n NISM Certifications
NSM General NISM
Medium

_______ are derivatives with underlying as a theoretical bond and not a physical bond.

Practice question from NISM Series IV - Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Single bond Futures

  2. Notional Bond Futures

    Correct answer

  3. C

    Money market futures

  4. D

    None of the above

Why this is the answer

Notional bond futures are based on a theoretical bond, not an actual physical bond.

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