Which of the following statements regarding the Rupee Derivative Market is incorrect?
1
Rupee Derivative Markets facilitate the exchange of financial instruments that are specifically designed for the risk management of currency exposure, including the Indian Rupee.
2
Participants in the Rupee Derivative Market can only engage in hedging activities and are strictly prohibited from speculative trading to forecast the currency's movement.
3
The market includes various financial derivatives like futures, options, and swaps, allowing for both speculation and hedging against the Rupee's volatility.
4
International investors have access to the Rupee Derivative Market, enabling them to hedge or speculate on the Rupee’s movement against other currencies.
5
Question Not Attempted