NISM Series XIII Common Derivatives Certification Exam Notes

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  • Accounting for Derivatives: Governed by specific standards for futures and options.
  • Initial Margin: Recorded as an asset when paid for futures contracts.
  • Mark-to-Market (MTM): Daily gains/losses recognized in profit/loss account.
  • Daily Premium Settlement: Options premium recorded as income/expense daily.
  • Final Settlement: Recognized at expiry based on settlement price.

NISM Common Derivatives

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