NISM 21B Portfolio Managers Exam Notes

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  • Swaps: Exchange cash flows, e.g., interest rate swaps.
  • Derivative Markets: Exchange-traded (standardized), OTC (customized).
  • Purpose of Derivatives: Hedging, speculation, arbitrage.
  • Hedging: Offsets potential losses with derivatives.
  • Speculation: Profits from price movements.

NISM 21B Portfolio Managers

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