Economics · Financial Markets
Evaluate these statements regarding the derivatives market in India: Statement 1: Derivatives are financial contracts whose value is derived from the value of an underlying asset such as a stock index or commodity. Statement 2: The minimum contract size for equity derivatives in India was initially set at 5 lakh rupees at the time of its introduction. Statement 3: Futures contracts are standardized exchange-traded contracts while Forward contracts are customized and traded over-the-counter. Statement 4: Options give the buyer the right but not the obligation to buy or sell the underlying asset at a specified price. Identify the correct set.
- 1Statement 1, 3 and 4 are correct.
- 2All statements are correct.✓
- 3Statement 2 and Statement 3 are correct.
- 4Statement 1 and Statement 4 are correct.
Correct answer
All statements are correct.
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