n NISM Certifications
VII NISM Series VII
Medium

Derivatives are traded on which of the following underlyings in the Indian stock markets?1.Currency, 2. Foreign Stock Indices, 3. Repo’s, 4. Reverse Repo’s

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

Options

  1. A

    1 and 3

  2. 1 and 2

    Correct answer

  3. C

    2 and 3

  4. D

    3 and 4

Why this is the answer

SEBI allows derivatives trading on currency pairs (USDINR, EURINR) and foreign stock indices. Repo and reverse repo are not derivative underlyings.

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NISM Series VII Mock Test 2