Derivetives by Abhinav joshi

Derivatives for Managing Financial Risk

Contents: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Derivatives and Risk Hedging ,[object Object],[object Object],[object Object]

Advantages of Risk Management through Hedging ,[object Object],[object Object],[object Object]

Risk Hedging with Options ,[object Object],[object Object],[object Object]

Example ,[object Object],[object Object]

Forward Contracts ,[object Object],[object Object],[object Object]

Futures Contracts ,[object Object],[object Object],[object Object],[object Object]

Financial Futures ,[object Object]

Futures Contracts Vs. Forward Contracts FORWARD CONTRACT FUTURE CONTRACT No initial payment is required. Initial payment is required. Contract size depends on the transaction and the requirements of the contracting parties. Contract size is standardized. Expiry date depends on the transaction. Expiry date is standardized. Negotiated directly by the buyer and seller. Quoted and traded on the exchange.

Futures and Spot Prices of Financial Futures ,[object Object],[object Object]

Spot and Future Prices of Commodity Futures ,[object Object]

Swaps ,[object Object],[object Object],[object Object],[object Object]

Example MIBOR Rate 8.50% 9.00% 9.50% Fixed-rate portfolio return (9% × Rs 200 million) 18 18 18 + Net cash flow on swap [(MIBOR – 0.09) × Rs 200 million] – 1 — 1 Net payment 17 18 19

Use of Derivatives ,[object Object],[object Object]

Use of Derivatives Contd. ,[object Object]

PRESENTATION BY:- Surabhi Jain & Udayan Singh

Derivetives by Abhinav joshi

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (20)

Andere mochten auch

Andere mochten auch (14)

Ähnlich wie Derivetives by Abhinav joshi

Ähnlich wie Derivetives by Abhinav joshi (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Derivetives by Abhinav joshi