Analytical Study of Derivatives Market in India
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INTERIM REPORT ON
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ANALYTICAL STUDY OF DERIVATIVES MARKET
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(Shweta Malage)
ABOUT DERIVATIVES: * According to dictionary, derivative means ‘something which is derived from another source’. * Therefore, derivative is not primary, and hence not independent. * In financial terms, derivative is a product whose value is derived from the value of one or more basic variables. These basic variables are called bases, which may be value of underlying asset, a reference rate etc. the underlying asset can be equity, foreign exchange, commodity or any asset. * Derivatives were introduced to cover risk that people used to face due to change in economic conditions and the fluctuations in prices of the underlying assets.
OBJECTIVES OF THE STUDY
* To understand the concept of the Financial Derivatives such as Futures and Options. * To examine the advantage and the disadvantages of different strategies along with situations. * To study the different ways of buying and selling of Options.
SCOPE OF THE STUDY
The study is limited to “Derivatives” with special reference to Futures in the Indian context and India Info line has been taken as representative sample for the study.
The study cannot be said as totally perfect, any alteration may come. The study has only made humble attempt at evaluating Derivatives Markets only in Indian Context. The study is not based on the International perspective of the Derivatives Markets.
RESEARCH METHODOLOGY:
The type of research adopted is descriptive in nature and the data collected for this study is the secondary data i.e. from Newspapers, Magazines and Internet.
LIMITATIONS
* The study was conducted in Pune only. * As the time was limited, study was confined to conceptual understanding of Derivatives market in
INTERIM REPORT ON
-------------------------------------------------
ANALYTICAL STUDY OF DERIVATIVES MARKET
-------------------------------------------------
(Shweta Malage)
ABOUT DERIVATIVES: * According to dictionary, derivative means ‘something which is derived from another source’. * Therefore, derivative is not primary, and hence not independent. * In financial terms, derivative is a product whose value is derived from the value of one or more basic variables. These basic variables are called bases, which may be value of underlying asset, a reference rate etc. the underlying asset can be equity, foreign exchange, commodity or any asset. * Derivatives were introduced to cover risk that people used to face due to change in economic conditions and the fluctuations in prices of the underlying assets.
OBJECTIVES OF THE STUDY
* To understand the concept of the Financial Derivatives such as Futures and Options. * To examine the advantage and the disadvantages of different strategies along with situations. * To study the different ways of buying and selling of Options.
SCOPE OF THE STUDY
The study is limited to “Derivatives” with special reference to Futures in the Indian context and India Info line has been taken as representative sample for the study.
The study cannot be said as totally perfect, any alteration may come. The study has only made humble attempt at evaluating Derivatives Markets only in Indian Context. The study is not based on the International perspective of the Derivatives Markets.
RESEARCH METHODOLOGY:
The type of research adopted is descriptive in nature and the data collected for this study is the secondary data i.e. from Newspapers, Magazines and Internet.
LIMITATIONS
* The study was conducted in Pune only. * As the time was limited, study was confined to conceptual understanding of Derivatives market in