Options
- A
Model Risk
-
Basis Risk
Correct answer
- C
Market Liquidity Risk
- D
Credit Risk
Why this is the answer
Basis Risk arises when there is a difference in the price movement between the derivative and the security being hedged.
Test yourself for real
Take a full NISM Series V-A mock test.
Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.