n NISM Certifications
X NISM Series X
Medium

What is the net economic value of all derivative positions in the market?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 7 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Extends infinitely

  2. B

    Fluctuates with the underlying asset

  3. Equal to zero

    Correct answer

  4. D

    Cannot be accurately measured

Why this is the answer

Derivatives are zero-sum; gains by one participant equal losses by another, balancing out to zero overall.

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