n NISM Certifications
VII NISM Series VII
Medium

The risk management framework for Futures and Options consists of ________.

Practice question from NISM Series VII Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Liquid assets

  2. B

    Liquid net worth

  3. C

    Margins

  4. All of the above

    Correct answer

Why this is the answer

F&O risk management includes margins, liquid net worth, liquid assets, pre-trade risk control, risk reduction mode, and position limits to control exposure.

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