has open-ended risk, so the clearing corporation blocks SPAN plus exposure margin. Check the exact amount in your broker's margin calculator."],[10,"A stock's MWPL is 600 lakh shares. At end of day its market-wide futures equivalent OI is 594 lakh. Does it enter the F&O ban?",["Yes, but only after 30 days","No, it stays out of the ban","Yes, it enters the ban from the next trading day","Only if the stock price falls"],2,"Utilisation = 594 ÷ 600 = 99%. The ban starts when OI is above 95% of MWPL at end of day."],[10,"A stock's MWPL is 325 lakh shares and its futures equivalent OI is 253.5 lakh. What is its MWPL utilisation?",["39%","78%","128.2%","22%"],1,"Utilisation = OI ÷ MWPL × 100 = 253.5 ÷ 325 × 100 = 78%. It is well below the 95% ban trigger."],[10,"A stock has a free float of 12,500 lakh shares and 65 × its average daily delivery value works out to 3,500 lakh shares. Under the October 2025 formula, what is its MWPL?",["3,500 lakh shares","2,500 lakh shares","1,250 lakh shares","1,875 lakh shares"],3,"MWPL = lower of 15% of free float (1,875) and 65 × ADDV (3,500), but not below 10% of free float (1,250). The free float limb is lower: 1,875 lakh shares."],[10,"During a ban, a trader's futures equivalent position in the stock moves from −15 to −13. What is the violation under NSE Clearing's 2025 method?",["2","13","15","No violation"],3,"The position shrank in the same direction, which is allowed during a ban."],[10,"The value of a trader's ban-period violation in a stock on one day is ₹3,00,000. Under NSE Clearing's 2025 rules (1%, minimum ₹5,000, maximum ₹1,00,000), what is the penalty?",["₹1,00,000","₹30,000","₹3,000","₹5,000"],3,"1% of ₹3,00,000 is ₹3,000. The penalty is capped between ₹5,000 and ₹1,00,000, so it is ₹5,000 for that day."],[12,"Capital ₹10,00,000, risk 2% per trade, and your stop is 50 points away on a Nifty option (lot 65). How many lots can you trade at most?",["12 lots","400 lots","6 lots","7 lots"],2,"Risk per lot = 50 × 65 = ₹3,250. Allowed risk = ₹20,000. ₹20,000 ÷ ₹3,250 = 6.15, so 6 lots."],[12,"You buy an option at 117 with a stop at 77 and a target at 237. What is the risk-reward ratio?",["1 : 4","1 : 0.3","1 : 3","1 : 3.5"],2,"Risk = 40 points, reward = 120 points. 120 ÷ 40 = 3, so 1 : 3."],[12,"A strategy wins 80% of trades with an average win of ₹8,000 and loses 20% with an average loss of ₹4,000. What is its expectancy per trade?",["−₹5,600","₹4,000","₹5,600","₹6,400"],2,"Expectancy = 80% × ₹8,000 − 20% × ₹4,000 = ₹5,600. Positive before costs."],[12,"Your account peaked at ₹12,00,000 and later fell to ₹9,00,000. What is the drawdown?",["2.5%","75%","25%","50%"],2,"Drawdown = (peak − low) ÷ peak = ₹3,00,000 ÷ ₹12,00,000 = 25%."],[3,"Nifty is at 22,750. What is the intrinsic value of the 22,550 call?",["200","0","13,000","−200"],0,"Call intrinsic value = spot − strike = 22,750 − 22,550 = 200 points. It is never below zero."],[3,"Nifty is at 24,450. What is the intrinsic value of the 24,850 put?",["−400","26,000","400","0"],2,"Put intrinsic value = strike − spot = 24,850 − 24,450 = 400 points."],[3,"Nifty is at 23,900. What is the intrinsic value of the 24,300 call?",["−400","0","200","400"],1,"The 24,300 call is out of the money: spot is below the strike. Intrinsic value cannot go below zero, so it is 0. All of its premium is time value."],[3,"Nifty is at 22,400 and the 22,300 call trades at 217. How much of the premium is time value?",["117","217","100","317"],0,"Intrinsic value = 22,400 − 22,300 = 100. Time value = premium − intrinsic = 217 − 100 = 117."],[3,"Nifty is at 22,000 and the 22,200 put trades at 278. How much of the premium is time value?",["278","478","78","200"],2,"Intrinsic value = 22,200 − 22,000 = 200. Time value = 278 − 200 = 78."],[3,"Nifty is at 22,100. The 21,600 put is:",["Out of the money","In the money","Already expired","At the money"],0,"A put is in the money when spot is below the strike. Here spot is above 21,600, so it is out of the money."],[4,"An option trades at 210 points. What does a buyer pay for 4 lots of Nifty (lot size 65)?",["₹21,000","₹840","₹54,600","₹63,000"],2,"Premium in rupees = points × lot size × lots = 210 × 65 × 4 = ₹54,600."],[4,"Ignoring interest and dividends, Nifty is at 22,350 and the 22,250 call trades at 256. By put-call parity, the 22,250 put should trade near:",["100","256","156","356"],2,"Without carry, call − put = spot − strike. So put = 256 − (22,350 − 22,250) = 156. In real markets interest makes the call a little dearer."],[4,"An option has intrinsic value 0 and time value 59. What is its premium?",["59","49","118","69"],0,"Premium = intrinsic value + time value = 0 + 59 = 59."],[4,"You buy 3 lots of a Nifty option at 110 and sell at 150. What is the gross P&L before costs?",["₹7,800","₹9,000","₹120","−₹7,800"],0,"P&L = (sell − buy) × 65 × lots = (150 − 110) × 65 × 3 = ₹7,800."],[2,"You buy 3 lots of Nifty futures at 23,400 and sell at 23,460. What is the gross P&L?",["₹180","−₹11,700","₹11,700","₹13,500"],2,"Long futures P&L = (sell − buy) × 65 × lots = 60 × 65 × 3 = ₹11,700."],[2,"You short 3 lots of Nifty futures at 23,950 and buy back at 24,050. What is the gross P&L?",["−₹300","₹19,500","−₹19,500","−₹22,500"],2,"Short futures gain when the price falls. P&L = (sell − buy) × 65 × lots = (23,950 − 24,050) × 65 × 3 = −₹19,500."],[2,"Nifty futures trade at 23,300. What is the contract value of 4 lots (lot size 65)?",["₹93,200","₹23,30,000","₹69,90,000","₹60,58,000"],3,"Contract value = price × lot size × lots = 23,300 × 65 × 4 = ₹60,58,000."],[2,"Nifty spot is 22,000 and the near-month future is 22,020. What is the basis (future − spot)?",["1,300","22,020","20","−20"],2,"Basis = 22,020 − 22,000 = 20 points. A future above spot is normal: it reflects the cost of carry."],[2,"You are long one lot of Nifty futures. Yesterday's settlement price was 25,200 and today's is 25,280. What is today's mark-to-market?",["₹5,200","₹8,450","−₹5,200","₹80"],0,"MTM settles the change from one day's settlement price to the next: (25,280 − 25,200) × 65 = ₹5,200."],[5,"A call has delta 0.45. If Nifty rises 120 points, roughly how much does the call gain?",["120","66","54","3,510"],2,"Change ≈ delta × move = 0.45 × 120 = 54 points, ignoring gamma and time."],[5,"A put has delta −0.6. If Nifty falls 80 points, roughly how much does the put gain?",["3,120","48","−48","80"],1,"Change ≈ delta × move = −0.6 × (−80) = +48 points. Puts gain when the market falls."],[5,"A long Nifty option has theta of −5 points a day. All else equal, about how much does one lot lose in 1 day?",["₹390","₹325","₹375","₹5"],1,"Loss ≈ theta × days × lot = 5 × 1 × 65 = ₹325. Theta grows near expiry, so this is only an estimate."],[5,"An option has vega 25. If implied volatility falls by 1.5 points, its price changes by about:",["−1.5","25","37.5","−37.5"],3,"Change ≈ vega × change in IV = 25 × −1.5 = −37.5 points."],[5,"You hold 6 lots of Nifty calls with delta 0.5. About how many lots of Nifty futures should you sell to be delta neutral?",["4 lots","6 lots","12 lots","3 lots"],3,"Futures have delta 1. Calls give 0.5 × 6 = 3 lots of delta, so selling 3 lots of futures brings the total near zero."],[5,"You are long 5 lots of Nifty calls with delta 0.25. What is your position delta in Nifty units (lot 65)?",["1.3","325","81.3","16.3"],2,"Position delta = delta × lots × lot size = 0.25 × 5 × 65 = 81.3. The position moves like that many units of Nifty."],[5,"A call has delta 0.55 and gamma 0.0015. After a 100-point rise in Nifty, its delta is about:",["0.55","0.15","0.40","0.70"],3,"New delta ≈ delta + gamma × move = 0.55 + 0.0015 × 100 = 0.70."],[6,"Nifty is at 22,350 and implied volatility is 20%. Using spot × IV × √(days ÷ 365), what is the expected one standard deviation move over 30 days?",["About 367 points","About 2,563 points","About 4,470 points","About 1,282 points"],3,"22,350 × 20% × √(30 ÷ 365) ≈ 1,282 points. Roughly two times in three, Nifty should end within this range."],[7,"You buy the Nifty 23,550 call for 142. What is the breakeven at expiry?",["23,408","23,692","23,834","23,550"],1,"Long call breakeven = strike + premium = 23,550 + 142 = 23,692."],[7,"You buy the Nifty 25,200 put for 237. What is the breakeven at expiry?",["25,437","25,200","24,963","24,726"],2,"Long put breakeven = strike − premium = 25,200 − 237 = 24,963."],[7,"You sell the Nifty 23,500 put for 191. What is the breakeven at expiry?",["23,500","23,309","191","23,691"],1,"Short put breakeven = strike − premium received = 23,500 − 191 = 23,309. Below that the seller loses."],[7,"You buy 5 lots of the Nifty 23,850 call for 208. What is your maximum loss?",["₹67,600","₹78,000","₹77,51,250","₹1,040"],0,"A buyer can lose at most the premium: 208 × 65 × 5 = ₹67,600."],[7,"You bought one lot of the Nifty 23,900 call for 192. Nifty settles at 24,000 on expiry. What is your P&L?",["−₹5,980","₹6,500","₹5,980","−₹5,330"],0,"Payoff = max(24,000 − 23,900, 0) − 192 = −92 points × 65 = −₹5,980."],[7,"You bought one lot of the Nifty 23,300 put for 59. Nifty settles at 23,250 on expiry. What is your P&L?",["₹65","₹3,250","−₹585","₹585"],2,"Payoff = max(23,300 − 23,250, 0) − 59 = −9 points × 65 = −₹585."],[7,"You sold one lot of the Nifty 22,850 put for 246. Nifty settles at 22,750 on expiry. What is your P&L?",["₹9,490","₹6,500","₹15,990","−₹9,490"],0,"Short put P&L = premium − max(strike − settlement, 0) = 246 − 100 = 146 points × 65 = ₹9,490."],[7,"Bull call spread: buy the 24,400 call at 214 and sell the 24,600 call at 150. What is the maximum profit for one lot?",["₹13,000","₹4,160","₹8,840","₹17,160"],2,"Max profit = (strike width − net debit) × 65 = (200 − 64) × 65 = ₹8,840, reached above 24,600."],[7,"Bear put spread: buy the 24,600 put at 242 and sell the 24,500 put at 205. What is the maximum profit for one lot?",["₹6,500","₹2,405","₹8,905","₹4,095"],3,"Max profit = (width − debit) × 65 = (100 − 37) × 65 = ₹4,095, reached below 24,500."],[7,"Bull put spread: sell the 23,250 put and buy the 23,150 put for a net credit of 54. What is the breakeven?",["23,204","23,096","23,304","23,196"],3,"Breakeven = short put strike − credit = 23,250 − 54 = 23,196."],[7,"Bear call spread: sell the 25,000 call and buy the 25,200 call for a net credit of 65. What is the maximum profit for one lot?",["₹8,775","₹8,450","₹4,225","₹13,000"],2,"Max profit = credit × 65 = 65 × 65 = ₹4,225, if Nifty stays below 25,000."],[7,"Short straddle at 23,900: the call is 148 and the put is 180. What are the breakevens at expiry?",["23,572 and 24,228","23,736 and 24,064","23,720 and 24,048","23,752 and 24,080"],0,"Total premium = 148 + 180 = 328. Breakevens = strike ± total premium = 23,572 and 24,228. The seller profits inside this range."],[7,"Long strangle: buy the 23,000 put at 72 and the 23,600 call at 72. What are the breakevens at expiry?",["23,144 and 23,456","23,000 and 23,600","22,856 and 23,744","22,928 and 23,672"],2,"Total premium = 144. Lower breakeven = put strike − total = 22,856. Upper = call strike + total = 23,744."],[7,"Iron condor: sell the 24,450 put and 25,050 call, buy the 24,350 put and 25,150 call, for a net credit of 64. What is the maximum loss for one lot?",["₹8,840","₹2,340","₹4,160","₹6,500"],1,"Max loss = (wing width − credit) × 65 = (100 − 64) × 65 = ₹2,340. Only one side can lose at expiry."],[7,"Long call butterfly: buy the 22,450 call, sell two 22,550 calls, buy the 22,650 call, for a net debit of 31. What is the maximum profit per lot?",["₹4,485","₹2,015","₹6,500","₹10,985"],0,"At 22,550 on expiry the 22,450 call is worth 100 and the rest expire worthless. Max profit = (100 − 31) × 65 = ₹4,485."],[7,"You hold Nifty futures bought at 23,400 and sell the 23,800 call for 118 (a covered call). What is the most you can make per lot at expiry?",["₹26,000","₹33,670","₹7,670","₹18,330"],1,"Above the strike, gains stop: (strike − entry + premium) × 65 = (23,800 − 23,400 + 118) × 65 = ₹33,670."],[8,"Total put open interest is 125 lakh contracts and total call open interest is 115 lakh. What is the PCR (OI)?",["1.09","0.92","2.09","1.29"],0,"PCR = put OI ÷ call OI = 125 ÷ 115 = 1.09. More put OI than call OI."],[8,"A stock future moves from 2,960 to 2,940 and its open interest goes from 54 lakh to 46 lakh shares. This is:",["Short covering","Short build-up","Long unwinding","Long build-up"],2,"Price down with OI down = long unwinding. Longs are exiting."],[8,"Open interest at a strike was 100 lakh at the start of the day and the chain shows change in OI of +12 lakh. What is the OI now?",["112 lakh","12 lakh","88 lakh","100 lakh"],0,"OI now = 100 + 12 = 112 lakh. New positions were added."],[9,"You sell one lot of a Nifty option at 91. STT on option sales is 0.15% of the premium. How much STT is charged?",["₹8.87","₹2.96","₹88.73","₹9.87"],0,"STT = premium × lot × lots × 0.15% = 91 × 65 × 1 × 0.0015 = ₹8.87."],[9,"You sell one lot of Nifty futures at 24,600. STT on futures sales is 0.05%. How much STT is charged?",["₹2,399","₹800","₹320","₹1,999"],1,"STT = price × 65 × lots × 0.05% = 24,600 × 65 × 1 × 0.0005 = ₹800."],[9,"Your long Nifty call ends 50 points in the money and is exercised for 4 lots. STT on exercise is 0.15% of intrinsic value. How much STT?",["₹195.00","₹19.50","₹6.50","₹0.30"],1,"STT = intrinsic × 65 × lots × 0.15% = 50 × 65 × 4 × 0.0015 = ₹19.50."],[9,"You want to buy 3 lots of a Nifty option at 277 and sell another 3 lots naked. Which side needs SPAN plus exposure margin?",["Neither side","Only the bought option","Only the sold option","Both sides equally"],2,"The buyer pays only the premium (₹54,015 here). The seller has open-ended risk, so the clearing corporation blocks SPAN plus exposure margin. Check the exact amount in your broker's margin calculator."],[10,"A stock's MWPL is 575 lakh shares. At end of day its market-wide futures equivalent OI is 569.3 lakh. Does it enter the F&O ban?",["No, it stays out of the ban","Yes, but only after 30 days","Only if the stock price falls","Yes, it enters the ban from the next trading day"],3,"Utilisation = 569.3 ÷ 575 = 99%. The ban starts when OI is above 95% of MWPL at end of day."],[10,"A stock's MWPL is 825 lakh shares and its futures equivalent OI is 709.5 lakh. What is its MWPL utilisation?",["86%","116.3%","43%","14%"],0,"Utilisation = OI ÷ MWPL × 100 = 709.5 ÷ 825 × 100 = 86%. It is getting close to the 95% ban trigger."],[10,"A stock is in the F&O ban. Its combined futures equivalent OI across exchanges has fallen to 88% of MWPL. Can fresh positions be taken?",["No, it stays in the ban","Only option buyers can trade","Only after the next quarter","Yes, normal trading resumes"],0,"A stock leaves the ban only when combined OI is at or below 80% of MWPL. 88% is above that level."],[10,"A stock has a free float of 24,500 lakh shares and 65 × its average daily delivery value works out to 5,500 lakh shares. Under the October 2025 formula, what is its MWPL?",["4,900 lakh shares","5,500 lakh shares","2,450 lakh shares","3,675 lakh shares"],3,"MWPL = lower of 15% of free float (3,675) and 65 × ADDV (5,500), but not below 10% of free float (2,450). The free float limb is lower: 3,675 lakh shares."],[10,"During a ban, a trader's futures equivalent position in the stock moves from 10 to 7. What is the violation under NSE Clearing's 2025 method?",["3","10","No violation","7"],2,"The position shrank in the same direction, which is allowed during a ban."],[10,"The value of a trader's ban-period violation in a stock on one day is ₹2,50,00,000. Under NSE Clearing's 2025 rules (1%, minimum ₹5,000, maximum ₹1,00,000), what is the penalty?",["₹25,00,000","₹5,000","₹2,50,000","₹1,00,000"],3,"1% of ₹2,50,00,000 is ₹2,50,000. The penalty is capped between ₹5,000 and ₹1,00,000, so it is ₹1,00,000 for that day."],[12,"Capital ₹5,00,000, risk 2% per trade, and your stop is 30 points away on a Nifty option (lot 65). How many lots can you trade at most?",["5 lots","6 lots","10 lots","333 lots"],0,"Risk per lot = 30 × 65 = ₹1,950. Allowed risk = ₹10,000. ₹10,000 ÷ ₹1,950 = 5.13, so 5 lots."],[12,"Your account falls 75%. What gain do you need to get back to where you started?",["300%","112.5%","75%","37.5%"],0,"Gain needed = loss ÷ (100 − loss) = 75 ÷ 25 = 300%. Losses hurt more than equal gains help."],[12,"You buy an option at 211 with a stop at 161 and a target at 311. What is the risk-reward ratio?",["1 : 0.5","1 : 2","1 : 3","1 : 2.5"],1,"Risk = 50 points, reward = 100 points. 100 ÷ 50 = 2, so 1 : 2."],[12,"A strategy wins 50% of trades with an average win of ₹6,000 and loses 50% with an average loss of ₹4,000. What is its expectancy per trade?",["−₹1,000","₹3,000","₹2,000","₹1,000"],3,"Expectancy = 50% × ₹6,000 − 50% × ₹4,000 = ₹1,000. Positive before costs."],[12,"Your account peaked at ₹10,00,000 and later fell to ₹7,50,000. What is the drawdown?",["75%","2.5%","25%","50%"],2,"Drawdown = (peak − low) ÷ peak = ₹2,50,000 ÷ ₹10,00,000 = 25%."],[3,"Nifty is at 24,050. What is the intrinsic value of the 23,850 call?",["−200","0","13,000","200"],3,"Call intrinsic value = spot − strike = 24,050 − 23,850 = 200 points. It is never below zero."],[3,"Nifty is at 23,800. What is the intrinsic value of the 23,950 put?",["−150","150","9,750","0"],1,"Put intrinsic value = strike − spot = 23,950 − 23,800 = 150 points."],[3,"Nifty is at 24,350. What is the intrinsic value of the 24,750 call?",["200","−400","0","400"],2,"The 24,750 call is out of the money: spot is below the strike. Intrinsic value cannot go below zero, so it is 0. All of its premium is time value."],[3,"Nifty is at 23,000 and the 22,900 call trades at 206. How much of the premium is time value?",["106","100","306","206"],0,"Intrinsic value = 23,000 − 22,900 = 100. Time value = premium − intrinsic = 206 − 100 = 106."],[3,"Nifty is at 25,450 and the 25,750 put trades at 342. How