Question : The National Commodity and Derivatives Exchange (NCDEX) on Tuesday(21 July,2020) said it will launch the ‘Options in Goods’ contracts on rapeseed, wheat and maize from —
(a) July 27
(b) August 14
(c) April 2021
(d) September 16
Answer : (a)
Related facts —
Context
- The National Commodity and Derivatives Exchange (NCDEX) on Tuesday(21 July,2020) said it will launch the ‘Options in Goods’ contracts on rapeseed, wheat and maize from July 27.
- SEBI in January 2020 had allowed exchanges to launch ‘Options in Goods’ in their commodity derivatives segment.
NCDEX
- The National Commodity & Derivatives Exchange (NCDEX) is a commodities exchange dealing primarily in agricultural commodities in India.
- NCDEX has become the first exchange in the country to launch Options in Goods contracts in agri derivatives space after the permission given by the regulator Securities and Exchange Board of India (SEBI).
- The contracts of the three commodities, expiring in October and November 2020, would be available for trading from July 27 onwards.
Option Contract
- An Option Contract confers the right, but not the obligation, to buy (Call) or sell (Put) a specific underlying instrument or asset at a specific price – the strike or exercise price – up until or on a specific future date – the expiry date.
- Call option – It gives the holder the right but not the obligation to buy an asset by a certain date for a certain price.
- Put option – A It gives the holder the right but not the obligation to sell an asset by a certain date for a certain price.
By — Pankaj Pandey.