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

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  • Hedging Risk: Options limit downside while allowing upside potential.
  • Speculative Strategies: Options used for leveraged bets with defined risk for buyers.
  • Arbitrage Strategies: Exploit mispricing between futures, options, or cash markets.
  • Payoff Profiles: Vary by strategy, balancing risk and reward.
  • Time Value Decay: Impacts option strategies, especially near expiry.

NISM Equity Derivatives

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