Bonds are fixed income securities, while futures, options, and forwards are all derivative instruments.

The derivatives market serves multiple functions, including facilitating price discovery, managing risk, and providing liquidity to market participants.

SEBI is the primary regulator of the securities market in India, including the derivatives market.

Equity index futures are the most widely traded derivatives contracts in India, followed by stock options, currency futures, and commodity futures.

Margin requirements serve multiple purposes, including reducing counterparty risk, ensuring adequate liquidity, and protecting the clearing corporation.

All of the statements are true. A futures contract is legally binding and requires the delivery of the underlying asset on the expiration date, while an options contract gives the holder the right, but not the obligation, to buy or sell the underlying asset at a specified price on or before the expiration date.

A clearing corporation plays a crucial role in the derivatives market by acting as a central counterparty, managing the settlement of trades, and collecting and maintaining margin requirements.

Basis risk refers to the risk that the spot price of the underlying asset will differ from the futures price at the time of delivery, leading to potential losses for the trader.

Arbitrage is not a risk management technique, but rather a trading strategy that seeks to profit from price discrepancies between different markets or assets.

The strike price in an options contract specifies the price at which the underlying asset can be bought (in the case of a call option) or sold (in the case of a put option) on or before the expiration date.

All of the statements are true. A call option gives the holder the right to buy the underlying asset, while a put option gives the holder the right to sell the underlying asset. A call option is exercised when the spot price is above the strike price, while a put option is exercised when the spot price is below the strike price. A call option has a positive payoff when the spot price is above the strike price, while a put option has a positive payoff when the spot price is below the strike price.

Time value in options pricing refers to the value of an option that is derived from the time remaining until its expiration. It represents the potential for the underlying asset's price to move in the desired direction before the option expires.

A delta hedge is a risk management strategy in options trading that aims to reduce the risk of loss from changes in the underlying asset's price. It involves buying or selling an appropriate number of options or the underlying asset to offset the delta of the option position.

Gamma in options pricing refers to the rate of change of delta with respect to the underlying asset's price. It measures the sensitivity of an option's delta to changes in the underlying asset's price.