[amp_mcq option1=”individual warrant options” option2=”index based futures” option3=”index based options” option4=”individual stock options” correct=”option1″]
The correct answer is A. individual warrant options.
The F&O segment of NSE provides trading facilities for the following derivative instruments:
- Index futures: A contract to buy or sell an index at a predetermined price on a specified date in the future.
- Index options: A contract to buy or sell the right to buy or sell an index at a predetermined price on or before a specified date in the future.
- Individual stock futures: A contract to buy or sell a specific stock at a predetermined price on a specified date in the future.
- Individual stock options: A contract to buy or sell the right to buy or sell a specific stock at a predetermined price on or before a specified date in the future.
Warrant options are not traded on the F&O segment of NSE. Warrants are a type of derivative instrument that gives the holder the right, but not the obligation, to buy or sell a specified asset at a predetermined price on or before a specified date. Warrants are typically issued by companies to raise capital.