logging in or signing up Financial Derivatives jayakanesh Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 4436 Category: Education License: All Rights Reserved Like it (5) Dislike it (0) Added: October 30, 2009 This Presentation is Public Favorites: 4 Presentation Description No description available. Comments Posting comment... By: rahul693 (14 month(s) ago) please allow the derivative ppt to be downloaded or mail it to me on my mail id my mail id is agarwalla.rahul693@gmail.com Saving..... Post Reply Close Saving..... Edit Comment Close By: sv1sv (15 month(s) ago) Great work!! Appreciate it. Saving..... Post Reply Close Saving..... Edit Comment Close By: lostgirl111 (17 month(s) ago) y i cant download this ppt??????????????????? Saving..... Post Reply Close Saving..... Edit Comment Close By: mahankal (22 month(s) ago) its very nice to see Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript FINANCIAL DERIVATIVES : FINANCIAL DERIVATIVES PRESENTED BY JAYA KANESH R R.BUPATHY & CO., CHARTERED ACCOUNTANTS DERIVIATIVES : DERIVIATIVES A Derivative is a product whose value is derived from the value of one or more underlying asset. Eg: Equity Forex Commodity Currency or Any Other Asset MARKET INDEX : MARKET INDEX An Index is a number which measures the change in a set of values over a period of time The base value of Nifty on the start date of November 3, 1995 is 1000 Points Every stock price moves for 2 Major reasons News about the Company News about the Nation Nifty is a combination of 50 stocks and sensex is of 30 Types of Indexes : Types of Indexes Price Weighted Index Weight Proportional to its stock price Not used in INDIA Market Capitalization weighted index Current Market Capitalization Index= ------------------------------------ X Base Value Base Market Capitalization Free Float (Excluding Promoters Shares) – BSE & NSE Full Float (Including Promoters Shares) Types of Derivatives : Types of Derivatives Forward Contract : Forward Contract Characteristics : Characteristics Fully Customized Contract No Involvement of Stock Exchange Mostly OTC Actual Delivery of Asset takes Place Counter Party Risk Limitations of Forward Market : Limitations of Forward Market Lack of Centralization No Hard and Fast Rules No Involvement of Stock Exchange Too much Flexibility makes the Contract Non-Tradable Illiquidity Both the parties have to wait till the time of maturity No one can come out of the contract Counterparty Risk Default by one party makes the other party to suffer Future Contracts : Future Contracts Futures v/s Forwards : Futures v/s Forwards Future Terminology : Future Terminology Spot Price Future Price Contract cycle Expiry date Contract size Initial margin Marking to market Maintenance of margin Future Payoffs (Profit) : Future Payoffs (Profit) Long Futures Future Payoffs (Profit) : Future Payoffs (Profit) Short Futures Application of Futures : Application of Futures Hedging – A Risk Management Tool Speculation Arbitrage Option Contracts : Option Contracts Options Payoffs : Options Payoffs Swap : Swap Similar to Phone SWAP Especially for Banks Not Followed in India THANK YOU : THANK YOU FOR MORE INFO www.jaiganeshca.blogspot.com You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
Financial Derivatives jayakanesh Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 4436 Category: Education License: All Rights Reserved Like it (5) Dislike it (0) Added: October 30, 2009 This Presentation is Public Favorites: 4 Presentation Description No description available. Comments Posting comment... By: rahul693 (14 month(s) ago) please allow the derivative ppt to be downloaded or mail it to me on my mail id my mail id is agarwalla.rahul693@gmail.com Saving..... Post Reply Close Saving..... Edit Comment Close By: sv1sv (15 month(s) ago) Great work!! Appreciate it. Saving..... Post Reply Close Saving..... Edit Comment Close By: lostgirl111 (17 month(s) ago) y i cant download this ppt??????????????????? Saving..... Post Reply Close Saving..... Edit Comment Close By: mahankal (22 month(s) ago) its very nice to see Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript FINANCIAL DERIVATIVES : FINANCIAL DERIVATIVES PRESENTED BY JAYA KANESH R R.BUPATHY & CO., CHARTERED ACCOUNTANTS DERIVIATIVES : DERIVIATIVES A Derivative is a product whose value is derived from the value of one or more underlying asset. Eg: Equity Forex Commodity Currency or Any Other Asset MARKET INDEX : MARKET INDEX An Index is a number which measures the change in a set of values over a period of time The base value of Nifty on the start date of November 3, 1995 is 1000 Points Every stock price moves for 2 Major reasons News about the Company News about the Nation Nifty is a combination of 50 stocks and sensex is of 30 Types of Indexes : Types of Indexes Price Weighted Index Weight Proportional to its stock price Not used in INDIA Market Capitalization weighted index Current Market Capitalization Index= ------------------------------------ X Base Value Base Market Capitalization Free Float (Excluding Promoters Shares) – BSE & NSE Full Float (Including Promoters Shares) Types of Derivatives : Types of Derivatives Forward Contract : Forward Contract Characteristics : Characteristics Fully Customized Contract No Involvement of Stock Exchange Mostly OTC Actual Delivery of Asset takes Place Counter Party Risk Limitations of Forward Market : Limitations of Forward Market Lack of Centralization No Hard and Fast Rules No Involvement of Stock Exchange Too much Flexibility makes the Contract Non-Tradable Illiquidity Both the parties have to wait till the time of maturity No one can come out of the contract Counterparty Risk Default by one party makes the other party to suffer Future Contracts : Future Contracts Futures v/s Forwards : Futures v/s Forwards Future Terminology : Future Terminology Spot Price Future Price Contract cycle Expiry date Contract size Initial margin Marking to market Maintenance of margin Future Payoffs (Profit) : Future Payoffs (Profit) Long Futures Future Payoffs (Profit) : Future Payoffs (Profit) Short Futures Application of Futures : Application of Futures Hedging – A Risk Management Tool Speculation Arbitrage Option Contracts : Option Contracts Options Payoffs : Options Payoffs Swap : Swap Similar to Phone SWAP Especially for Banks Not Followed in India THANK YOU : THANK YOU FOR MORE INFO www.jaiganeshca.blogspot.com