NISM Series XIII Common Derivatives Certification Exam Notes

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  • Ideal Price: Average of the best bid and ask prices in the market.
  • Index Criteria: Stocks selected based on liquidity, market cap, and sector representation.
  • Tracking Error: Difference between an ETF’s return and the index it tracks.
  • Index Futures: Contracts to buy/sell an index at a future date at a set price.
  • Index Options: Contracts giving the right to buy/sell an index at a specified price.

NISM Common Derivatives

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