NISM Series IV: Currency Derivatives Certification Exam Notes

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  • Notional Bond IRFs: Based on 6-year, 10-year, or 13-year bonds.
  • Cash Settlement Risk: May lead to imperfect hedging.
  • Margin Calls: Required to cover potential losses.
  • Contract Tenure: Weekly or monthly expiries available.
  • Price Discount: IRF prices often trade below future prices due to borrowing costs.

NISM Interest Rate Derivatives

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