This book is intended for all students of MBA (Finance) of various universities and management institutes and the same can be used for CA, ICWA and ACS courses. The objectives of the book are to provide the student with a conceptual framework of financial decisions taken with regard to investment decisions in Derivative Market. This Derivative Market covers Equity, Foreign Exchange and Commodity products. The purpose is to make students familiar with the unique economic fundamentals and financial factors, which challenge the financial manager in the international context. The book covers the entire syllabus as approved by UGC on the subject of Financial Derivatives. With increasing prospects on capital market and earnings through hedging. Derivative instruments assume significance. This book could be the perfect guide for the beginners who wish to invest in F&O (Futures and Options) segment. Besides, this book is presented in simple mathematical terms, easily understandable to the average students.
This has the advantage of harmonising the finance function with the investment function of the financial manager on the one hand and integrating the domestic finance with international finance on the other. At the cost of repetition,each chapter is made self-contained and related to other chapters. But this is an added advantage to students who get a recap of some of the points of significance.
The material is kept as brief as possible, yet with a comprehensive coverage of all the modules as approved by various universities and autonomous institutions and in accordance with their syllabus.
This text book could be the perfect guide to the new beginners who want to know about Derivative Market in three classifications namely Equity Derivatives, Currency Derivatives and Commodity Derivatives.
1. Introduction to Financial Derivatives
2. Futures Trading
3. Options Trading Mechanism
4. Option Pricing
5. Swap Markets
6. Future Markets-Pricing and Trading Mechanism
7. Forwards Market
8. Derivatives in International Business
9. Regulatory Framework
10. Case Studies on Mismanagement of Derivatives Trading Practice