NISM Series XIII Common Derivatives Certification Exam Notes

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  • Forward Rate Agreements (FRAs): OTC contracts locking in future interest rates.
  • Interest Rate Swaps: Agreements to exchange fixed for floating interest payments.
  • Market Liquidity: Exchange-traded derivatives enhance market liquidity.
  • Price Discovery: Derivatives help establish fair market prices.
  • Risk Transfer: Derivatives allow shifting of interest rate risk to willing parties.

NISM Common Derivatives

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