NISM Series XIII Common Derivatives Certification Exam Notes

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  • Speculative Use: Options allow betting on rate directions.
  • Arbitrage Use: Exploit pricing inefficiencies across markets.
  • European Options: Common in Indian exchange-traded markets.
  • Premium Components: Intrinsic value and time value.
  • Intrinsic Value: Immediate exercise value of the option.

NISM Common Derivatives

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