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DERIVATIVES PRESENTATION BY S.K.VAZE
DERIVATIVES DERIVATIVES IS THE FUTURE  !! WHY  ???
DERIVATIVES INTRODUCTION ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
DERIVATIVES ,[object Object],[object Object],[object Object],[object Object],[object Object]
DERIVATIVES INTRODUCTION ,[object Object],[object Object]
DERIVATIVES ,[object Object],[object Object],[object Object],[object Object],[object Object]
DERIVATIVES ,[object Object]
DERIVATIVES ,[object Object]
DERIVATIVES ,[object Object]
DERIVATIVES ,[object Object]
DERIVATIVES FORWARD CONTRACT ,[object Object],[object Object],[object Object]
DERIVATIVES FORWARD CONTRACT ,[object Object],[object Object]
DERIVATIVES FORWARD CONTRACT ,[object Object],[object Object],[object Object]
DERIVATIVES FORWARD CONTRACT ,[object Object],[object Object]
DERIVATIVES FORWARD CONTRACT ,[object Object],[object Object],[object Object]
DERIVATIVES FORWARD CONTRACT ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
DERIVATIVES FORWARD CONTRACT ,[object Object],[object Object]
DERIVATIVES DIFFERENCES BETWEEN FORWARD CONTRACT AND FUTURES 15 % TO 30 % NIL MARGIN ON THE EXCHANGES OVER THE COUNTER TRADING NONE MAY EXIST COUNTERPARTYLIQUIDITY RISK STANDARD FLEXIBLE MATURITY STANDARD FLEXIBLE AMOUNT FUTURES FORWARD CONTRACT
DERIVATIVES FUTURES CONTRACT ,[object Object],[object Object],[object Object]
DERIVATIVES FUTURES CONTRACT ,[object Object],[object Object],[object Object]
DERIVATIVES FUTURES CONTRACT ,[object Object],[object Object]
DERIVATIVES FUTURES CONTRACT ,[object Object],[object Object],[object Object]
DERIVATIVES FUTURES CONTRACT ,[object Object]
DERIVATIVES FUTURES CONTRACT ,[object Object],[object Object]
DERIVATIVES FUTURES CONTRACT ,[object Object],[object Object],[object Object]
FUTURES CONTRACT ,[object Object]
FUTURES CONTRACT ,[object Object]
FUTURES CONTRACT ,[object Object],[object Object]
FUTURES CONTRACT ,[object Object],[object Object]
FUTURES CONTRACT  MARKING TO MARKET ,[object Object],[object Object],[object Object]
FUTURES CONTRACT  MARKING TO MARKET ,[object Object],[object Object],[object Object],[object Object]
FUTURES CONTRACT  MARKING TO MARKET ,[object Object],[object Object],[object Object],[object Object],[object Object],17000 3000 -20000 280000 NET CASH OUTFLOW MARGIN RELEASED LOSS CLOSE PRICE
FUTURES CONTRACT  MARKING TO MARKET ,[object Object],[object Object],[object Object],18700 3300 22000 302000 NET CASH INFLOW ADDITIONMARGIN LOSS / GAIN CLOSE PRICE
FUTURES CONTRACT  MARKING TO MARKET ,[object Object],[object Object],[object Object],63600 (18000+45300) 18000 320000 NET CASH INFLOW LOSS / GAIN CLOSE PRICE
FUTURES CONTRACT  MARKING TO MARKET ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
FUTURES CONTRACT  MARKING TO MARKET ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
FUTURES CONTRACT  MARKING TO MARKET ,[object Object]
FUTURES CONTRACT ,[object Object]
FUTURES CONTRACT ,[object Object]
FUTURES CONTRACT ,[object Object]
FUTURES CONTRACT ,[object Object]
FUTURES CONTRACT ,[object Object],[object Object],[object Object],[object Object],[object Object]
FUTURES CONTRACT ,[object Object],[object Object]
DERIVATIVES INVESTMENT IN DERIVATIVES IS LESSER THAN IN CASE OF  CASH DELIVERY
DERIVATIVES ,[object Object],[object Object]
DERIVATIVES ,[object Object],[object Object]
DERIVATIVES 47.61 % 24000 50400 FUTURES 7.14 % 24000 336000 DELIVERY RETURN PROFIT Rs. INVESTMENT Rs. STRATEGY
FORWARD & FUTURES CONTRACT -DRAWBACKS ,[object Object],[object Object]
FORWARD & FUTURES CONTRACT -DRAWBACKS ,[object Object]
DERIVATIVES ,[object Object],[object Object]
DERIVATIVES OPTIONS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
DERIVATIVES OPTIONS ,[object Object]
DERIVATIVES OPTIONS ,[object Object],[object Object]
DERIVATIVES OPTIONS ,[object Object],[object Object],[object Object]
DERIVATIVES OPTIONS ,[object Object],[object Object],[object Object],[object Object]
DERIVATIVES OPTIONS ,[object Object]
DERIVATIVES OPTIONS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
DERIVATIVES OPTIONS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
DERIVATIVES OPTIONS ,[object Object]
DERIVATIVES OPTIONS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
DERIVATIVES OPTIONS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
DERIVATIVES CALL OPTION ,[object Object]
DERIVATIVES CALL OPTION ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
DERIVATIVES CALL OPTION ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
DERIVATIVES CALL OPTION ,[object Object],[object Object],[object Object],[object Object]
