NISM Series XIII Common Derivatives Certification Exam Notes

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  • Cross Rate Speculation:Speculators can combine currency pairs using cross rate relationships.
  • Premium Arbitrage:Arbitragers exploit price differences between forwards and futures.
  • Triangular Arbitrage:Exploit misaligned cross rates between three currencies.
  • Calendar Spread:Trade same contract with different expiry to profit from spread movement.
  • Calendar Spread Drivers:Interest rate differentials, liquidity and monetary policy affect spread movement.

NISM Common Derivatives

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