n NISM Certifications
XIII NISM Series XIII
Medium

To confirm whether a futures transaction is for hedging or for speculation is centered on ______ .

Practice question from NISM Series XIII for SIF - Mock Test 9 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Basic intention of the person entering into the transaction

  2. Whether there already exists a related commercial position which has a risk of loss due to price movement

    Correct answer

  3. C

    Whether the futures position is held till expiry date

  4. D

    Whether the transaction has resulted in a profit or a loss

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

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