n NISM Certifications
XIII NISM Series XIII
Medium

An exporter buys a house for INR 500,000 payable after 3 months. He expects to receive USD 10,000 in 3 months, and hedges with USDINR futures at 50. He receives 51 from the bank and settles the contract at 49. Would he have bought/sold futures, and is the effective cost of the house lower or higher?

Practice question from NISM Series XIII for SIF - Mock Test 9 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Bought, Lower

  2. Sold, Lower

    Correct answer

  3. C

    Sold, Higher

  4. D

    Bought, Higher

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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NISM Series XIII for SIF - Mock Test 9