Teaching UGC NET Mock Test Series 2025 (Paper 1 & 2) Business Finance Types of Financing Capital Market
The following two statements relate to financial derivatives. Choose the correct code for the 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 exercises his option or buys or sells the asset from the market, the option is said to be at-the-money.
1
Statement I is correct, but II is incorrect.
2
Statement II is correct, but I is incorrect.
3
Both the statements I and II are correct.
4
Both the statements I and II are incorrect.