Exit price
What fair value means for a derivative — the price that would be paid to transfer a liability or received on transferring an asset to a knowledgeable, willing counterparty.
This one is not written up yet
The definition above is the short version. A full explanation — how it works, a worked example and the exam traps — is still being written. In the meantime the chapter below covers it in context.
Written up from the same chapter
Where this is taught
Free preparation for NISM Series XVI← All terms