much of the premium is time value?",["642","300","342","42"],3,"Intrinsic value = 25,750 − 25,450 = 300. Time value = 342 − 300 = 42."],[3,"Nifty is at 24,450. The 24,650 call is:",["Already expired","Out of the money","In the money","At the money"],1,"A call is in the money when spot is above the strike. Here spot is below 24,650, so it is out of the money."],[4,"An option trades at 251 points. What does a buyer pay for 5 lots of Nifty (lot size 65)?",["₹81,575","₹94,125","₹31,375","₹1,255"],0,"Premium in rupees = points × lot size × lots = 251 × 65 × 5 = ₹81,575."],[4,"Ignoring interest and dividends, Nifty is at 22,600 and the 22,400 call trades at 339. By put-call parity, the 22,400 put should trade near:",["539","200","139","339"],2,"Without carry, call − put = spot − strike. So put = 339 − (22,600 − 22,400) = 139. In real markets interest makes the call a little dearer."],[4,"An option has intrinsic value 50 and time value 147. What is its premium?",["147","50","197","97"],2,"Premium = intrinsic value + time value = 50 + 147 = 197."],[4,"You buy one lot of a Nifty option at 206 and sell at 166. What is the gross P&L before costs?",["−₹40","−₹3,000","₹2,600","−₹2,600"],3,"P&L = (sell − buy) × 65 × lots = (166 − 206) × 65 × 1 = −₹2,600."],[2,"You buy 5 lots of Nifty futures at 23,550 and sell at 23,650. What is the gross P&L?",["₹500","₹32,500","₹37,500","−₹32,500"],1,"Long futures P&L = (sell − buy) × 65 × lots = 100 × 65 × 5 = ₹32,500."],[2,"You short 3 lots of Nifty futures at 23,750 and buy back at 23,850. What is the gross P&L?",["−₹22,500","−₹19,500","₹19,500","−₹300"],1,"Short futures gain when the price falls. P&L = (sell − buy) × 65 × lots = (23,750 − 23,850) × 65 × 3 = −₹19,500."],[2,"Nifty futures trade at 22,550. What is the contract value of one lot (lot size 65)?",["₹16,91,250","₹14,65,750","₹5,63,750","₹22,550"],1,"Contract value = price × lot size × lots = 22,550 × 65 × 1 = ₹14,65,750."],[2,"Nifty spot is 22,350 and the near-month future is 22,370. What is the basis (future − spot)?",["−20","1,300","22,370","20"],3,"Basis = 22,370 − 22,350 = 20 points. A future above spot is normal: it reflects the cost of carry."],[2,"You are long one lot of Nifty futures. Yesterday's settlement price was 23,000 and today's is 22,980. What is today's mark-to-market?",["−₹20","−₹1,300","₹1,950","₹1,300"],1,"MTM settles the change from one day's settlement price to the next: (22,980 − 23,000) × 65 = −₹1,300."],[5,"A call has delta 0.3. If Nifty rises 60 points, roughly how much does the call gain?",["42","60","1,170","18"],3,"Change ≈ delta × move = 0.3 × 60 = 18 points, ignoring gamma and time."],[5,"A put has delta −0.3. If Nifty falls 80 points, roughly how much does the put gain?",["−24","80","24","1,560"],2,"Change ≈ delta × move = −0.3 × (−80) = +24 points. Puts gain when the market falls."],[5,"A long Nifty option has theta of −10 points a day. All else equal, about how much does one lot lose in 1 day?",["₹650","₹10","₹715","₹750"],0,"Loss ≈ theta × days × lot = 10 × 1 × 65 = ₹650. Theta grows near expiry, so this is only an estimate."],[5,"An option has vega 6. If implied volatility rises by 3 points, its price changes by about:",["18","−18","3","6"],0,"Change ≈ vega × change in IV = 6 × 3 = 18 points."],[5,"You are long 4 lots of Nifty calls with delta 0.4. What is your position delta in Nifty units (lot 65)?",["260","1.6","104","26"],2,"Position delta = delta × lots × lot size = 0.4 × 4 × 65 = 104. The position moves like that many units of Nifty."],[5,"A call has delta 0.3 and gamma 0.0015. After a 150-point rise in Nifty, its delta is about:",["0.53","0.23","0.30","0.07"],0,"New delta ≈ delta + gamma × move = 0.3 + 0.0015 × 150 = 0.53."],[6,"Nifty is at 22,300 and implied volatility is 10%. Using spot × IV × √(days ÷ 365), what is the expected one standard deviation move over 14 days?",["About 873 points","About 86 points","About 437 points","About 2,230 points"],2,"22,300 × 10% × √(14 ÷ 365) ≈ 437 points. Roughly two times in three, Nifty should end within this range."],[6,"India VIX is 12. Using √365, roughly what daily move in Nifty does that imply?",["About 12.00%","About 0.63%","About 3.29%","About 1.00%"],1,"Daily move ≈ annual volatility ÷ √365 = 12 ÷ 19.1 ≈ 0.63%. Some traders use √252 trading days instead, which gives a slightly bigger number."],[6,"Implied volatility is 18% a year. About what percentage move is priced in for 182 days?",["About 13.2%","About 9%","About 12.7%","About 18%"],2,"Scale volatility by the square root of time: 18% × √(182 ÷ 365) ≈ 12.7%."],[7,"You buy the Nifty 22,650 call for 218. What is the breakeven at expiry?",["23,086","22,650","22,432","22,868"],3,"Long call breakeven = strike + premium = 22,650 + 218 = 22,868."],[7,"You buy the Nifty 22,650 put for 233. What is the breakeven at expiry?",["22,883","22,184","22,650","22,417"],3,"Long put breakeven = strike − premium = 22,650 − 233 = 22,417."],[7,"You sell the Nifty 23,400 put for 56. What is the breakeven at expiry?",["23,344","23,400","23,456","56"],0,"Short put breakeven = strike − premium received = 23,400 − 56 = 23,344. Below that the seller loses."],[7,"You buy 2 lots of the Nifty 24,000 call for 82. What is your maximum loss?",["₹10,660","₹12,300","₹31,20,000","₹164"],0,"A buyer can lose at most the premium: 82 × 65 × 2 = ₹10,660."],[7,"You bought one lot of the Nifty 25,200 call for 128. Nifty settles at 25,250 on expiry. What is your P&L?",["₹5,070","−₹5,070","₹3,250","−₹4,420"],1,"Payoff = max(25,250 − 25,200, 0) − 128 = −78 points × 65 = −₹5,070."],[7,"You bought one lot of the Nifty 25,050 put for 173. Nifty settles at 25,100 on expiry. What is your P&L?",["−₹3,250","₹0","₹11,245","−₹11,245"],3,"Payoff = max(25,050 − 25,100, 0) − 173 = −173 points × 65 = −₹11,245."],[7,"You sold one lot of the Nifty 25,450 put for 74. Nifty settles at 25,500 on expiry. What is your P&L?",["₹5,460","−₹3,250","₹4,810","−₹4,810"],2,"Short put P&L = premium − max(strike − settlement, 0) = 74 − 0 = 74 points × 65 = ₹4,810."],[7,"Bull call spread: buy the 25,500 call at 176 and sell the 25,800 call at 129. What is the breakeven?",["25,453","25,547","25,753","25,847"],1,"Net debit = 176 − 129 = 47. Breakeven = lower strike + debit = 25,500 + 47 = 25,547."],[7,"Bear put spread: buy the 25,350 put at 126 and sell the 25,050 put at 55. What is the maximum profit for one lot?",["₹24,115","₹4,615","₹14,885","₹19,500"],2,"Max profit = (width − debit) × 65 = (300 − 71) × 65 = ₹14,885, reached below 25,050."],[7,"Bull put spread: sell the 23,450 put and buy the 23,350 put for a net credit of 26. What is the breakeven?",["23,424","23,476","23,376","23,324"],0,"Breakeven = short put strike − credit = 23,450 − 26 = 23,424."],[7,"Bear call spread: sell the 25,400 call and buy the 25,500 call for a net credit of 48. What is the maximum profit for one lot?",["₹6,240","₹3,120","₹3,380","₹6,500"],1,"Max profit = credit × 65 = 48 × 65 = ₹3,120, if Nifty stays below 25,400."],[7,"Long straddle at 25,050: the call is 120 and the put is 147. What are the breakevens at expiry?",["24,783 and 25,317","24,903 and 25,170","24,917 and 25,184","24,930 and 25,197"],0,"Total premium = 120 + 147 = 267. Breakevens = strike ± total premium = 24,783 and 25,317. The buyer profits outside this range."],[7,"Long strangle: buy the 24,650 put at 101 and the 25,350 call at 50. What are the breakevens at expiry?",["24,549 and 25,400","24,801 and 25,199","24,499 and 25,501","24,650 and 25,350"],2,"Total premium = 151. Lower breakeven = put strike − total = 24,499. Upper = call strike + total = 25,501."],[7,"Iron condor: sell the 22,650 put and 23,650 call, buy the 22,550 put and 23,750 call, for a net credit of 60. What is the maximum loss for one lot?",["₹3,900","₹9,100","₹6,500","₹2,600"],3,"Max loss = (wing width − credit) × 65 = (100 − 60) × 65 = ₹2,600. Only one side can lose at expiry."],[7,"Long call butterfly: buy the 22,650 call, sell two 22,950 calls, buy the 23,250 call, for a net debit of 37. What is the maximum profit per lot?",["₹17,095","₹19,500","₹36,595","₹2,405"],0,"At 22,950 on expiry the 22,650 call is worth 300 and the rest expire worthless. Max profit = (300 − 37) × 65 = ₹17,095."],[7,"You hold Nifty futures bought at 22,250 and sell the 22,550 call for 147 (a covered call). What is the most you can make per lot at expiry?",["₹29,055","₹9,945","₹9,555","₹19,500"],0,"Above the strike, gains stop: (strike − entry + premium) × 65 = (22,550 − 22,250 + 147) × 65 = ₹29,055."],[8,"Total put open interest is 140 lakh contracts and total call open interest is 50 lakh. What is the PCR (OI)?",["0.36","3.80","2.80","3.00"],2,"PCR = put OI ÷ call OI = 140 ÷ 50 = 2.80. More put OI than call OI."],[8,"A stock future moves from 2,720 to 2,708 and its open interest goes from 86 lakh to 94 lakh shares. This is:",["Short covering","Long build-up","Short build-up","Long unwinding"],2,"Price down