NISM Series IV: Currency Derivatives Certification Exam Notes

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  • Derivatives Definition: Financial contracts deriving value from underlying assets like interest rates.
  • Economic Role: Facilitate risk management, price discovery, and market efficiency.
  • Interest Rate Derivatives: Contracts based on interest rates or interest rate instruments.
  • Derivative Products: Include futures, options, swaps, and forward rate agreements (FRAs).
  • Growth Drivers: Increased volatility, regulatory reforms, and demand for hedging tools.

NISM Interest Rate Derivatives

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