NISM Series VIII Chapter 3: Introduction to Forwards and Futures 📚 Top 20 MCQs💯 Equity Derivatives скачать в хорошем качестве

NISM Series VIII Chapter 3: Introduction to Forwards and Futures 📚 Top 20 MCQs💯 Equity Derivatives

🎯 NISM Series VIII: Equity Derivatives | Chapter 3 - Introduction to Forwards & Futures | Top 20 Questions & Answers with Detailed Explanation 💡 India's Most Trusted Platform For NISM Exam Practice 🌐 Visit: https://nismseries.com/ 📞 Contact: +91 9907566149 +91 9485132399 📧 Email: help.nismseries@gmail.com 📚 Unlimited Mock Tests Available | Practice More, Score More! Master Chapter 3 with the most important MCQs! Forward vs Futures Contract, Cost of Carry Model, Fair Value of Futures, Basis, Convergence, Mark to Market (MTM), Initial & Maintenance Margin, Margin Call, Open Interest, Contango vs Backwardation & Long vs Short Payoff - all explained for exam success. 🎯 Topics Covered in This Q&A Session: ✅ Forward Contract - Definition, Features & Limitations ✅ Futures Contract - Standardized, Exchange-Traded ✅ Key Differences: Forwards vs Futures (EXAM TABLE!) ✅ Long Position vs Short Position in Futures ✅ Payoff Profile - Futures = Linear/Symmetric Payoff ✅ Cost of Carry Model = Spot Price + Carrying Cost ✅ Fair Value of Futures = S × e^(r×t) or S × (1+r)^t ✅ Basis = Spot Price - Futures Price (Convergence at Expiry!) ✅ Basis Risk - Why Hedging is Not Perfect ✅ Mark to Market (MTM) = Daily Settlement of Profits & Losses ✅ Initial Margin, Maintenance Margin & Margin Call ✅ Open Interest = Total Outstanding Contracts (Not Volume!) ✅ Sample Questions Solved with Tricky Options 📌 Key Concepts (Exam Important): Forward vs Futures (CRITICAL!): • Forward = OTC, Customized, Counterparty risk, No daily settlement • Futures = Exchange-traded, Standardized, Zero counterparty risk, Daily MTM • Both = Obligation to buy/sell on future date at agreed price • Futures = More liquid | Forwards = More flexible (custom terms) Mark to Market & Margin (EXAM TRICK!): • Initial Margin = Deposit required to open a futures position • Maintenance Margin = Minimum balance that must be maintained • Margin Call = Triggered when balance falls BELOW maintenance margin • MTM = Daily profit/loss credited or debited to trading account • Example: Buy 1000 futures at ₹10, price rises to ₹11 → MTM Profit = ₹1000 Open Interest vs Volume: • Open Interest = Total number of OUTSTANDING (unsettled) contracts • Volume = Total contracts TRADED during the day (new + closed) • Rising OI + Rising Price = Bullish trend confirmation • Falling OI + Falling Price = Bearish trend confirmation • Long OI = Short OI (always equal - for every buyer there's a seller!) 🔔 Subscribe for all NISM Series VIII chapters! 💬 Doubts? Comment below! 👍 Found this helpful? LIKE & SHARE! #NISMSeriesVIII #NISMSeries8 #EquityDerivatives #Chapter3 #ForwardsAndFutures #CostOfCarry #BasisConvergence #MarkToMarket #InitialMargin #MarginCall #Contango #Backwardation #OpenInterest #NISMMCQ #Top20Questions