NISM Series XIII Common Derivatives Certification Exam Notes

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  • Time Value: Value due to potential future price movements.
  • Volatility Impact: Higher volatility increases option premiums.
  • Time Decay: Options lose value as expiry approaches.
  • Risk-Free Rate: Affects option pricing via cost-of-carry.
  • Liquidity Advantage: Exchange-traded options ensure ease of trading.

NISM Common Derivatives

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