n NISM Certifications
XIII NISM Series XIII
Medium

Why will every futures seller prefer to deliver the “cheapest-to-deliver” bond?

Practice question from NISM Series XIII for SIF - Mock Test 8 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Because the Conversion Factor does not change during the Delivery Month

    Correct answer

  2. B

    Because the Conversion Factor varies during the Delivery Month

  3. C

    Because the price of the deliverable bond does not change during the Delivery Month

  4. D

    None of the above

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

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