NISM Series IV: Currency Derivatives Certification Exam Notes

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  • Put Option Payoff: Max(0, Strike Price - Spot Price) - Premium.
  • Contract Specifications: Define strike prices, expiry, and underlying.
  • Exchange-Traded Options: Standardized, transparent, and liquid.
  • OTC vs. Exchange-Traded: OTC options are customizable but less transparent.
  • Hedging Use: Options protect against adverse rate movements.

NISM Interest Rate Derivatives

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