Workbook for NISM-Series-VIII: Equity Derivatives Certification Examination National Institute of Securities Markets www.nism.ac.in 1 This workbook has been developed to assist candidates in preparing for the National Institute of Securities Markets (NISM) NISM-Series-VIII: Equity Derivatives Certification Examination (NISM-Series-VIII: ED Examination). Workbook Version: April 2014 Published by: National Institute of Securities Markets © National Institute of Securities Markets‚ 2012 Plot 82
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thank GOD almighty for giving us strength to complete this project. Introduction A derivative is a financial contract which derives its value from the performance of another entity such as an asset‚ index‚ or interest rate‚ called the "underlying". Derivatives are one of the three main categories of financial instruments‚ the other two being equities (i.e. stocks) and debt (i.e. bonds and mortgages). Derivatives include a variety of financial contracts‚ including futures‚ forwards‚ swaps‚ options
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www.edupristine.com Derivatives- I Mapping to Curriculum • Reading 60: Derivative Markets and Instruments • Reading 61: Forward Markets and Contracts • Reading 62: Future Markets and Contracts Expect around 6 questions in the exam from today’s lecture © Neev Knowledge Management – Pristine 2 www.edupristine.com Key Concepts • Difference Between OTC And Exchange Traded Contracts • Payoffs of Futures and Forwards • FRA‘s • Margins • Types of Futures © Neev Knowledge Management
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Financial Derivatives DERIVATIVE SECURITY: A derivative security is a security whose value is contingent on the value of other more basic underlying variables. Hence derivatives are also known as contingent claims. Very often the variables underlying derivatives securities are the prices of traded securities. For example‚ stock option. Futures and Options ⇒⇒⇒⇒⇒⇒ actively traded on the many different exchanges. Forward Contracts‚ Swaps ⇒⇒⇒⇒⇒ traded outside of exchanges by financial Institutions
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Contents 1 Introduction to derivatives 1.1 Derivatives defined . . . . . . . . . . . . . . . . 1.2 Products‚ participants and functions . . . . . . . 1.3 Derivatives markets . . . . . . . . . . . . . . . . 1.3.1 Spot versus forward transaction . . . . . 1.3.2 Exchange traded versus OTC derivatives . 1.3.3 Some commonly used derivatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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concept of derivatives market 2. The situation of the stock market and forex market in Vietnam II. Influences of derivatives market as well as on Securities Market Forex market at Vietnam 1. Stock Market a. Growth stock market b. Debt leverage 2. Forex market a. Increase the value of domestic currency b. Exchange rate fluctuations III. Conclusion. I. Introduction 1. Derivative Market The derivatives market is the financial market for derivatives‚ financial
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Online Instructor’s Solutions Manual to accompany Fundamentals of Derivatives Markets First Edition Robert L. McDonald Northwestern University Prepared by Mark Cassano Copyright 2009‚ Pearson Prentice Hall. All Rights Reserved. Executive Editor: Donna Battista Assistant Development Editor: Sara Holliday Production Editor: Heather McNally Copyright © 2009 Pearson Education‚ Inc.‚ Upper Saddle River‚ New Jersey‚ 07458. Pearson Prentice Hall. All rights reserved. This publication
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Public Salience and International Financial Regulation. Explaining the International Regulation of OTC Derivatives‚ Rating Agencies‚ and Hedge Funds by Stefano Pagliari A thesis presented to the University of Waterloo in fulfilment of the thesis requirement for the degree of Doctor of Philosophy in Global Governance Waterloo‚ Ontario‚ Canada‚ 2013 © Stefano Pagliari 2013 I hereby declare that I am the sole author of this thesis. This is a true copy of the thesis‚ including any
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CHAPTER 3 Hedging Strategies Using Futures Tutorial 3 - Practice Questions Problem 3.1. Under what circumstances are (a) a short hedge and (b) a long hedge appropriate? A short hedge is appropriate when a company owns an asset and expects to sell that asset in the future. It can also be used when the company does not currently own the asset but expects to do so at some time in the future. A long hedge is appropriate when a company knows it will have to purchase an asset in the future. It
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History of Derivatives: A Few Milestones EFTA Seminar on Regulation of Derivatives Markets‚ Zurich‚ 3 May 2012 Steve Kummer (research and redaction) and Christian Pauletto (concept and speech delivery) Policy and Trade in Services Division State Secretariat for Economic Affairs SECO Federal Department of Economic Affairs FDEA Introduction This presentation contains a selection of records and events that constitute a part of the history of derivatives. It relates how derivatives date back
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