n NISM Certifications
XIII NISM Series XIII
Medium

Initial margin to be paid in derivatives is set up taking into account the volatility of the underlying market. Generally, _____.

Practice question from NISM Series XIII for SIF - Mock Test 11 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Lower the volatility, higher the initial margin

  2. B

    Higher the volatility, lower the initial margin

  3. Higher the volatility, higher the initial margin

    Correct answer

  4. D

    None of the above

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 11