The derivatives modules carry 55% of this exam's marks, and payoff logic is genuinely easier to see than to read. These four cover what candidates most often mix up.
1. Forward vs. futures contract
Same basic idea — an agreement to transact later at a set price — but very different mechanics.
Why it matters: "which carries counterparty risk" and "which is marked to market daily" are the two facts most directly tested here.
2. Call & put option payoff diagrams
A long call's loss is capped at the premium paid; its gain is theoretically unlimited. A long put's gain is capped at the strike price (since the underlying can't go below zero).
Why it matters: payoff-diagram questions ask you to match a described position (long call, long put, short call, short put) to its correct shape — practice sketching all four from memory.
3. The option Greeks, at a glance
Four Greeks, four different sensitivities — the exam tests whether you can match each to what it measures.
Why it matters: a question describing "an option's sensitivity to time decay" is asking you to name Theta — this kind of direct matching recurs across both equity and interest rate option chapters.
The concrete numbers behind the GOI security IRF contract — a reliable, fact-based source of marks.
Why it matters: these specific numbers (lot size, tick size, maturity buckets, expiry day) are directly quotable and show up as standalone fact questions.