KMBNFM03 FINANCIAL DERIVATIVESÂ UNIT 1 Introduction Introduction to derivatives Market definitions Evolution and feature of Derivatives, Types of Derivatives Forward, Features and Options Market Forward Market Transactions, Forward Contracts Forward Market Transactions, Forward Contracts, Forward Market in India,Hedging with Forwards UNIT 2 Forward and Future Contracts Forward Contract, Feature of Forward Contract Future Contract, Types , Function Distinction between Futures and Forward Pricing of Futures Contract, Currency futures, Hedging in Currency futures Speculations and Arbitrage in Currency futures, Cost of Carry Model Applications of Market index, Index Futures in the Stock Market, Indian Derivatives Market UNIT 3 OPTIONS Introduction to Options, Hedging with currency Options Speculations and Arbitrage with options, Pricing Options, General principles of pricing: Black Scholes option pricing Model, Index options, Hedging with index options Speculations and Arbitrage with index options, Index options Market in India stock Market Use of different options Strategies to mitigate the risk UNIT 4 Commodity Market Introduction of Commodity Market , History Major Commodity Traded in derivatives exchange in India Participants in Commodity Derivative Market Commodity Market Indice, Commodity Futures Uses of Commodity derivatives: Hedging, Speculations, and Arbitrage UNIT 5 Swap and other derivatives Financial Swaps Types of Swaps, Derivatives Vs Swaps Managing Interest rate Exposure Currency Swaps Interest rate futures Forward Rate Agreement
