NISM Series IV: Currency Derivatives Certification Exam Notes

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  • Limitations vs. FRAs: Less flexibility due to standardization.
  • IRF Pricing: Based on the cost-of-carry model, adjusted for interest rates.
  • Underlying Assets: Typically government securities or notional bonds.
  • Lot Size: Fixed quantity of the underlying per contract.
  • Tick Size: Minimum price movement increment.

NISM Interest Rate Derivatives

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