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      Question

      In the RBIтАЩs circular on hedging foreign exchange

      risk, what is the maximum notional amount for derivative contracts involving INR without requiring underlying exposure?
      A USD 50 million Correct Answer Incorrect Answer
      B USD 75 million Correct Answer Incorrect Answer
      C USD 150 million Correct Answer Incorrect Answer
      D USD 100 million Correct Answer Incorrect Answer
      E USD 200 million Correct Answer Incorrect Answer

      Solution

      As per the circular on "Risk Management and Inter-Bank Dealings," derivative contracts involving INR can go up to USD 100 million without needing underlying exposure.

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