Professional Documents
Culture Documents
PRESENTED BY
JEETENDRA SINGH
ROLL NO (56)
Topics
Derivatives
Futures
Forwards
Mark to mark
Swaps
Options
Margin
Index options
Implied volatility
Leveraged Positions
Lesser transaction costs
Ease of creating positions
Derivatives as Risk Management
Products
Derivatives as Trading Products
Types of Derivatives
Uses of Derivatives
Users of Derivatives
Hedgers.
Traders.
Private clients.
Arbitrageurs.
Forwards
Futures
Afutures contractis a
standardizedcontractbetween two parties to buy
or sell a specified asset of standardized quantity
and quality for a price agreed today priceorstrike
with delivery and payment occurring at a
specified future date, the delivery date.
Three series of future contract are always
available and have one-month, two month, and
three month expiry cycles.
Example-on a 3rd August 2011,jeetendra enters
into a August 2011 Future contract for buying
1000 shares of godrej Ltd.
Future
Traded on an exchange
Not standardized
Standardized Contract
Settled daily
Swaps
Options
Types of Options
OPTION
S
CALL
PUT
Call Option
Put Option
Put Option
In the money
At the money
Out of money