NISM Series I (Currency Derivatives) case studies
NISM Series I (Currency Derivatives) · Put your knowledge to work in context.
The NISM-Series-I: Currency Derivatives Certification Examination is one of the certification examinations offered by the National Institute of Securities Markets (NISM), the public trust established in 2006 by the Securities and Exchange Board of India (SEBI). NISM lists it under the Derivatives group of its certification examinations, alongside the Commodity Derivatives, Equity Derivatives, Interest Rate Derivatives and Common Derivatives examinations, and it also maintains a dedicated Currency Derivatives CPE/eCPE programme for continuing education. The NISM Series I (Currency Derivatives) case studies are 5 cases and about 3,498 words.
1Importer with a Cancellable Order: Forwards vs Calls Under a Budget Rate
Surya Polymers Ltd imports PVC resin and holds a confirmed purchase order for USD 2,000,000 payable in three months. The supplier has a 30-day renegotiation window, and procurement estimates a one-in-three chance that the ordered quantity will be cut by 40%.
700 words, about 4 min2Exporter Weighing a Zero-Cost Collar Against a Firm Board Floor
Nandini Agro Exporters expects USD 1,500,000 from a European buyer in four months. The buyer has a history of trimming volumes, and treasury puts the chance of the shipment falling to USD 1,125,000 (a 25% cut) at about one in four.
722 words, about 4 min3Apparent Futures-Forward Arbitrage on a Bank Proprietary Desk
The proprietary desk of an AD bank sees a three-month interbank USD/INR forward quoted 84.15/84.18 and the exchange-traded three-month USD/INR futures contract trading at 84.55. Spot is 83.90, three-month INR money market is 6.80% and three-month USD is 5.30% (both Actual/365, 90 days).
677 words, about 3 min4Trading Member's Margin Shortfall With an Unreachable Client
At the close of trading, a trading member reviews a client's USD/INR June futures account. The client is long 600 lots at an average price of 83.60 (contract size USD 1,000).
688 words, about 3 min5CFO's 24-Month Hedge and a Net-Written Option Structure
Kaveri Engineering has documented USD payables of USD 12,000,000 spread evenly over the next 12 months, plus a further USD 10,000,000 of forecast payables in months 13 to 24 that are not yet contracted. The rupee has weakened from 82.10 to 83.60 in three months and the CFO wants to act now.
711 words, about 4 min