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The following two statements relate to financial derivatives. Choose the correct answer for statements being correct or incorrect.
Statement I When an option is allowed to be exercised only on the maturity date, it is called an American option.
Statement II If the option holder does not lose or gain whether he exercise his option or buys or sells the asset form the market, the option is said to be at-the-money.

The following two statements relate to financial derivatives. Choose the correct answer for statements being correct or incorrect.
Statement I When an option is allowed to be exercised only on the maturity date, it is called an American option.
Statement II If the option holder does not lose or gain whether he exercise his option or buys or sells the asset form the market, the option is said to be at-the-money. Correct Answer Statement II is correct, but Statement I is incorrect

Related Questions

Match List I with List II List I List II Hedging Concepts Description A. European option I. Option contract exercised on any date up to maturity B. Option premium II. When the immediate exercise of an option yields positive value to its holder C. In-money option III. Option contract exercised only on the maturity date D. American option IV. It is paid by the buyer of the options upfront to the option seller Choose the correct answer from the options given below:
The given statements are related to financial derivatives. Choose the correct answer for the statements being correct or incorrect.
Statement I A speculator will gain, if he sells foreign currency under a forward contract, when the spot price is higher than the forward price.
Statement II In currency futures, intra currency spread exists when a speculator buys/sells the same currency for two delivery dates.
The different variant of Date() constructor to create date object is/are ___________ i. new Date(date) ii. new Date(milliseconds) iii. new Date(date string) iv. new Date(year, month, date)
The question given below consists of a statement, followed by three arguments I, II and III. You have to decide which of the arguments is/are ‘strong’ arguments is/are ‘weak’ arguments and accordingly choose your answer from the alternatives given below each question. Statement: The domestic equity market has become supervolatile  and converted the psychology of every market participant into fear. Greed and fear continue to alternate in the market, like the two sides of a coin. To a seasoned player, there seems to be nothing new as such instances of panic-selling often occur time and again. Why? Arguments: I. Since demonetisation, herd mentality had jacked up financials, banks and NBFC stocks to great heights on the pretext of financial inclusion and formalisation of the economy. This caused the financials gain disproportionate share in Nifty50 at 35 per cent of the free float market capitalisation, which was unheard of in the past.  II. The domestic market seems to be deeply oversold and can rebound on any good news. The Nifty50 has taken long-term support at the three-year trend line, which makes a case for the correction to near its end. III. Investors, therefore, should not panic and sell off shares. Instead they should do the reverse and gather the courage to pump in more money into the market by picking quality stocks or investing in ETFs for more stable returns. 
Choose the correct code for the following statements being correct or incorrect. Statement I: An option which gives its holder the privilege of selling to other party a fixed amount of some stock at a stated price on or before a predetermined date is known as call option. Statement II : In an option, the holder has the privilege of purchasing from other party a fixed amount of some stock at a stated price on or before a predetermined date is known as put option. 
Which of the following statements are correct?
1. A put option is said to bein the money or favourable for the option holder when the strike price is higher than the spot price.
2. A put option is said to be out of money when the strike price is lower than the market price.
3. Fir an option writer the maximum gain is the amount of premium received by the put option holder.
Which of the statements is/are true?
1. American option allows the option buyer to exercise his rights at any point before the expiry date.
2. Under European options, the option buyer can exercise his right only on the date specified in the option and not before that.
In each question below is given a statement numbered I, II and III. An assumption is something supposed or taken for granted. You have to consider the following assumption and decide which of the assumption is implicit in the statement. Statement: About a year ago, Prime Minister Narendra Modi had told the world that the signature of a chartered accountant on financial statements was, perhaps, more powerful than even one of his own. ‘Just like doctors don’t want people to be ill to get more business, chartered accountants, too, need to safeguard the society’s economic health. Your signature is more powerful than the PM’s, and the government also believes the accounts signed by you’, Modi had said.  Assumptions: I. The CA community, however, may not have woken up to the value of the initials they put on financial statements. Last year has been more of a challenge for the community’s reputation, with banking frauds, asset quality divergences and mid-term auditor resignations dominating the headlines.  II. There cannot be a situation where there will be 100% agreement on everything. You may have rules but still judgmental factors in credit, asset recognition come in. The approach is that as soon as the asset is stretched, banks have to recognise the problem.  III. But even basic logic just went out of the window and banks together kept dishing out loans to such companies even when their annual turnover was half of the total debt.
Read the passage carefully and select the best answer to each question out of the given four alternatives. By practicing mindfulness and other principles, we become more aware of and present to our fears and others fears, bearing witness as a way of healing andempowering. We see the spiritual path as intertwined with the path of social action, with contemplation and action parts of the same whole, each nourishing andguiding the other. Acknowledging that our well-being depends on others makes caring for others well-being a moral responsibility.
Through a “mindful citizen” exercise, we create a story articulating who we are as individuals who are also part of communities. This exercise helps us move beyond cynicism, complacency, and despair, instead infusing us with a sense of purpose. We embrace our gifts, resolving to do our part to promote a sense of common humanity as a means toward social justice.
With this exercise, I believe we can help students bridge their divides and replace anger and distrust with compassionate connections – just as I witnessed betweenShirley and Tiffany.
Shirley returned to class after a brief hiatus, keeping a cool distance from Tiffany. But over the weeks spent together they gradually came to know each other. They practiced seeing and listening, sharing stories so different that they felt bewildered as to how they could overcome the gap. But they found that acknowledging their differences led them to discover a place of deep connection in commonalities, such as being raised by grandmothers, and even wounds, including childhood trauma,that they never imagined existed.
In assessments of these classes, students say that these small groups become “healing communities,” where we overcome victimization and claim agency. Healingoccurs as we transcend an “us vs. them” mentality, crossing borders and forging connections. These communities show a way of reducing intergroup prejudice andfostering inclusion based in psychology research and pedagogical practice. What does the “mindful citizen” exercise help us in?
Which of the following is not an agreement in restraint of trade?
1. A sells the goodwill of his business with an agreement not to carry on a similar business within specified local limits, so long as the buyer carries on a similar business.
2. A sells the goodwill of his business with an agreement not to carry on a similar business within India, so long as the buyer carries on a similar business.
3. A sells the goodwill of his business with an agreement not to practice the same trade for 25 years.
4. A sells the goodwill of his business with an agreement not to engage in any business competing or liable to compete in any way with the business for the time being carried on by the buyer.