with OI up = short build-up. Fresh shorts are entering."],[8,"Open interest at a strike was 76 lakh at the start of the day and the chain shows change in OI of −8 lakh. What is the OI now?",["76 lakh","68 lakh","84 lakh","−8 lakh"],1,"OI now = 76 − 8 = 68 lakh. Positions were closed."],[9,"You sell 4 lots of a Nifty option at 277. STT on option sales is 0.15% of the premium. How much STT is charged?",["₹108.03","₹36.01","₹109.03","₹1,080.30"],0,"STT = premium × lot × lots × 0.15% = 277 × 65 × 4 × 0.0015 = ₹108.03."],[9,"You sell 5 lots of Nifty futures at 22,900. STT on futures sales is 0.05%. How much STT is charged?",["₹9,303","₹1,489","₹3,721","₹11,164"],2,"STT = price × 65 × lots × 0.05% = 22,900 × 65 × 5 × 0.0005 = ₹3,721."],[9,"Your long Nifty call ends 200 points in the money and is exercised for one lot. STT on exercise is 0.15% of intrinsic value. How much STT?",["₹6.50","₹0.30","₹195.00","₹19.50"],3,"STT = intrinsic × 65 × lots × 0.15% = 200 × 65 × 1 × 0.0015 = ₹19.50."],[9,"You want to buy one lot of a Nifty option at 60 and sell another one lot naked. Which side needs SPAN plus exposure margin?",["Only the bought option","Neither side","Both sides equally","Only the sold option"],3,"The buyer pays only the premium (₹3,900 here). The seller has open-ended risk, so the clearing corporation blocks SPAN plus exposure margin. Check the exact amount in your broker's margin calculator."],[10,"A stock's MWPL is 525 lakh shares. At end of day its market-wide futures equivalent OI is 409.5 lakh. Does it enter the F&O ban?",["Yes, it enters the ban from the next trading day","Only if the stock price falls","Yes, but only after 30 days","No, it stays out of the ban"],3,"Utilisation = 409.5 ÷ 525 = 78%. The ban starts when OI is above 95% of MWPL at end of day."],[10,"A stock's MWPL is 800 lakh shares and its futures equivalent OI is 360 lakh. What is its MWPL utilisation?",["22.5%","222.2%","55%","45%"],3,"Utilisation = OI ÷ MWPL × 100 = 360 ÷ 800 × 100 = 45%. It is well below the 95% ban trigger."],[10,"A stock is in the F&O ban. Its combined futures equivalent OI across exchanges has fallen to 83% of MWPL. Can fresh positions be taken?",["Only after the next quarter","Only option buyers can trade","Yes, normal trading resumes","No, it stays in the ban"],3,"A stock leaves the ban only when combined OI is at or below 80% of MWPL. 83% is above that level."],[10,"A stock has a free float of 20,000 lakh shares and 65 × its average daily delivery value works out to 8,100 lakh shares. Under the October 2025 formula, what is its MWPL?",["4,000 lakh shares","8,100 lakh shares","3,000 lakh shares","2,000 lakh shares"],2,"MWPL = lower of 15% of free float (3,000) and 65 × ADDV (8,100), but not below 10% of free float (2,000). The free float limb is lower: 3,000 lakh shares."],[10,"During a ban, a trader's futures equivalent position in the stock moves from 8 to −6. What is the violation under NSE Clearing's 2025 method?",["3","6","14","8"],1,"The sign changed, which is not allowed. The new short position of 6 is the violation."],[12,"Your trading capital is ₹15,00,000 and you risk 2% per trade. How much can you lose on one trade?",["₹30,000","₹3,00,000","₹3,000","₹45,000"],0,"Risk per trade = ₹15,00,000 × 2% = ₹30,000."],[12,"Capital ₹20,00,000, risk 1% per trade, and your stop is 40 points away on a Nifty option (lot 65). How many lots can you trade at most?",["14 lots","7 lots","500 lots","8 lots"],1,"Risk per lot = 40 × 65 = ₹2,600. Allowed risk = ₹20,000. ₹20,000 ÷ ₹2,600 = 7.69, so 7 lots."],[12,"Your account falls 60%. What gain do you need to get back to where you started?",["60%","30%","90%","150%"],3,"Gain needed = loss ÷ (100 − loss) = 60 ÷ 40 = 150%. Losses hurt more than equal gains help."],[12,"You buy an option at 105 with a stop at 85 and a target at 135. What is the risk-reward ratio?",["1 : 1.5","1 : 0.7","1 : 2","1 : 2.5"],0,"Risk = 20 points, reward = 30 points. 30 ÷ 20 = 1.5, so 1 : 1.5."],[12,"A strategy wins 50% of trades with an average win of ₹6,000 and loses 50% with an average loss of ₹12,000. What is its expectancy per trade?",["−₹6,000","−₹2,900","₹3,000","−₹3,000"],3,"Expectancy = 50% × ₹6,000 − 50% × ₹12,000 = −₹3,000. Negative: it loses money over many trades even with that win rate."],[3,"Nifty is at 25,200. What is the intrinsic value of the 25,050 call?",["−150","9,750","0","150"],3,"Call intrinsic value = spot − strike = 25,200 − 25,050 = 150 points. It is never below zero."],[3,"Nifty is at 23,450. What is the intrinsic value of the 23,700 put?",["250","0","−250","16,250"],0,"Put intrinsic value = strike − spot = 23,700 − 23,450 = 250 points."],[3,"Nifty is at 22,850. What is the intrinsic value of the 23,150 call?",["150","−300","0","300"],2,"The 23,150 call is out of the money: spot is below the strike. Intrinsic value cannot go below zero, so it is 0. All of its premium is time value."],[3,"Nifty is at 23,050 and the 22,950 call trades at 197. How much of the premium is time value?",["197","297","100","97"],3,"Intrinsic value = 23,050 − 22,950 = 100. Time value = premium − intrinsic = 197 − 100 = 97."],[3,"Nifty is at 24,750 and the 24,950 put trades at 245. How much of the premium is time value?",["200","245","45","445"],2,"Intrinsic value = 24,950 − 24,750 = 200. Time value = 245 − 200 = 45."],[3,"Nifty is at 23,350. The 23,450 put is:",["Out of the money","In the money","Already expired","At the money"],1,"A put is in the money when spot is below the strike. Here spot is below 23,450, so it is in the money."],[4,"An option trades at 368 points. What does a buyer pay for one lot of Nifty (lot size 65)?",["₹23,920","₹27,600","₹9,200","₹368"],0,"Premium in rupees = points × lot size × lots = 368 × 65 × 1 = ₹23,920."],[4,"Ignoring interest and dividends, Nifty is at 23,100 and the 22,900 call trades at 325. By put-call parity, the 22,900 put should trade near:",["525","125","325","200"],1,"Without carry, call − put = spot − strike. So put = 325 − (23,100 − 22,900) = 125. In real markets interest makes the call a little dearer."],[4,"An option has intrinsic value 100 and time value 92. What is its premium?",["100","92","192","8"],2,"Premium = intrinsic value + time value = 100 + 92 = 192."],[4,"You buy 3 lots of a Nifty option at 110 and sell at 70. What is the gross P&L before costs?",["−₹9,000","−₹7,800","−₹120","₹7,800"],1,"P&L = (sell − buy) × 65 × lots = (70 − 110) × 65 × 3 = −₹7,800."],[2,"You buy one lot of Nifty futures at 24,650 and sell at 24,550. What is the gross P&L?",["₹6,500","−₹100","−₹6,500","−₹7,500"],2,"Long futures P&L = (sell − buy) × 65 × lots = −100 × 65 × 1 = −₹6,500."],[2,"You short 5 lots of Nifty futures at 23,250 and buy back at 23,400. What is the gross P&L?",["−₹750","−₹48,750","−₹56,250","₹48,750"],1,"Short futures gain when the price falls. P&L = (sell − buy) × 65 × lots = (23,250 − 23,400) × 65 × 5 = −₹48,750."],[2,"Nifty futures trade at 24,500. What is the contract value of one lot (lot size 65)?",["₹15,92,500","₹24,500","₹6,12,500","₹18,37,500"],0,"Contract value = price × lot size × lots = 24,500 × 65 × 1 = ₹15,92,500."],[2,"Nifty spot is 22,200 and the near-month future is 22,185. What is the basis (future − spot)?",["−15","22,185","15","−975"],0,"Basis = 22,185 − 22,200 = −15 points. A future below spot can happen when dividends or selling pressure outweigh carry."],[2,"You are long one lot of Nifty futures. Yesterday's settlement price was 24,670 and today's is 24,695. What is today's mark-to-market?",["₹25","₹6,175","−₹1,625","₹1,625"],3,"MTM settles the change from one day's settlement price to the next: (24,695 − 24,670) × 65 = ₹1,625."],[5,"You are long one lot of Nifty calls with delta 0.75. What is your position delta in Nifty units (lot 65)?",["0.8","48.8","55.3","65"],1,"Position delta = delta × lots × lot size = 0.75 × 1 × 65 = 48.8. The position moves like that many units of Nifty."],[5,"A call has delta 0.3 and gamma 0.002. After a 150-point rise in Nifty, its delta is about:",["0.60","0.00","0.30","0.65"],0,"New delta ≈ delta + gamma × move = 0.3 + 0.002 × 150 = 0.60."],[6,"Nifty is at 22,900 and implied volatility is 12%. Using spot × IV × √(days ÷ 365), what is the expected one standard deviation move over 91 days?",["About 685 points","About 2,744 points","About 2,748 points","About 1,372 points"],3,"22,900 × 12% × √(91 ÷ 365) ≈ 1,372 points. Roughly two times in three, Nifty should end within this range."],[6,"India VIX is 18. Using √365, roughly what daily move in Nifty does that imply?",["About 0.94%","About 4.93%","About 18.00%","About 1.50%"],0,"Daily move ≈ annual volatility ÷ √365 = 18 ÷ 19.1 ≈ 0.94%. Some traders use √252 trading days instead, which gives a slightly bigger number."],[6,"Implied volatility is 12% a year. About what percentage move is priced in for 91 days?",["About 3%","About 6.5%","About 6%","About 12%"],2,"Scale volatility by the square root