n NISM Certifications
NSM General NISM
Medium

The USDINR spot rate is 82. Futures price is at a premium to INR. A trader expects the spot on expiry to be 80. What currency futures strategy would be profitable?

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

Options

  1. Sell USDINR

    Correct answer

  2. B

    Buy USDINR

  3. C

    Buy USDINR for one month and sell for three months

  4. D

    Sell USDINR for one month and buy for three months

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

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