FULLY SOLVED BOOK LASY 5 YEARS PAPERS SOLVED PLUS GUESS
DERIVATIVES MANAGEMENT
Unit-I
Derivative – Common Derivative Products – Functions Performed by Derivatives Market – Risks Associated with Derivatives – History of Derivatives in India – Forward Contract – Limitation of Forward Contract – Pricing of Forward Contract.
Unit-II
Futures – Future Contract Specifications – Market Participants in a Futures Contract – Hedging using Futures Contract – Valuation of Futures Contract – Difference between Forward and Future Contract – Futures Strategies – Types of Futures – Individual Stocks – Stock Indices – Foreign Exchange Futures – Commodity Futures – Interest Rate Futures – Utility of Futures Market.
Unit-III
Options – Characteristics – Specifications – Option Pricing – Binomial Model – Black Scholes Model – Option Trading Strategies – Bullish Strategies – Bearish strategies – Strategies for Volatile Situations – Exotic Options – Futures versus Call options.
Unit-IV
Warrants – Features – Gearing Effect – Valuing Warrants – Warrants versus Options, Swaps – Features – Mechanism of Interest Rate Swaps – Valuation of Interest Rate Swaps – Currency Swaps – Gain from Swaps – Rate Anticipators.
Unit-V
Derivatives – Trading mechanism – Types of Orders – Clearing and Settlement of Orders – Regulation of Derivative Market – Recent Developments in Capital Market.
