Test Yourself
Test For Options Knowledge
1. Person (Institution) who promises to promoters to buy the remaining shares of a company that are not bought by general public is called underwriter.
Yes
No
2. Active secondary market promotes the growth of primary markets
Yes
No
3. All stocks have different market capitalization
Yes
No
4. An investor should be proficient in fundamental filtering
Yes
No
5. Asian Paints is an undervalued stock with PEG less than 1
Yes
No
6. At Indiavix 30 market is overbought and at indiavix 10 it is oversold
Yes
No
7. ATR tells about the strength of the trend
Yes
No
8. Balanced portfolio should not include real estate
Yes
No
9. Beta measures systematic risk of an asset
Yes
No
10. Black–Scholes equation recieved noble prize
Yes
No
11. Bollinger band trading is a trend following method
Yes
No
12. Brian Weiss is a famous options trader
Yes
No
13. Bullish Harami has gap between two candles
Yes
No
14. Butterfly is an options term
Yes
No
15. Caterpillar is an options term
Yes
No
16. CCI is used only for commodity trading
Yes
No
17. Chamanlal Shethia is coming up with an IPO
Yes
No
18. Coal India gives dividend more than FD rate
Yes
No
19. Cryptocurreny is regulated by RBI
Yes
No
20. Derivatives increases liquidity for investors
Yes
No
21. Divergence can be used to identify a potential trend reversal
Yes
No
22. Dividend payout ratio is the most important thing is fundamental analysis
Yes
No
23. Double Top is a buy zone
Yes
No
24. Dow theory is a fundamental analysis method
Yes
No
25. Dow theory is the oldest theory of technical analysis
Yes
No
26. EURO-USD is now traded legally on NSE
Yes
No
27. Every futures contract has an expiry day
Yes
No
28. Exhaustion gap comes at the start of the move
Yes
No
29. Exponential moving average moves faster than simple moving average
Yes
No
30. GDP growth rate influences the stock market
Yes
No
31. Hedging is a combination of stocks and futures of same stock
Yes
No
32. Hedging is a method of protecting your portfolio
Yes
No
33. Ichimoku cloud trading was introduced by a Journalist
Yes
No
34. If basis is negative the derivative contract is bullish
Yes
No
35. If entry is at 100 stop loss is 95 and target is 108 the RR is 2
Yes
No
36. If premium is 204 and money value is 14, time value is zero
Yes
No
37. If the stock is likely to go up you buy a call
Yes
No
38. In any trade the minimum RR should be 2
Yes
No
39. In option chain volume is more important than open interest
Yes
No
40. In stock market long term capital gain is zero
Yes
No
41. In stock market short term capital gain is 15 percent
Yes
No
42. In USD-INR pair USD is the Quote currency
Yes
No
43. International Forex can be traded on NSE
Yes
No
44. IPO is part of secondary market
Yes
No
45. Is stock market a profession
Yes
No
46. It is compulsary for every company to give divident
Yes
No
47. MACD crossover is used only in swing trading
Yes
No
48. Market is perfect and free without any trade restrictions is a part of Efficient Market Hypothesis
Yes
No
49. MFI is used for overbought and overold conditions
Yes
No
50. Money market deals with short term instruments with maturity period up to one year
Yes
No
51. Money market has maturity of more than one year
Yes
No
52. Mutual funds are open ended and closed ended
Yes
No
53. Mutual funds are regulated by AMFI
Yes
No
54. Nifty is composed of 50 stocks
Yes
No
55. Niftybees has given more than 20 percent returns per year from start
Yes
No
56. Niftybees is a bluechip stock
Yes
No
57. NSDL and CDSL are stock exchanges in India
Yes
No
58. Option chain tells the level and direction of the stock
Yes
No
59. Option writer has unlimited risk and limited profit
Yes
No
60. Options are guaranteed way of making money
Yes
No
61. Options buyers control the market and not the option writers
Yes
No
62. Options can be used for long term investment
Yes
No
63. Options have the potential to double your money in a day
Yes
No
64. Options were invented as hedging products
Yes
No
65. Oscillators and indicators can be used for technical filtering
Yes
No
66. Pathfinders Express is a gap trading method
Yes
No
67. PEG fair and EPS fair value is the same
Yes
No
68. PEG ratio can be used to find undervalued stocks
Yes
No
69. Point and Figure is a chart type
Yes
No
70. Position size is the number of stocks in the options contract
Yes
No
71. premium = money value - time value
Yes
No
72. Private placements and Preferential allotment is part of secondary market
Yes
No
73. Profit and Loss is going to happen - the real skill is managing both
Yes
No
74. Promoters have ownership of futures and option of their stock
Yes
No
75. Public issue and Rights are part of Primary Market
Yes
No
76. Risk management decides your success in stock market
Yes
No
77. RSI can have value more than 100
Yes
No
78. SEBI is the stock market regulator in India
Yes
No
79. Sensex consists of 40 stocks
Yes
No
80. Siddhant Express is based on HLC moving average
Yes
No
81. Spread calculation is crucial in intraday trading
Yes
No
82. Spread is the difference between ask and bid
Yes
No
83. Stock market consists of Systematic risk and Unsystematic risk
Yes
No
84. Stocks can be held only in demat form
Yes
No
85. Stop loss is used in all trades
Yes
No
86. Tata Motors is a fundamentally strong company
Yes
No
87. Technical analysis is used to trade options
Yes
No
88. The essential elements of CAPM are Risk free rate, Market Risk Premium, Beta of the security
Yes
No
89. The fifty stocks of Nifty always remain the same
Yes
No
90. The premium of the option changes continously
Yes
No
91. Time decay needs to be understood to trade options
Yes
No
92. Time value of the option increases with time
Yes
No
93. Trend trading can be done with supertend
Yes
No
94. Vedant Express uses moving averages crossover
Yes
No
95. Volatility of stock compared to index is measured by beta
Yes
No
96. Warren buffet indicator is applicable in India
Yes
No
97. Warren Buffet traded options also
Yes
No
98. Yogeshwar Express is a breakout method
Yes
No
99. You can get guaranteed profits in stock market
Yes
No
100. You can trade options in India by opening a trading and demat account
Yes
No
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