of time: 12% × √(91 ÷ 365) ≈ 6%."],[7,"You buy the Nifty 22,100 call for 44. What is the breakeven at expiry?",["22,100","22,144","22,056","22,188"],1,"Long call breakeven = strike + premium = 22,100 + 44 = 22,144."],[7,"You buy the Nifty 24,500 put for 138. What is the breakeven at expiry?",["24,638","24,362","24,500","24,224"],1,"Long put breakeven = strike − premium = 24,500 − 138 = 24,362."],[7,"You sell the Nifty 22,500 put for 132. What is the breakeven at expiry?",["22,500","22,632","22,368","132"],2,"Short put breakeven = strike − premium received = 22,500 − 132 = 22,368. Below that the seller loses."],[7,"You buy one lot of the Nifty 24,750 call for 161. What is your maximum loss?",["₹16,08,750","₹10,465","₹12,075","₹161"],1,"A buyer can lose at most the premium: 161 × 65 × 1 = ₹10,465."],[7,"You bought one lot of the Nifty 23,250 call for 171. Nifty settles at 23,450 on expiry. What is your P&L?",["−₹1,885","₹13,000","₹1,885","₹2,535"],2,"Payoff = max(23,450 − 23,250, 0) − 171 = 29 points × 65 = ₹1,885."],[7,"You bought one lot of the Nifty 23,950 put for 87. Nifty settles at 23,650 on expiry. What is your P&L?",["₹13,845","₹14,495","₹19,500","−₹13,845"],0,"Payoff = max(23,950 − 23,650, 0) − 87 = 213 points × 65 = ₹13,845."],[7,"You sold one lot of the Nifty 22,750 put for 226. Nifty settles at 22,350 on expiry. What is your P&L?",["₹26,000","₹11,310","₹14,690","−₹11,310"],3,"Short put P&L = premium − max(strike − settlement, 0) = 226 − 400 = −174 points × 65 = −₹11,310."],[7,"Bull call spread: buy the 22,900 call at 204 and sell the 23,000 call at 155. What is the breakeven?",["22,951","22,949","22,851","23,049"],1,"Net debit = 204 − 155 = 49. Breakeven = lower strike + debit = 22,900 + 49 = 22,949."],[7,"Bear put spread: buy the 22,300 put at 225 and sell the 22,200 put at 181. What is the breakeven?",["22,256","22,156","22,244","22,344"],0,"Net debit = 225 − 181 = 44. Breakeven = higher strike − debit = 22,300 − 44 = 22,256."],[7,"Bull put spread: sell the 23,750 put and buy the 23,550 put for a net credit of 84. What is the maximum loss for one lot?",["₹18,460","₹13,000","₹5,460","₹7,540"],3,"Max loss = (width − credit) × 65 = (200 − 84) × 65 = ₹7,540, if Nifty ends below 23,550."],[7,"Bear call spread: sell the 23,050 call and buy the 23,350 call for a net credit of 73. What is the breakeven?",["23,123","22,977","23,277","23,423"],0,"Breakeven = short call strike + credit = 23,050 + 73 = 23,123."],[7,"Short straddle at 23,200: the call is 108 and the put is 159. What are the breakevens at expiry?",["22,933 and 23,467","23,092 and 23,359","23,067 and 23,334","23,041 and 23,308"],0,"Total premium = 108 + 159 = 267. Breakevens = strike ± total premium = 22,933 and 23,467. The seller profits inside this range."],[7,"Long strangle: buy the 21,800 put at 93 and the 22,400 call at 99. What are the breakevens at expiry?",["21,608 and 22,592","21,992 and 22,208","21,707 and 22,499","21,800 and 22,400"],0,"Total premium = 192. Lower breakeven = put strike − total = 21,608. Upper = call strike + total = 22,592."],[7,"Iron condor: sell the 23,700 put and 24,300 call, buy the 23,600 put and 24,400 call, for a net credit of 60. What is the maximum loss for one lot?",["₹6,500","₹9,100","₹3,900","₹2,600"],3,"Max loss = (wing width − credit) × 65 = (100 − 60) × 65 = ₹2,600. Only one side can lose at expiry."],[7,"Long call butterfly: buy the 24,250 call, sell two 24,350 calls, buy the 24,450 call, for a net debit of 36. What is the maximum profit per lot?",["₹10,660","₹2,340","₹4,160","₹6,500"],2,"At 24,350 on expiry the 24,250 call is worth 100 and the rest expire worthless. Max profit = (100 − 36) × 65 = ₹4,160."],[7,"You hold Nifty futures bought at 24,250 and sell the 24,550 call for 150 (a covered call). What is the most you can make per lot at expiry?",["₹29,250","₹29,900","₹19,500","₹9,750"],0,"Above the strike, gains stop: (strike − entry + premium) × 65 = (24,550 − 24,250 + 150) × 65 = ₹29,250."],[8,"Total put open interest is 170 lakh contracts and total call open interest is 155 lakh. What is the PCR (OI)?",["1.10","2.10","1.30","0.91"],0,"PCR = put OI ÷ call OI = 170 ÷ 155 = 1.10. More put OI than call OI."],[8,"A stock future moves from 1,240 to 1,228 and its open interest goes from 20 lakh to 22 lakh shares. This is:",["Long unwinding","Short covering","Short build-up","Long build-up"],2,"Price down with OI up = short build-up. Fresh shorts are entering."],[8,"Open interest at a strike was 40 lakh at the start of the day and the chain shows change in OI of +16 lakh. What is the OI now?",["24 lakh","40 lakh","56 lakh","16 lakh"],2,"OI now = 40 + 16 = 56 lakh. New positions were added."],[9,"You sell one lot of a Nifty option at 133. STT on option sales is 0.15% of the premium. How much STT is charged?",["₹12.97","₹4.32","₹13.97","₹129.67"],0,"STT = premium × lot × lots × 0.15% = 133 × 65 × 1 × 0.0015 = ₹12.97."],[9,"You sell 3 lots of Nifty futures at 24,900. STT on futures sales is 0.05%. How much STT is charged?",["₹7,283","₹2,428","₹971","₹6,069"],1,"STT = price × 65 × lots × 0.05% = 24,900 × 65 × 3 × 0.0005 = ₹2,428."],[9,"You want to buy 3 lots of a Nifty option at 56 and sell another 3 lots naked. Which side needs SPAN plus exposure margin?",["Only the bought option","Both sides equally","Only the sold option","Neither side"],2,"The buyer pays only the premium (₹10,920 here). The seller has open-ended risk, so the clearing corporation blocks SPAN plus exposure margin. Check the exact amount in your broker's margin calculator."],[10,"A stock's MWPL is 900 lakh shares. At end of day its market-wide futures equivalent OI is 630 lakh. Does it enter the F&O ban?",["Yes, but only after 30 days","Only if the stock price falls","No, it stays out of the ban","Yes, it enters the ban from the next trading day"],2,"Utilisation = 630 ÷ 900 = 70%. The ban starts when OI is above 95% of MWPL at end of day."],[10,"A stock's MWPL is 600 lakh shares and its futures equivalent OI is 270 lakh. What is its MWPL utilisation?",["55%","45%","222.2%","22.5%"],1,"Utilisation = OI ÷ MWPL × 100 = 270 ÷ 600 × 100 = 45%. It is well below the 95% ban trigger."],[10,"A stock is in the F&O ban. Its combined futures equivalent OI across exchanges has fallen to 79% of MWPL. Can fresh positions be taken?",["Yes, normal trading resumes","Only after the next quarter","No, it stays in the ban","Only option buyers can trade"],0,"A stock leaves the ban only when combined OI is at or below 80% of MWPL. 79% is at or below that level."],[10,"A stock has a free float of 20,000 lakh shares and 65 × its average daily delivery value works out to 6,900 lakh shares. Under the October 2025 formula, what is its MWPL?",["4,000 lakh shares","6,900 lakh shares","2,000 lakh shares","3,000 lakh shares"],3,"MWPL = lower of 15% of free float (3,000) and 65 × ADDV (6,900), but not below 10% of free float (2,000). The free float limb is lower: 3,000 lakh shares."],[10,"During a ban, a trader's futures equivalent position in the stock moves from 8 to −4. What is the violation under NSE Clearing's 2025 method?",["12","2","8","4"],3,"The sign changed, which is not allowed. The new short position of 4 is the violation."],[12,"Your trading capital is ₹20,00,000 and you risk 2% per trade. How much can you lose on one trade?",["₹60,000","₹4,000","₹40,000","₹4,00,000"],2,"Risk per trade = ₹20,00,000 × 2% = ₹40,000."],[12,"Capital ₹20,00,000, risk 2% per trade, and your stop is 30 points away on a Nifty option (lot 65). How many lots can you trade at most?",["1,333 lots","21 lots","40 lots","20 lots"],3,"Risk per lot = 30 × 65 = ₹1,950. Allowed risk = ₹40,000. ₹40,000 ÷ ₹1,950 = 20.51, so 20 lots."],[12,"Your account falls 20%. What gain do you need to get back to where you started?",["25%","10%","20%","30%"],0,"Gain needed = loss ÷ (100 − loss) = 20 ÷ 80 = 25%. Losses hurt more than equal gains help."],[12,"You buy an option at 185 with a stop at 135 and a target at 235. What is the risk-reward ratio?",["1 : 1","1 : 2","1 : 1.5","1 : 0.5"],0,"Risk = 50 points, reward = 50 points. 