n NISM Certifications
XIII NISM Series XIII
Medium

An Indian importer needs to pay USD 50,000 in 3 months. Banks offer different forward prices. For transparent pricing, what contract should the company use?

Practice question from NISM Series XIII for SIF - Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    OTC, USD short

  2. B

    OTC, USD long

  3. Exchange traded futures - USD long

    Correct answer

  4. D

    Exchange traded futures - USD short

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

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