NISM Series XIII Common Derivatives Certification Exam Notes

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  • Option Expiry: European options in India settle only on the expiration date.
  • Hedging: Using futures/options to reduce price risk of an underlying asset.
  • Speculation: Taking directional bets using futures/options for profit.
  • Arbitrage: Exploiting price misalignments for risk-free profits.
  • Long Futures: Buying futures to profit from expected price increases.

NISM Common Derivatives

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