50 ÷ 50 = 1, so 1 : 1."],[12,"A strategy wins 30% of trades with an average win of ₹4,000 and loses 70% with an average loss of ₹2,500. What is its expectancy per trade?",["−₹550","₹550","₹1,500","₹1,200"],0,"Expectancy = 30% × ₹4,000 − 70% × ₹2,500 = −₹550. Negative: it loses money over many trades even with that win rate."],[3,"Nifty is at 25,450. What is the intrinsic value of the 24,950 call?",["32,500","−500","0","500"],3,"Call intrinsic value = spot − strike = 25,450 − 24,950 = 500 points. It is never below zero."],[3,"Nifty is at 23,400. What is the intrinsic value of the 23,600 put?",["0","13,000","−200","200"],3,"Put intrinsic value = strike − spot = 23,600 − 23,400 = 200 points."],[3,"Nifty is at 23,150. What is the intrinsic value of the 23,250 call?",["0","50","−100","100"],0,"The 23,250 call is out of the money: spot is below the strike. Intrinsic value cannot go below zero, so it is 0. All of its premium is time value."],[3,"Nifty is at 24,950 and the 24,850 call trades at 179. How much of the premium is time value?",["79","100","279","179"],0,"Intrinsic value = 24,950 − 24,850 = 100. Time value = premium − intrinsic = 179 − 100 = 79."],[3,"Nifty is at 24,350 and the 24,550 put trades at 304. How much of the premium is time value?",["304","104","504","200"],1,"Intrinsic value = 24,550 − 24,350 = 200. Time value = 304 − 200 = 104."],[3,"Nifty is at 22,900. The 22,800 put is:",["Out of the money","In the money","Already expired","At the money"],0,"A put is in the money when spot is below the strike. Here spot is above 22,800, so it is out of the money."],[4,"An option trades at 219 points. What does a buyer pay for one lot of Nifty (lot size 65)?",["₹16,425","₹14,235","₹219","₹5,475"],1,"Premium in rupees = points × lot size × lots = 219 × 65 × 1 = ₹14,235."],[4,"Ignoring interest and dividends, Nifty is at 23,550 and the 23,450 call trades at 231. By put-call parity, the 23,450 put should trade near:",["231","100","331","131"],3,"Without carry, call − put = spot − strike. So put = 231 − (23,550 − 23,450) = 131. In real markets interest makes the call a little dearer."],[4,"An option has intrinsic value 100 and time value 70. What is its premium?",["30","170","100","70"],1,"Premium = intrinsic value + time value = 100 + 70 = 170."],[4,"You buy 4 lots of a Nifty option at 199 and sell at 239. What is the gross P&L before costs?",["₹12,000","−₹10,400","₹10,400","₹160"],2,"P&L = (sell − buy) × 65 × lots = (239 − 199) × 65 × 4 = ₹10,400."],[2,"You buy 3 lots of Nifty futures at 25,350 and sell at 25,390. What is the gross P&L?",["₹7,800","₹9,000","−₹7,800","₹120"],0,"Long futures P&L = (sell − buy) × 65 × lots = 40 × 65 × 3 = ₹7,800."],[2,"You short 5 lots of Nifty futures at 23,200 and buy back at 23,140. What is the gross P&L?",["₹300","−₹19,500","₹19,500","₹22,500"],2,"Short futures gain when the price falls. P&L = (sell − buy) × 65 × lots = (23,200 − 23,140) × 65 × 5 = ₹19,500."],[2,"Nifty futures trade at 24,150. What is the contract value of 2 lots (lot size 65)?",["₹31,39,500","₹48,300","₹12,07,500","₹36,22,500"],0,"Contract value = price × lot size × lots = 24,150 × 65 × 2 = ₹31,39,500."],[2,"Nifty spot is 23,100 and the near-month future is 23,180. What is the basis (future − spot)?",["5,200","−80","23,180","80"],3,"Basis = 23,180 − 23,100 = 80 points. A future above spot is normal: it reflects the cost of carry."],[2,"You are long one lot of Nifty futures. Yesterday's settlement price was 22,290 and today's is 22,220. What is today's mark-to-market?",["₹4,550","−₹4,550","−₹70","−₹8,450"],1,"MTM settles the change from one day's settlement price to the next: (22,220 − 22,290) × 65 = −₹4,550."],[5,"A call has delta 0.4. If Nifty rises 150 points, roughly how much does the call gain?",["3,900","60","90","150"],1,"Change ≈ delta × move = 0.4 × 150 = 60 points, ignoring gamma and time."],[5,"A put has delta −0.35. If Nifty falls 50 points, roughly how much does the put gain?",["−17.5","50","17.5","1,137.5"],2,"Change ≈ delta × move = −0.35 × (−50) = +17.5 points. Puts gain when the market falls."],[5,"A long Nifty option has theta of −5 points a day. All else equal, about how much does one lot lose in 2 days?",["₹650","₹325","₹10","₹750"],0,"Loss ≈ theta × days × lot = 5 × 2 × 65 = ₹650. Theta grows near expiry, so this is only an estimate."],[5,"An option has vega 20. If implied volatility falls by 1.5 points, its price changes by about:",["−1.5","30","−30","20"],2,"Change ≈ vega × change in IV = 20 × −1.5 = −30 points."],[6,"Nifty is at 24,750 and implied volatility is 15%. Using spot × IV × √(days ÷ 365), what is the expected one standard deviation move over 30 days?",["About 2,129 points","About 3,713 points","About 305 points","About 1,064 points"],3,"24,750 × 15% × √(30 ÷ 365) ≈ 1,064 points. Roughly two times in three, Nifty should end within this range."],[6,"Implied volatility is 12% a year. About what percentage move is priced in for 182 days?",["About 9%","About 12%","About 6%","About 8.5%"],3,"Scale volatility by the square root of time: 12% × √(182 ÷ 365) ≈ 8.5%."],[7,"You buy the Nifty 22,800 call for 67. What is the breakeven at expiry?",["22,733","22,800","22,934","22,867"],3,"Long call breakeven = strike + premium = 22,800 + 67 = 22,867."],[7,"You buy the Nifty 25,150 put for 236. What is the breakeven at expiry?",["24,678","25,150","25,386","24,914"],3,"Long put breakeven = strike − premium = 25,150 − 236 = 24,914."],[7,"You sell the Nifty 22,700 put for 155. What is the breakeven at expiry?",["22,855","155","22,700","22,545"],3,"Short put breakeven = strike − premium received = 22,700 − 155 = 22,545. Below that the seller loses."],[7,"You buy one lot of the Nifty 25,300 call for 145. What is your maximum loss?",["₹145","₹16,44,500","₹9,425","₹10,875"],2,"A buyer can lose at most the premium: 145 × 65 × 1 = ₹9,425."],[7,"You bought one lot of the Nifty 23,200 call for 82. Nifty settles at 22,900 on expiry. What is your P&L?",["−₹19,500","₹0","−₹5,330","₹5,330"],2,"Payoff = max(22,900 − 23,200, 0) − 82 = −82 points × 65 = −₹5,330."],[7,"You bought one lot of the Nifty 22,950 put for 199. Nifty settles at 22,650 on expiry. What is your P&L?",["₹7,215","₹19,500","−₹6,565","₹6,565"],3,"Payoff = max(22,950 − 22,650, 0) − 199 = 101 points × 65 = ₹6,565."],[7,"You sold one lot of the Nifty 22,750 put for 235. Nifty settles at 22,500 on expiry. What is your P&L?",["₹15,275","₹975","−₹975","₹16,250"],2,"Short put P&L = premium − max(strike − settlement, 0) = 235 − 250 = −15 points × 65 = −₹975."],[7,"Bull call spread: buy the 23,900 call at 201 and sell the 24,200 call at 157. What is the maximum profit for one lot?",["₹16,640","₹2,860","₹22,360","₹19,500"],0,"Max profit = (strike width − net debit) × 65 = (300 − 44) × 65 = ₹16,640, reached above 24,200."],[7,"Bear put spread: buy the 24,500 put at 252 and sell the 24,400 put at 202. What is the breakeven?",["24,450","24,500","24,350","24,550"],0,"Net debit = 252 − 202 = 50. Breakeven = higher strike − debit = 24,500 − 50 = 24,450."],[7,"Bull put spread: sell the 23,550 put and buy the 23,450 put for a net credit of 43. What is the breakeven?",["23,407","23,493","23,593","23,507"],3,"Breakeven = short put strike − credit = 23,550 − 43 = 23,507."],[7,"Bear call spread: sell the 22,900 call and buy the 23,200 call for a net credit of 64. What is the breakeven?",["23,136","22,836","22,964","23,264"],2,"Breakeven = short call strike + credit = 22,900 + 64 = 22,964."],[7,"Short straddle at 23,550: the call is 234 and the put is 105. What are the breakevens at expiry?",["23,316 and 23,655","23,211 and 23,889","23,381 and 23,720","23,445 and 23,784"],1,"Total premium = 234 + 105 = 339. Breakevens = strike ± total premium = 23,211 and 23,889. The seller profits inside this range."],[7,"Long strangle: buy the 23,950 put at 94 and the 24,750 call at 95. What are the breakevens at expiry?",["23,950 and 24,750","23,761 and 24,939","23,856 and 24,845","24,139 and 24,561"],1,"Total premium = 189. Lower breakeven = put strike − total = 23,761. Upper = call strike + total = 24,939."],[7,"Iron condor: sell the 25,200 put and 25,800 call, buy the 25,000 put and 26,000 call, for a net credit of 61. What is the maximum loss for one lot?",["₹3,965","₹9,035","₹22,035","₹13,000"],1,"Max loss = (wing width − credit) × 65 = (200 − 61) × 65 = ₹9,035. Only one side can lose at expiry."],[7,"Long call butterfly: buy the 21,900 call, sell two 22,000 calls, buy the 22,100 call, for a net debit of 38. What is the maximum profit per lot?",["₹2,470","₹4,030","₹6,500","₹10,530"],1,"At 22,000 on expiry the 21,900 call is worth 100 and the rest expire worthless. Max profit = (100 − 38) × 65 = ₹4,030."],[7,"You hold Nifty futures bought at 23,450 and sell the 23,750 call for 59 (a covered call). What is the most you can make per lot at expiry?",["₹3,835","₹19,500","₹23,335","₹15,665"],2,"Above the strike, gains stop: (strike − entry + premium) × 65 = (23,750 − 23,450 + 59) × 65 = ₹23,335."],[8,"Total put open interest is 165 lakh contracts and total call open interest is 45 lakh. What is the PCR (OI)?",["3.87","0.27","4.67","3.67"],3,"PCR = put OI ÷ call OI = 165 ÷ 45 = 3.67. More put OI than call OI."],[8,"A stock future moves from 1,880 to 1,895 and its open interest goes from 50 lakh to 52 lakh shares. This is:",["Short covering","Long unwinding","Long build-up","Short build-up"],2,"Price up with OI up = long build-up. Fresh longs are entering."],[8,"Open interest at a strike was 32 lakh at the start of the day and the chain shows change in OI of −8 lakh. What is the OI now?",["24 lakh","40 lakh","32 lakh","−8 lakh"],0,"OI now = 32 − 8 = 24 lakh. Positions were closed."],[9,"You sell 2 lots of a Nifty option at 165. STT on option