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

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  • Reverse Cash and Carry Arbitrage: Selling in cash market and buying futures when futures are underpriced.
  • Fair Futures Price: Spot price plus cost of carry minus inflows (e.g., dividends).
  • Cost of Carry: Interest cost of holding the underlying asset until futures expiry.
  • Convenience Yield: Benefit of holding the physical asset, affecting futures pricing.
  • Basis: Difference between spot price and futures price.

NISM Equity Derivatives

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