NISM Series XIII Common Derivatives Certification Exam Notes

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  • Cross Rates: Derived when direct rates aren’t available; e.g., EURINR = EURUSD × USDINR.
  • Exchange Rate Arithmetic: Use multiplication/division of underlying rates to compute cross rates; keep track of bid/offer sides.
  • Price Discovery: Driven by global events, demand-supply, economic indicators, and interbank market activity.
  • Economic Factors Impact: Include inflation, GDP growth, trade deficit, crude oil prices, global risk appetite, etc.
  • GDP Impact: Higher-than-expected GDP growth usually strengthens currency.

NISM Common Derivatives

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