NISM Series XIII Common Derivatives Certification Exam Notes

Page 223 Of 303

Go to:

  • Hedging Effectiveness: Depends on alignment with underlying exposure.
  • Arbitrage Profit: Requires simultaneous trades in mispriced markets.
  • Clearing Mechanism: Ensures trade settlement and reduces default risk.
  • Market Access: Open to various entities under regulatory guidelines.
  • Derivative Evolution: Driven by technological advancements and market needs.

NISM Common Derivatives

MODELEXAM MODELEXAM®