DERIVATIVES CALL OPTION ,[object Object],[object Object],[object Object]
DERIVATIVES PUT OPTION ,[object Object]
DERIVATIVES PUT OPTION ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
DERIVATIVES PUT OPTIONS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
DERIVATIVES PUT OPTIONS ,[object Object],[object Object],[object Object],[object Object]
DERIVATIVES PUT OPTIONS ,[object Object],[object Object],[object Object]
DERIVATIVES OPTIONS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
DERIVATIVES OPTIONS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
INR / USD OPTIONS PREMIUM QUOTATIONS 0.25 0.10 0.04 0.01 PUT 0.60 0.48 O.39 0.33 CALL 49.00 48.25 47.75 47.50 STRIKE PRICE 12M 6M 3M 1M EXPIRY (INR / $) premium
INR / USD OPTIONS PREMIUM QUOTATIONS ,[object Object],[object Object],[object Object]
DERIVATIVES OPTIONS ,[object Object],[object Object]
DERIVATIVES OPTIONS ,[object Object]
View of currency View of risk Action Very bullish Risk averse Buy currency forward Very bullish Risk tolerant  Buy currency forward Bullish  Risk averse Buy currency forward Bullish Risk tolerant Buy atm call Flat market  Risk averse  Buy ootm call    Flat market Risk tolerant  Do nothing * No view Risk averse Buy atm call No view Risk tolerant Do nothing * Bearish Risk averse Buy ootm call Bearish Risk tolerant Do nothing * Very bearish Risk averse Buy far ootm call Very bearish Risk tolerant Do nothing *
CAP ,[object Object],[object Object]
CAP ,[object Object]
CAP ,[object Object]
CAP ,[object Object]
CAP ,[object Object]
CAP ,[object Object]
CAP ,[object Object],[object Object]
CAP ,[object Object],[object Object]
CAP ,[object Object]
FLOOR ,[object Object]
FLOOR ,[object Object]
FLOOR ,[object Object]
FLOOR ,[object Object]
FLOOR ,[object Object],[object Object]
FLOOR ,[object Object]
FLOOR ,[object Object],[object Object]
FLOOR ,[object Object],[object Object]
FLOOR ,[object Object]
INTEREST RATE SWAP ,[object Object],[object Object]
INTEREST RATE SWAP ,[object Object]
INTEREST RATE SWAP ,[object Object]
INTEREST RATE SWAP ,[object Object],[object Object]
INTEREST RATE SWAP ,[object Object],[object Object]
INTEREST RATE SWAP ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
INTEREST RATE SWAP ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
CURRENCY SWAPS ,[object Object]
CURRENCY SWAPS ,[object Object]
CURRENCY SWAPS ,[object Object]
CURRENCY SWAPS ,[object Object]
CURRENCY SWAPS ,[object Object]
CURRENCY SWAPS ,[object Object],[object Object]
CURRENCY SWAPS ,[object Object]
DERIVATIVES INTRODUCTION ,[object Object],[object Object],[object Object],[object Object]
DERIVATIVES INTRODUCTION ,[object Object]
DERIVATIVES INTRODUCTION ,[object Object]
DERIVATIVES INTRODUCTION ,[object Object]
DERIVATIVES INTRODUCTION ,[object Object]
DERIVATIVES INTRODUCTION ,[object Object],[object Object],[object Object]

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Derivatives

  • 2. DERIVATIVES DERIVATIVES IS THE FUTURE !! WHY ???
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.
  • 15.
  • 16.
  • 17.
  • 18. DERIVATIVES DIFFERENCES BETWEEN FORWARD CONTRACT AND FUTURES 15 % TO 30 % NIL MARGIN ON THE EXCHANGES OVER THE COUNTER TRADING NONE MAY EXIST COUNTERPARTYLIQUIDITY RISK STANDARD FLEXIBLE MATURITY STANDARD FLEXIBLE AMOUNT FUTURES FORWARD CONTRACT
  • 19.
  • 20.
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  • 37.
  • 38.
  • 39.
  • 40.
  • 41.
  • 42.
  • 43.
  • 44. DERIVATIVES INVESTMENT IN DERIVATIVES IS LESSER THAN IN CASE OF CASH DELIVERY
  • 45.
  • 46.
  • 47. DERIVATIVES 47.61 % 24000 50400 FUTURES 7.14 % 24000 336000 DELIVERY RETURN PROFIT Rs. INVESTMENT Rs. STRATEGY
  • 48.
  • 49.
  • 50.
  • 51.
  • 52.
  • 53.
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  • 67.
  • 68.
  • 69.
  • 70.
  • 71.
  • 72.
  • 73.
  • 74. INR / USD OPTIONS PREMIUM QUOTATIONS 0.25 0.10 0.04 0.01 PUT 0.60 0.48 O.39 0.33 CALL 49.00 48.25 47.75 47.50 STRIKE PRICE 12M 6M 3M 1M EXPIRY (INR / $) premium
  • 75.
  • 76.
  • 77.
  • 78. View of currency View of risk Action Very bullish Risk averse Buy currency forward Very bullish Risk tolerant Buy currency forward Bullish Risk averse Buy currency forward Bullish Risk tolerant Buy atm call Flat market Risk averse Buy ootm call   Flat market Risk tolerant Do nothing * No view Risk averse Buy atm call No view Risk tolerant Do nothing * Bearish Risk averse Buy ootm call Bearish Risk tolerant Do nothing * Very bearish Risk averse Buy far ootm call Very bearish Risk tolerant Do nothing *
  • 79.
  • 80.
  • 81.
  • 82.
  • 83.
  • 84.
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