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

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  • Out-of-the-Money (OTM): Call where spot price < strike price; put where spot price > strike price.
  • Intrinsic Value: Difference between spot price and strike price for ITM options.
  • Time Value: Option premium minus intrinsic value, reflecting time to expiry.
  • Option Buyer: Pays premium for the right, faces limited loss (premium).
  • Option Seller: Receives premium, faces potentially unlimited loss.

NISM Equity Derivatives

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