n NISM Certifications
NSM General NISM
Medium

The underlying for short-term interest rate derivatives is ___________.

Practice question from NISM Series IV - Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Short tenor rate in the long run

  2. Short tenor rate in the short run (Correct)

    Correct answer

  3. C

    Long tenor rate in the long run

  4. D

    Long tenor rate in the short run

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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