Consider the following statements about lsquo Options Trading rsquo in India and identify the correc...........

Economic Affairs Financial Markets

Consider the following statements about ‘Options Trading’ in India and identify the correct one

1. An option is a financial derivative wherein the selling party offers the buyer the right, but not the obligation, to buy or sell a security at a predetermined price and date.

2. It is regulated by SEBI in India

3. In India certain Farm Products can also be traded in the Options market

Select the correct answer using codes given below

1 and 2 only

1 and 3 only

2 and 3 only

All of the above

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Explanation:

It is only recently that SEBI has allowed options trading in agricultural commodities.
Options trading allows the buyer of this financial derivative to buy the item/security being traded in a future date at a pre-determined price. But the buyer is not obliged to do so. If will buy only if he feels to earn a profit out of the deal.