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

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  • Option Settlement: European options settle at expiry based on closing price.
  • Premium Payment: Buyer pays premium upfront; seller receives it as income.
  • Exercise Price: Same as strike price, where option can be exercised.
  • Option Risks: Buyers face limited loss; sellers face potentially unlimited loss.
  • Margin Requirements: Option sellers face daily MTM margin obligations.

NISM Equity Derivatives

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