sales is 0.15% of the premium. How much STT is charged?",["₹32.17","₹33.17","₹10.73","₹321.75"],0,"STT = premium × lot × lots × 0.15% = 165 × 65 × 2 × 0.0015 = ₹32.17."],[9,"You sell 3 lots of Nifty futures at 22,250. STT on futures sales is 0.05%. How much STT is charged?",["₹868","₹5,423","₹2,169","₹6,508"],2,"STT = price × 65 × lots × 0.05% = 22,250 × 65 × 3 × 0.0005 = ₹2,169."],[9,"Your long Nifty call ends 300 points in the money and is exercised for 3 lots. STT on exercise is 0.15% of intrinsic value. How much STT?",["₹87.75","₹1.35","₹29.25","₹877.50"],0,"STT = intrinsic × 65 × lots × 0.15% = 300 × 65 × 3 × 0.0015 = ₹87.75."],[9,"You want to buy 5 lots of a Nifty option at 122 and sell another 5 lots naked. Which side needs SPAN plus exposure margin?",["Only the sold option","Only the bought option","Both sides equally","Neither side"],0,"The buyer pays only the premium (₹39,650 here). The seller has open-ended risk, so the clearing corporation blocks SPAN plus exposure margin. Check the exact amount in your broker's margin calculator."],[10,"A stock's MWPL is 825 lakh shares. At end of day its market-wide futures equivalent OI is 767.3 lakh. Does it enter the F&O ban?",["Yes, but only after 30 days","No, it stays out of the ban","Yes, it enters the ban from the next trading day","Only if the stock price falls"],1,"Utilisation = 767.3 ÷ 825 = 93%. The ban starts when OI is above 95% of MWPL at end of day."],[10,"A stock's MWPL is 900 lakh shares and its futures equivalent OI is 810 lakh. What is its MWPL utilisation?",["90%","111.1%","10%","45%"],0,"Utilisation = OI ÷ MWPL × 100 = 810 ÷ 900 × 100 = 90%. It is getting close to the 95% ban trigger."],[10,"A stock has a free float of 16,000 lakh shares and 65 × its average daily delivery value works out to 5,400 lakh shares. Under the October 2025 formula, what is its MWPL?",["3,200 lakh shares","2,400 lakh shares","5,400 lakh shares","1,600 lakh shares"],1,"MWPL = lower of 15% of free float (2,400) and 65 × ADDV (5,400), but not below 10% of free float (1,600). The free float limb is lower: 2,400 lakh shares."],[10,"During a ban, a trader's futures equivalent position in the stock moves from 10 to −4. What is the violation under NSE Clearing's 2025 method?",["2","14","10","4"],3,"The sign changed, which is not allowed. The new short position of 4 is the violation."],[10,"The value of a trader's ban-period violation in a stock on one day is ₹25,00,000. Under NSE Clearing's 2025 rules (1%, minimum ₹5,000, maximum ₹1,00,000), what is the penalty?",["₹1,00,000","₹2,50,000","₹25,000","₹5,000"],2,"1% of ₹25,00,000 is ₹25,000. The penalty is capped between ₹5,000 and ₹1,00,000, so it is ₹25,000 for that day."],[12,"Your trading capital is ₹5,00,000 and you risk 1.5% per trade. How much can you lose on one trade?",["₹75,000","₹750","₹7,500","₹12,500"],2,"Risk per trade = ₹5,00,000 × 1.5% = ₹7,500."],[12,"Capital ₹5,00,000, risk 2% per trade, and your stop is 40 points away on a Nifty option (lot 65). How many lots can you trade at most?",["6 lots","250 lots","3 lots","4 lots"],2,"Risk per lot = 40 × 65 = ₹2,600. Allowed risk = ₹10,000. ₹10,000 ÷ ₹2,600 = 3.85, so 3 lots."],[12,"You buy an option at 134 with a stop at 74 and a target at 254. What is the risk-reward ratio?",["1 : 3","1 : 0.5","1 : 2.5","1 : 2"],3,"Risk = 60 points, reward = 120 points. 120 ÷ 60 = 2, so 1 : 2."],[12,"A strategy wins 45% of trades with an average win of ₹5,000 and loses 55% with an average loss of ₹6,000. What is its expectancy per trade?",["₹1,050","−₹1,050","₹2,250","−₹1,000"],1,"Expectancy = 45% × ₹5,000 − 55% × ₹6,000 = −₹1,050. Negative: it loses money over many trades even with that win rate."],[12,"Your account peaked at ₹15,00,000 and later fell to ₹13,80,000. What is the drawdown?",["8%","16%","0.8%","92%"],0,"Drawdown = (peak − low) ÷ peak = ₹1,20,000 ÷ ₹15,00,000 = 8%."],[3,"Nifty is at 23,600. What is the intrinsic value of the 23,100 call?",["500","−500","32,500","0"],0,"Call intrinsic value = spot − strike = 23,600 − 23,100 = 500 points. It is never below zero."],[3,"Nifty is at 25,150. What is the intrinsic value of the 25,650 put?",["−500","500","0","32,500"],1,"Put intrinsic value = strike − spot = 25,650 − 25,150 = 500 points."],[3,"Nifty is at 25,500. What is the intrinsic value of the 26,000 call?",["−500","500","250","0"],3,"The 26,000 call is out of the money: spot is below the strike. Intrinsic value cannot go below zero, so it is 0. All of its premium is time value."],[3,"Nifty is at 22,950 and the 22,750 call trades at 340. How much of the premium is time value?",["200","140","340","540"],1,"Intrinsic value = 22,950 − 22,750 = 200. Time value = premium − intrinsic = 340 − 200 = 140."],[3,"Nifty is at 24,300 and the 24,600 put trades at 386. How much of the premium is time value?",["686","386","300","86"],3,"Intrinsic value = 24,600 − 24,300 = 300. Time value = 386 − 300 = 86."],[3,"Nifty is at 23,300. The 23,000 call is:",["At the money","Out of the money","Already expired","In the money"],3,"A call is in the money when spot is above the strike. Here spot is above 23,000, so it is in the money."],[4,"An option trades at 171 points. What does a buyer pay for 2 lots of Nifty (lot size 65)?",["₹342","₹22,230","₹25,650","₹8,550"],1,"Premium in rupees = points × lot size × lots = 171 × 65 × 2 = ₹22,230."],[4,"Ignoring interest and dividends, Nifty is at 22,550 and the 22,350 call trades at 366. By put-call parity, the 22,350 put should trade near:",["166","566","200","366"],0,"Without carry, call − put = spot − strike. So put = 366 − (22,550 − 22,350) = 166. In real markets interest makes the call a little dearer."],[4,"You buy 3 lots of a Nifty option at 175 and sell at 135. What is the gross P&L before costs?",["₹7,800","−₹9,000","−₹7,800","−₹120"],2,"P&L = (sell − buy) × 65 × lots = (135 − 175) × 65 × 3 = −₹7,800."],[2,"You buy one lot of Nifty futures at 24,400 and sell at 24,320. What is the gross P&L?",["₹5,200","−₹6,000","−₹5,200","−₹80"],2,"Long futures P&L = (sell − buy) × 65 × lots = −80 × 65 × 1 = −₹5,200."],[2,"You short 3 lots of Nifty futures at 24,400 and buy back at 24,450. What is the gross P&L?",["−₹11,250","−₹9,750","₹9,750","−₹150"],1,"Short futures gain when the price falls. P&L = (sell − buy) × 65 × lots = (24,400 − 24,450) × 65 × 3 = −₹9,750."],[2,"Nifty futures trade at 22,800. What is the contract value of one lot (lot size 65)?",["₹14,82,000","₹17,10,000","₹5,70,000","₹22,800"],0,"Contract value = price × lot size × lots = 22,800 × 65 × 1 = ₹14,82,000."],[2,"Nifty spot is 25,100 and the near-month future is 25,210. What is the basis (future − spot)?",["25,210","−110","7,150","110"],3,"Basis = 25,210 − 25,100 = 110 points. A future above spot is normal: it reflects the cost of carry."],[2,"You are long one lot of Nifty futures. Yesterday's settlement price was 24,980 and today's is 25,060. What is today's mark-to-market?",["₹5,200","₹80","−₹5,200","₹7,150"],0,"MTM settles the change from one day's settlement price to the next: (25,060 − 24,980) × 65 = ₹5,200."],[5,"A call has delta 0.2. If Nifty rises 60 points, roughly how much does the call gain?",["60","12","48","780"],1,"Change ≈ delta × move = 0.2 × 60 = 12 points, ignoring gamma and time."],[5,"A put has delta −0.3. If Nifty falls 50 points, roughly how much does the put gain?",["15","975","−15","50"],0,"Change ≈ delta × move = −0.3 × (−50) = +15 points. Puts gain when the market falls."],[5,"A long Nifty option has theta of −12 points a day. All else equal, about how much does one lot lose in 2 days?",["₹780","₹1,800","₹24","₹1,560"],3,"Loss ≈ theta × days × lot = 12 × 2 × 65 = ₹1,560. Theta grows near expiry, so this is only an estimate."],[5,"An option has vega 12. If implied volatility rises by 2 points, its price changes by about:",["2","24","−24","12"],1,"Change ≈ vega × change in IV = 12 × 2 = 24 points."],[5,"A call has delta 0.3 and gamma 0.002. After a 50-point rise in Nifty, its delta is about:",["0.10","0.40","0.20","0.30"],1,"New delta ≈ delta + gamma × move = 0.3 + 0.002 × 50 = 0.40."],[6,"Nifty is at 23,350 and implied volatility is 15%. Using spot × IV × √(days ÷ 365), what is the expected one standard deviation move over 60 days?",["About 2,840 points","About 3,503 points","About 1,420 points","About 576 points"],2,"23,350 × 15% × √(60 ÷ 365) ≈ 1,420 points. Roughly two times in three, Nifty should end within this range."],[6,"Implied volatility is 28% a year. About what percentage move is priced in for 30 days?",["About 8%","About 28%","About 14%","About 2.3%"],0,"Scale volatility by the square root of time: 28% × √(30 ÷ 365) ≈ 8%."],[7,"You buy the Nifty 25,000 call for 60. What is the breakeven at expiry?",["25,060","24,940","25,120","25,000"],0,"Long call breakeven = strike + premium = 25,000 + 60 = 25,060."],[7,"You buy the Nifty 22,950 put for 88. What is the breakeven at