Find the permissible value(s) of $k$ given in options below for which both roots of the equation $4x^2 -2x+k = 0$ are completely in $(-1,1)$ .
The options given are : $-1,0,2$ and $-3$ .
By completing the square, we have
$$(2x -\frac{1}{2})^2 = -k + \frac{1}{4}$$
Also, $$x \in (-1,1) \implies (2x -\frac{1}{2})^2 \in (0, \frac{25}{4})$$
Hence, $$-k + \frac{1}{4} \in (0, \frac{25}{4})\implies k\in(-6,-\frac{1}{4})$$
Hence, from the options, I got that $k$ can be equal to $-1,0,-3$ . However, the answer key says that answers are $-1$ and $0$ only. Where did I go wrong ?
If you compute the two roots of you polynomial (by using the quadratic formula) you'll get: $$x=\frac{2\pm\sqrt{4-16k}}{8}=\frac{1\pm\sqrt{1-4k}}{4}$$ Moreover, since you want to have real roots you need the condition $1-4k\geq0\Rightarrow k\leq \frac{1}{4}$.
Now, observe that $\frac{1-\sqrt{1-4k}}{4}\leq \frac{1+\sqrt{1-4k}}{4}$ so you have to solve two inequalities: $$-1<\frac{1-\sqrt{1-4k}}{4}$$$$\frac{1+\sqrt{1-4k}}{4}<1$$ The first inequality gives you $k>-6$ and the second one gives you $k>-2$. Hence, the solution is $-2<k\leq\frac{1}{4}$. In particular $k=-1,0$ works. As @user0 pointed out in a comment, this inequalities are easily solved, you just have to be careful about flipping the inequality when multiplying by a $-$ sign.
The problem with your argument is that you have shown that $x\in(-1,1)\Rightarrow k\in(-6,\frac{1}{4}]$, which is completely right since $-2<k\leq \frac{1}{4}$. However, the converse is not proved, so you don't know which of the values of $(-6,\frac{1}{4}]$ works.