SlideShare uma empresa Scribd logo
1 de 92
 
[object Object],[object Object],[object Object],[object Object]
 
[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object]
 
 
What are the Importance of Derivatives
[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],[object Object]
What do you mean by “HEDGING”?
[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object]
What are different types of hedging?
[object Object],Risk Mitigation Measures Natural Hedging Hedging by Contracts Currency denomi-nation Netting and offsetting Leading and lagging Definition FORWARDS OTHERS OPTIONS FUTURES
PARTICIPANTS in the derivatives market
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
1. Trading participants  ,[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],[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],[object Object],[object Object]
Spot exchange  market
 
[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]
[object Object],[object Object],[object Object]
Quotations on Forward Markets
 
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],These limitations lead to another form of contract called as ‘futures’. Pros Cons
CURRENCY OPTIONS
[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Participants of futures contract
[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]
Trading Process
BUYER (TRADER) SELLER (TRADER) BROKER (MEMBER) BROKER (MEMBER) CLEARING HOUSE TRANSACTION PURCHASE ORDER SALES ORDER
[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],[object Object],Cons   Pros
 
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
OPTIONS
[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],Put Option  Call Option  The  right to sell  a specified amount of currency at a specified rate   The  right to buy  a specified amount of currency at a specified rate  
[object Object],The  price  of an option ( price paid for buying an option) Expiry Date  The  date  at which right can be exercised Exercise Price  The  rate  at which the right can be exercised (also known as  strike price )
 
European Option American Option Bermudan Option In this the right can be exercised only on a fixed date in the contract; i.e. Option only exercisable on the expiry date. In this the right can be exercised on or before a fixed date in the contract, i.e. Option exercisable at any time until expiry date.    This has pre-specified dates during its life till maturity, on which it can be exercised.
[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],[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],[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],[object Object],[object Object],[object Object]
[object Object]
[object Object]
 
Strategy with call Option. Spot rate Gain (+)/Loss (-) for the buyer of call option $ 0.6000 - $ 0.02 $ 0.6200 -$0.02 $ 0.6400 - $ 0.02 $ 0.6500 - $ 0.02 $ 0.6600 - $ 0.02 $ 0.6700 -$0.02 $ 0.6800 -$0.02 $ 0.6900 -$0.01 $ 0.7000 $0.00 $0.7100 + $0.01 $0.7200 + $ 0.02 $ 0.7400 + $ 0.04 $ 0.7600 + $ 0.06
[object Object],[object Object]
Strategy with put Option. S t Gain(+)/loss (-) 1.6050 +0.050 1.6150 +0.040 1.6250 +0.030 1.6350 +0.020 1.6450 +0.010 1.6500 +0.005 1.6550 +0.000 1.6600 -0.005 1.6650 -0.010 1.6750 -0.020 1.6850 -0.030 1.6950 -0.040 1.7050 -0.050 1.7150 -0.060 1.7250 -0.060 1.7350 -0.060
[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object]
[object Object]
[object Object]
[object Object],[object Object]
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All about futures and options

  • 1.  
  • 2.
  • 3.  
  • 4.
  • 5.
  • 6.  
  • 7.  
  • 8. What are the Importance of Derivatives
  • 9.
  • 10.
  • 11. What do you mean by “HEDGING”?
  • 12.
  • 13.
  • 14. What are different types of hedging?
  • 15.
  • 16. PARTICIPANTS in the derivatives market
  • 17.
  • 18.
  • 19.
  • 20.
  • 21.
  • 22.
  • 23.
  • 24.
  • 25.
  • 26.
  • 27. Spot exchange market
  • 28.  
  • 29.
  • 30.
  • 31.
  • 32.
  • 33.
  • 34.  
  • 35.  
  • 36.
  • 37.
  • 38.
  • 40.  
  • 41.
  • 43.
  • 44.
  • 46.
  • 47.
  • 48.
  • 49.
  • 51. BUYER (TRADER) SELLER (TRADER) BROKER (MEMBER) BROKER (MEMBER) CLEARING HOUSE TRANSACTION PURCHASE ORDER SALES ORDER
  • 52.
  • 53.
  • 54.
  • 55.  
  • 56.
  • 58.
  • 59.
  • 60.
  • 61.  
  • 62. European Option American Option Bermudan Option In this the right can be exercised only on a fixed date in the contract; i.e. Option only exercisable on the expiry date. In this the right can be exercised on or before a fixed date in the contract, i.e. Option exercisable at any time until expiry date.   This has pre-specified dates during its life till maturity, on which it can be exercised.
  • 63.
  • 64.  
  • 65.
  • 66.
  • 67.
  • 68.
  • 69.
  • 70.
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  • 72.
  • 73.
  • 74.  
  • 75.
  • 76.  
  • 77.
  • 78.
  • 79.
  • 80.
  • 81.
  • 82.
  • 83.  
  • 84. Strategy with call Option. Spot rate Gain (+)/Loss (-) for the buyer of call option $ 0.6000 - $ 0.02 $ 0.6200 -$0.02 $ 0.6400 - $ 0.02 $ 0.6500 - $ 0.02 $ 0.6600 - $ 0.02 $ 0.6700 -$0.02 $ 0.6800 -$0.02 $ 0.6900 -$0.01 $ 0.7000 $0.00 $0.7100 + $0.01 $0.7200 + $ 0.02 $ 0.7400 + $ 0.04 $ 0.7600 + $ 0.06
  • 85.
  • 86. Strategy with put Option. S t Gain(+)/loss (-) 1.6050 +0.050 1.6150 +0.040 1.6250 +0.030 1.6350 +0.020 1.6450 +0.010 1.6500 +0.005 1.6550 +0.000 1.6600 -0.005 1.6650 -0.010 1.6750 -0.020 1.6850 -0.030 1.6950 -0.040 1.7050 -0.050 1.7150 -0.060 1.7250 -0.060 1.7350 -0.060
  • 87.
  • 88.
  • 89.
  • 90.
  • 91.