Finance

NATIONAL INSTITUTE OF SECURITIES MARKETS
An Educational Initiative by SEBI

Curriculum
NISM-Series-VIII: Equity Derivatives Certification Examination
VIII:
I. Basics of Derivatives
A. Basics of derivatives
B. Evolution of derivatives m market C. Indian derivatives Market erivatives D. Market participants
E. Types of derivatives market erivatives markets
F. Significance of derivatives erivatives G. Various risk faced by the participants in derivatives
II. Understanding Index
A. Introduction to Index
B. Significance and economic purpose of Index
C. Types of Indices
D. Attributes of an Index and concept of impact cost
E. Index management
F. Major Indices in India
G. Applications of Index
III. Introduction to Forward and Futures
Forwards
A. Introduction to Forwards and Futures contracts
B. Payoff Charts for Futures contract
C. Futures pricing
 Cash and carry / Non-arbitrage model for futures pricing arbitrage  Expectancy model of futures pricing
 Concept of convergence of cash and futures prices oncept D. Basic differences in Commodity, Equity and Index Futures
E. Uses of futures
 Role of different players in futures market ole  Use of futures contract as an effective instrument for managing risk se  Strategies for hedging, speculation and arbitrage in futures market trategies IV. Introduction to Options
A. Basics of options
B. Payoff Charts for Options
C. Basics of options pricing and option Greeks
 Fundamentals of options pricing ptions  Overview of Binomial and Black-Scholes option pricing models verview  Basics of Option Greeks
D. Uses of Options

NISM-Series-VIII: Equity Derivatives Certification Examination
VIII:

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NATIONAL INSTITUTE OF SECURITIES MARKETS
An Educational Initiative by SEBI
V. Option Trading Strategies
A. Option spreads and their payoff charts
B. Straddle: market view and payoff charts
C. Strangle: market view and payoff charts
:
D. Covered Call: market view