n NISM Certifications
NSM General NISM
Medium

Limitation of Interest Rate Derivatives for Hedgers is mainly due to __________.

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

Options

  1. A

    Standardised Contract

  2. B

    Non availability on all kinds of underlying instruments

  3. Both of the above

    Correct answer

  4. D

    None of the above

Why this is the answer

Hedgers face limitations due to standardized contracts and lack of availability on all underlying instruments.

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