n NISM Certifications
VII NISM Series VII
Medium

The risk management framework for derivatives includes ______.

Practice question from NISM Series VII Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Position Limits

  2. B

    Margins

  3. C

    Liquid Net Worth & Liquid Assets

  4. All of the above

    Correct answer

Why this is the answer

Derivatives risk management involves margins, liquid net worth/assets, pre-trade risk control, risk reduction mode, and position limits.

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NISM Series VII Mock Test 5