NISM Series XIII Common Derivatives Certification Exam Notes
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Interest Rate Parity:Ensures no arbitrage opportunity by linking spot and futures prices with domestic and foreign interest rates.
Futures Contract Features:Exchange decides contract terms except price; includes expiry date, lot size, margins, and centralized trading.
Introduction in India:NSE launched USD-INR futures in 2008; later EUR-INR, GBP-INR, JPY-INR; from 2018, cross-currency futures (EUR-USD, GBP-USD, USD-JPY).
Underlying Asset:The exchange rate between currency pairs, e.g., USD-INR.
Spot Price:Current market price of the currency pair.
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