📊 NISM Series V-D Chapter 20 of 22 ⚖ 10 of 150 marks weightage

Ch.20: Exchange Traded Interest Rate Futures

Practice questions for NISM-Series-VD: Mutual Fund - Specialised Investment Fund Distributors Certification Examination, Chapter 20: Exchange Traded Interest Rate Futures — covering Interest Rate Futures terminology and payoffs, contract specifications for GOI bond futures, 91-day T-Bill futures, Overnight MIBOR futures and Corporate Bond Index futures, lot/tick size and contract value mechanics, the rationale for exchange-traded IRF in India, FRA vs. Futures comparison, and interest rate futures price computation (forward rate, cost of carry, basis, bond futures pricing). Carries 10 out of 150 marks — the heaviest-weighted chapter in Module 3. The exam has 150 MCQs, 60% passing score, and −10% negative marking per wrong answer.

What You Will Learn in This Chapter

Interest Rate Futures terminology (open interest, MTM, daily/final settlement price, tick size, contract cycle, rollover) and linear payoff charts for long and short futures
Contract specifications for Cash-Settled GOI Bond Futures (6/10/13-year), 91-Day T-Bill Futures, Overnight MIBOR Futures, and Corporate Bond Index Futures (CBIF)
Lot size, tick size and contract value computation for each IRF product type, and why exchange-traded interest rate derivatives were introduced in India
Advantages and limitations of exchange-traded Futures compared to OTC Forward Rate Agreements (FRAs)
Interest rate futures price computation — forward rate derivation from spot rates, financing cost/cost of carry, basis, and the theoretical bond futures pricing model (cash price + financing cost − income on cash position)

Key Terms:Open InterestMark to Market (MTM)Tick SizeCost of CarryBasisForward RateContract CycleFinal Settlement PriceRolloverCash-Settled GOI Bond Futures

Free Sample Question

Q1MCQMediumKey Futures Characteristics

Which of the following is explicitly listed as an important characteristic of futures trading in the workbook?

✓Futures trading is a zero-sum equation — one trader's profit exactly equals the opposite trader's loss

BFutures offer only limited profit and limited loss potential

CMargins are payable only by the buyer, never the seller

DPositions cannot be squared off before expiry under any circumstances

💡 Futures trade is a zero-sum equation — the profit of one trader is exactly equal to the loss of the opposite trader. Futures trading offers unlimited profit and unlimited loss potential, and positions can be offset via an opposite (square-off) trade before expiry.

41 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 20: Exchange Traded Interest Rate 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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← Ch.19: Interest Rate Derivatives Ch.21: Exchange Traded Interest Rate Options →