NISM Series IV: Currency Derivatives Certification Exam Notes

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  • Arbitrage Opportunities: Exploit mispricing in related markets.
  • Exchange Benefits: Include reduced transaction costs and high liquidity.
  • Clearing Guarantee: Ensures settlement even if a party defaults.
  • Contract Specifications: Critical for understanding trade obligations.
  • Risk Management Tools: IRFs are key for financial institutions’ stability.

NISM Interest Rate Derivatives

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