NISM Series 8 (NISM VIII): Equity Derivatives Certification Exam Notes

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  • Derivatives: Financial contracts deriving value from an underlying asset like stocks or indices.
  • Types of Derivatives: Include forwards, futures, options, and swaps, each serving different risk management purposes.
  • Forwards: Customized contracts between two parties to buy/sell an asset at a future date at an agreed price.
  • Futures: Standardized forward contracts traded on exchanges with a clearing corporation as counterparty.
  • Options: Contracts giving the buyer the right, not obligation, to buy (call) or sell (put) an asset.

NISM Equity Derivatives

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