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

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  • Break-Even Point (BEP): Price at which option position results in zero profit/loss.
  • Payoff Chart: Graphs profit/loss for options at different underlying prices.
  • Long Call: Buying a call option, expecting price increase, with unlimited gain potential.
  • Short Call: Selling a call option, expecting price stability or decline, with unlimited loss risk.
  • Long Put: Buying a put option, expecting price decline, with limited loss (premium).

NISM Equity Derivatives

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