NISM Series 8 (NISM VIII): Equity Derivatives Certification Exam Notes

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  • Strike Price: Pre-agreed price for buying/selling the underlying in an option.
  • European Options: Exercisable only at expiry, used in Indian equity markets.
  • American Options: Exercisable anytime before expiry, not common in India.
  • In-the-Money (ITM): Call option where spot price > strike price; put where spot price < strike price.
  • At-the-Money (ATM): Option where spot price equals strike price, leading to zero cash flow.

NISM Equity Derivatives

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