NISM Series XIII Common Derivatives Certification Exam Notes

Page 43 Of 303

Go to:

  • Bear Put Spread: Buying a higher-strike put and selling a lower-strike put for bearish outlook.
  • Bullish Vertical Spread: Using calls or puts to profit from moderate price increases.
  • Bearish Vertical Spread: Using calls or puts to profit from moderate price declines.
  • Straddle: Buying a call and put with the same strike for large price swings.
  • Strangle: Buying a call and put with different strikes for large price movements.

NISM Common Derivatives

MODELEXAM MODELEXAM®