n NISM Certifications
NSM General NISM
Medium

In the OTC market, USDINR one-month is quoted at 65.25/65.50, and the corresponding futures are at 66.00/66.10. What is the arbitrage trade and profit per USD if carried till maturity?

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

Options

  1. A

    Buy USDINR OTC and sell in futures, ₹0.40

  2. Buy USDINR OTC and sell in futures, ₹0.50

    Correct answer

  3. C

    Buy USDINR OTC and sell in futures, ₹0.55

  4. D

    Buy USDINR OTC and sell in futures, ₹0.75

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

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