NISM Series XIII Common Derivatives Certification Exam Notes

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  • Index Futures: Used for hedging systematic risk of portfolios.
  • Options: Contracts granting the right, not obligation, to buy (call) or sell (put) an asset.
  • Call Option: Gives the buyer the right to buy the underlying at a strike price.
  • Put Option: Gives the buyer the right to sell the underlying at a strike price.
  • Option Premium: Price paid by the buyer to the option seller.

NISM Common Derivatives

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