📊 NISM Series V-D Chapter 15 of 22 ⚖ 15 of 150 marks weightage

Ch.15: Introduction to Forwards and Futures

Practice questions for NISM-Series-VD: Mutual Fund - Specialised Investment Fund Distributors Certification Examination, Chapter 15: Introduction to Forwards and Futures — the single heaviest chapter in the syllabus, covering contract specifications, margins, mark-to-market, futures pricing, and hedging/arbitrage applications. Carries 15 out of 150 marks, the largest weightage of any chapter. The exam has 150 MCQs, 60% passing score, and −10% negative marking per wrong answer.

What You Will Learn in This Chapter

Meaning of forward and futures contracts, and why futures were created to overcome forwards' limitations
Contract specifications and terminology: contract size, expiry, basis, cost of carry, margins, mark-to-market, open interest
Payoff charts for long and short futures positions
Futures pricing models — Cost of Carry and Expectations — including fair price calculation and arbitrage
Applications of futures by hedgers, speculators/traders and arbitrageurs, including beta-based portfolio hedging

Key Terms:BasisCost of CarryInitial MarginMark to MarketOpen InterestContangoBackwardationConvenience YieldBetaCash-and-Carry Arbitrage

Free Sample Question

Q1MCQMediumHedging Terminology

When a market participant expects to receive funds in future and wants to lock in current price levels before investing, they would use a:

AShort hedge

✓Long hedge

CCross hedge

DCalendar spread

💡 A long hedge is when we hedge a future cash-market position by going long in the futures market now — for instance, expecting to receive funds and wanting to lock in today's price level before actually investing.

49 more questions in this chapter

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About this content: These practice questions are based on the NISM-Series-VD: Mutual Fund - Specialised Investment Fund Distributors Certification Examination Workbook published by the National Institute of Securities Markets (NISM), Mumbai (March 2026 edition). NISM is a SEBI-established institution. Questions cover Chapter 15: Introduction to Forwards and Futures with verified answers and explanations. BullWiser is an independent exam preparation platform — not affiliated with NISM, SEBI or AMFI. Last updated: July 24, 2026.

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