NATIO ONAL STOCK EXCHA S ANGE OF INDIA LIMITE A ED

Depart rtment : SB BU-Educatio on NCFM COURS OUTLINE M SE

Derivat tives Marke (Dealers) Module (D et DMDM)

Introduction to Derivatives n Types of De erivative Cont tracts, Histor of Financial Derivatives Markets, P ry Participants in a Derivativ ve Market, Economic Funct tion of The D Derivative Ma arket . ding Interest Rates and Stock Indic t ces Understand Understandi Interest rates, Unders ing r standing the Stock Index, Economic S Significance of Index Movements, Index Cons , struction Issu ues, Desirable Attributes of an Index, Applications of Index. s Futures Contracts, Mec chanism an d Pricing Fo orward Cont tracts Limitations of forward markets, Intro m oduction to Futures, Distin nction betwe Futures and Forwards een a Contracts, F ding Underly Futures Term minology, Trad ying vs. Trading Single S Stock Futures Futures s, Payoffs, Pric cing Futures, Pricing Stoc Futures. ck Application of Futures Contracts n Understandi Beta, Numerical illust ing tration of App plications of Stock Future es Options Co ontracts, Mechanism an Applicatio nd ons Option Term minology, Com mparison bet tween Future and Optio es ons, Options Payoffs, App plication of Options Options Con ntracts and G Greek Letters Pricing of O Variables aff ffecting Optio Pricing, Th Black Sch on he holes Merton Model for O n Option Pricing (BSO), The g e Greeks Derivatives Contracts Trading of D Futures and Options Tra ading System The Trade Workstation, Futures a nd Options Market m, er M Instruments, Criteria for Stocks and I , Index Eligibil for Tradin Charges lity ng, Clearing an Settlemen nd nt Clearing Ent tities, Clearin Mechanis Settlement Procedure Risk Mana ng sm, e, agement, Ma argining Syst tem Regulatory Framework k Securities C Contracts (Re egulation) Ac 1956, Securities and Exchange Bo ct, E oard of India Act, 1992, Regulation f Derivative Trading, A for es Adjustments for Corporate Actions Accounting for Derivat g tives Accounting f futures, Accounting fo options, Ta for A or axation of De erivative Tra nsaction in Securities S

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