NISM 10A Investment Adviser Level 1 Notes

Page 88 Of 181

Go to:

  • Currency Risk Management: Derivatives mitigate losses from exchange rate fluctuations.
  • Derivative Strategies: Include straddles, spreads, and covered calls for varied objectives.
  • Volatility Impact: Higher volatility increases derivative prices, especially options.
  • Contract Settlement: Can be physical (delivery) or cash-settled based on price differences.
  • Margin Calls: Require additional funds if market moves against the position.

NISM 10A NISM Investment Adviser Level 1

MODELEXAM MODELEXAM®