Chapter 17 - Equity Derivatives : Introduction
Chapter 17 - Equity Derivatives : Introduction
As you are aware the financial derivatives have become increasingly popular and most commonly used in
17.1 Financial derivatives
A derivative is an instrument whose value is derived from the value of one or more basic variables called...
17.2 Types of financial derivatives
17.2 Types of financial derivatives
Due to complexity in nature, it is very difficult to classify the financial derivatives.
17.3 Forward contracts
Before discussing this concept lets discuss about spot market. In a spot market, what you generally do?
17.4 Futures
A future contract, unlike the privately-traded forward contract, is publicly traded.
17.5 Futures payoff
If on the expiry date, the actual price of Reliance Industries is Rs 1300, Mahesh can buy the shares at...
17.6 Key concepts
17.6 Key concepts
A futures spread is simply the simultaneous trading of one contract against another.
17.7 Stock index futures
Stock index futures have become the most popular financial derivative instruments and widely traded all...
17.8 Options
17.8 Options
Options, are another type of derivative instruments. Some people might say options are bit complex...
17.9 Participants in the options market
There are four types of participants in options markets depending on the position they ...
17.10 Key concepts
The writer of the Call Option is generally bearish, while the writer of the Put Option is...
17.11 Pay-offs of options
The optionality characteristic of options results in a non-linear payoff for options.