NISM Series IV: Currency Derivatives Certification Exam Notes

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  • Condor Spread: Similar to butterfly, with wider strike range.
  • Spread Trading: Uses price differences between contracts.
  • Calendar Spread: Trades contracts with different expiry dates.
  • Hedging Limitation: Basis risk from imperfect hedge alignment.
  • Basis Risk: Arises from mismatches in amount, maturity, or underlying.

NISM Interest Rate Derivatives

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