expiry?",["23,038","22,950","22,774","22,862"],3,"Long put breakeven = strike − premium = 22,950 − 88 = 22,862."],[7,"You sell the Nifty 25,050 put for 75. What is the breakeven at expiry?",["25,050","25,125","24,975","75"],2,"Short put breakeven = strike − premium received = 25,050 − 75 = 24,975. Below that the seller loses."],[7,"You buy 4 lots of the Nifty 22,750 call for 190. What is your maximum loss?",["₹57,000","₹760","₹59,15,000","₹49,400"],3,"A buyer can lose at most the premium: 190 × 65 × 4 = ₹49,400."],[7,"You bought one lot of the Nifty 24,000 call for 137. Nifty settles at 24,050 on expiry. What is your P&L?",["−₹5,005","₹5,655","₹3,250","−₹5,655"],3,"Payoff = max(24,050 − 24,000, 0) − 137 = −87 points × 65 = −₹5,655."],[7,"You bought one lot of the Nifty 24,800 put for 228. Nifty settles at 24,350 on expiry. What is your P&L?",["₹15,080","−₹14,430","₹29,250","₹14,430"],3,"Payoff = max(24,800 − 24,350, 0) − 228 = 222 points × 65 = ₹14,430."],[7,"You sold one lot of the Nifty 23,550 put for 102. Nifty settles at 23,150 on expiry. What is your P&L?",["₹26,000","₹6,630","−₹19,370","₹19,370"],2,"Short put P&L = premium − max(strike − settlement, 0) = 102 − 400 = −298 points × 65 = −₹19,370."],[7,"Bull call spread: buy the 22,400 call at 220 and sell the 22,700 call at 182. What is the maximum loss for one lot?",["₹17,030","₹19,500","₹14,300","₹2,470"],3,"Max loss = net debit × 65 = (220 − 182) × 65 = ₹2,470, if Nifty ends below 22,400."],[7,"Bear put spread: buy the 24,050 put at 234 and sell the 23,750 put at 191. What is the breakeven?",["24,093","24,007","23,793","23,707"],1,"Net debit = 234 − 191 = 43. Breakeven = higher strike − debit = 24,050 − 43 = 24,007."],[7,"Bull put spread: sell the 25,500 put and buy the 25,200 put for a net credit of 93. What is the breakeven?",["25,593","25,407","25,107","25,293"],1,"Breakeven = short put strike − credit = 25,500 − 93 = 25,407."],[7,"Bear call spread: sell the 22,050 call and buy the 22,150 call for a net credit of 48. What is the breakeven?",["22,102","22,198","22,098","22,002"],2,"Breakeven = short call strike + credit = 22,050 + 48 = 22,098."],[7,"Short straddle at 25,400: the call is 112 and the put is 182. What are the breakevens at expiry?",["25,218 and 25,512","25,106 and 25,694","25,288 and 25,582","25,253 and 25,547"],1,"Total premium = 112 + 182 = 294. Breakevens = strike ± total premium = 25,106 and 25,694. The seller profits inside this range."],[7,"Long strangle: buy the 22,750 put at 82 and the 23,350 call at 89. What are the breakevens at expiry?",["22,579 and 23,521","22,921 and 23,179","22,668 and 23,439","22,750 and 23,350"],0,"Total premium = 171. Lower breakeven = put strike − total = 22,579. Upper = call strike + total = 23,521."],[7,"Iron condor: sell the 22,550 put and 23,150 call, buy the 22,350 put and 23,350 call, for a net credit of 57. What are the breakevens?",["22,493 and 23,207","22,550 and 23,150","22,350 and 23,350","22,607 and 23,093"],0,"Breakevens = short put − credit and short call + credit: 22,493 and 23,207."],[7,"Long call butterfly: buy the 22,600 call, sell two 22,750 calls, buy the 22,900 call, for a net debit of 26. What is the maximum profit per lot?",["₹1,690","₹17,810","₹9,750","₹8,060"],3,"At 22,750 on expiry the 22,600 call is worth 150 and the rest expire worthless. Max profit = (150 − 26) × 65 = ₹8,060."],[7,"You hold Nifty futures bought at 22,850 and sell the 23,050 call for 61 (a covered call). What is the most you can make per lot at expiry?",["₹16,965","₹13,000","₹9,035","₹3,965"],0,"Above the strike, gains stop: (strike − entry + premium) × 65 = (23,050 − 22,850 + 61) × 65 = ₹16,965."],[8,"A stock future moves from 880 to 860 and its open interest goes from 38 lakh to 36 lakh shares. This is:",["Long build-up","Long unwinding","Short build-up","Short covering"],1,"Price down with OI down = long unwinding. Longs are exiting."],[8,"Open interest at a strike was 108 lakh at the start of the day and the chain shows change in OI of +12 lakh. What is the OI now?",["120 lakh","12 lakh","96 lakh","108 lakh"],0,"OI now = 108 + 12 = 120 lakh. New positions were added."],[9,"You sell 2 lots of a Nifty option at 101. STT on option sales is 0.15% of the premium. How much STT is charged?",["₹196.95","₹20.70","₹19.70","₹6.57"],2,"STT = premium × lot × lots × 0.15% = 101 × 65 × 2 × 0.0015 = ₹19.70."],[9,"You sell 2 lots of Nifty futures at 23,100. STT on futures sales is 0.05%. How much STT is charged?",["₹1,502","₹4,505","₹3,754","₹601"],0,"STT = price × 65 × lots × 0.05% = 23,100 × 65 × 2 × 0.0005 = ₹1,502."],[9,"Your long Nifty call ends 50 points in the money and is exercised for one lot. STT on exercise is 0.15% of intrinsic value. How much STT?",["₹1.63","₹4.88","₹0.08","₹48.75"],1,"STT = intrinsic × 65 × lots × 0.15% = 50 × 65 × 1 × 0.0015 = ₹4.88."],[9,"You want to buy one lot of a Nifty option at 75 and sell another one lot naked. Which side needs SPAN plus exposure margin?",["Only the sold option","Both sides equally","Only the bought option","Neither side"],0,"The buyer pays only the premium (₹4,875 here). The seller has open-ended risk, so the clearing corporation blocks SPAN plus exposure margin. Check the exact amount in your broker's margin calculator."],[10,"A stock's MWPL is 750 lakh shares. At end of day its market-wide futures equivalent OI is 705 lakh. Does it enter the F&O ban?",["Only if the stock price falls","No, it stays out of the ban","Yes, it enters the ban from the next trading day","Yes, but only after 30 days"],1,"Utilisation = 705 ÷ 750 = 94%. The ban starts when OI is above 95% of MWPL at end of day."],[10,"A stock's MWPL is 700 lakh shares and its futures equivalent OI is 602 lakh. What is its MWPL utilisation?",["43%","86%","14%","116.3%"],1,"Utilisation = OI ÷ MWPL × 100 = 602 ÷ 700 × 100 = 86%. It is getting close to the 95% ban trigger."],[10,"A stock has a free float of 23,500 lakh shares and 65 × its average daily delivery value works out to 1,400 lakh shares. Under the October 2025 formula, what is its MWPL?",["2,350 lakh shares","1,400 lakh shares","3,525 lakh shares","4,700 lakh shares"],0,"MWPL = lower of 15% of free float (3,525) and 65 × ADDV (1,400), but not below 10% of free float (2,350). The lower figure is under the floor, so the floor applies: 2,350 lakh shares."],[10,"During a ban, a trader's futures equivalent position in the stock moves from −10 to −7. What is the violation under NSE Clearing's 2025 method?",["3","10","7","No violation"],3,"The position shrank in the same direction, which is allowed during a ban."],[10,"The value of a trader's ban-period violation in a stock on one day is ₹60,00,000. Under NSE Clearing's 2025 rules (1%, minimum ₹5,000, maximum ₹1,00,000), what is the penalty?",["₹60,000","₹5,000","₹1,00,000","₹6,00,000"],0,"1% of ₹60,00,000 is ₹60,000. The penalty is capped between ₹5,000 and ₹1,00,000, so it is ₹60,000 for that day."],[12,"Your trading capital is ₹15,00,000 and you risk 1% per trade. How much can you lose on one trade?",["₹30,000","₹15,000","₹1,50,000","₹1,500"],1,"Risk per trade = ₹15,00,000 × 1% = ₹15,000."],[12,"Capital ₹5,00,000, risk 1% per trade, and your stop is 60 points away on a Nifty option (lot 65). How many lots can you trade at most?",["0 lots","2 lots","83 lots","1 lot"],3,"Risk per lot = 60 × 65 = ₹3,900. Allowed risk = ₹5,000. ₹5,000 ÷ ₹3,900 = 1.28, so 1 lot."],[12,"You buy an option at 182 with a stop at 152 and a target at 227. What is the risk-reward ratio?",["1 : 0.7","1 : 2","1 : 1.5","1 : 2.5"],2,"Risk = 30 points, reward = 45 points. 45 ÷ 30 = 1.5, so 1 : 1.5."],[12,"A strategy wins 45% of trades with an average win of ₹6,000 and loses 55% with an average loss of ₹6,000. What is its expectancy per trade?",["₹2,700","₹0","−₹600","₹600"],2,"Expectancy = 45% × ₹6,000 − 55% × ₹6,000 = −₹600. Negative: it loses money over many trades even with that win rate."],[12,"Your account peaked at ₹8,00,000 and later fell to ₹6,80,000. What is the drawdown?",["1.5%","15%","85%","30%"],1,"Drawdown = (peak − low) ÷ peak = ₹1,20,000 ÷ ₹8,00,000 = 15%."],[3,"Nifty is at 23,150. What is the intrinsic value of the 22,750 call?",["400","−400","0","26,000"],0,"Call intrinsic value = spot − strike = 23,150 − 22,750 = 400 points. It is never below zero."],[3,"Nifty is at 25,450. What is the intrinsic value of the 25,750 put?",["300","19,500","−300","0"],0,"Put intrinsic value = strike − spot = 25,750 − 25,450 = 300 points."],[3,"Nifty is at 23,400. What is the intrinsic value of the 23,800 call?",["400","−400","0","200"],2,"The 23,800 call is out of the money: spot is below the strike. Intrinsic value cannot go below zero, so it is 0. All of its premium is time value."],[3,"Nifty is at 24,700 and the 24,400 call trades at 342. How much of the premium is time value?",["300","42","642","342"],1,"Intrinsic value = 24,700 − 24,400 = 300. Time value = premium − intrinsic = 342 − 300 = 42."]]}