NISM 10A Investment Adviser Level 1 Notes

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  • OTC Derivatives: Flexible but carry higher counterparty risk due to lack of regulation.
  • Margin Requirements: Initial and maintenance margins ensure contract fulfillment.
  • Leverage Impact: Amplifies returns but increases risk of significant losses.
  • Derivative Pricing: Based on underlying asset price, time to expiry, and volatility.
  • Black-Scholes Model: Used for options pricing, factoring in time and volatility.

NISM 10A NISM Investment Adviser Level 1

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