NISM Series XIII Common Derivatives Certification Exam Notes

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  • Short Straddle:Sell call and put at same strike to profit from low volatility.
  • Long Strangle:Buy OTM call and put with different strikes to profit from sharp moves.
  • Short Strangle:Sell OTM call and put — profit if prices stay within range.
  • Butterfly Spread:Combines bull and bear spreads — neutral strategy with limited profit/loss.
  • Hedging with Puts:Protects against currency depreciation for exporters.

NISM Common Derivatives

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