The NSE introduced trading in Index Options (also based on Nifty 50) on June 4, _____.
Show answer & explanation
Correct answer: B
Explanation
The National Stock Exchange (NSE) commenced trading in Nifty-50 based index options on June 4, 2001. This marked a significant step towards the development of the derivatives market within the Indian capital market. Index options provide investors with the opportunity to hedge against market risk. Through this mechanism, investors can execute trades based on the anticipated direction of the market. The NSE first introduced index futures, followed subsequently by options trading.