NISM PMS Distributors ( NISM 21A ) Certification Exam Notes

Page 42 Of 122

Go to:

  • Options: Give buyers the right, not obligation, to buy (call) or sell (put).
  • Swaps: Agreements to exchange cash flows, common in interest rate markets.
  • Derivative Markets: Include exchange-traded and OTC markets.
  • Exchange-Traded Derivatives: Offer standardization and lower counterparty risk.
  • OTC Derivatives: Non-standard, negotiated bilaterally, higher risk.

NISM PMS Distributors ( NISM 21A )

Copyright 2025 - MODELEXAM MODELEXAM®