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Globalization and India
Globalization has significantly influenced India's socio-economic landscape, ushering in a period...
Socio-Cultural, Political & Legal Implications
Globalisation affects nations and societies in numerous ways, shaping socio-cultural norms, polit...
Advantages and Disadvantages
Globalisation has significantly shaped the world economy, culture, and political landscapes. Belo...
Black Scholes Option Pricing Model
Introduced in 1973, the Black-Scholes model provides a closed-form solution for pricing European-...
Binomial Option Pricing Model
1. Binomial Option Pricing Model The binomial model provides a discrete-time framework for option...
Weather and Energy Derivatives
Weather derivatives provide payouts based on weather-related events, such as temperature, rainfal...
Warrants and Exotic Options
Warrants are financial instruments granting the holder the right to purchase a company's stock at...
Uses of Swaps in Risk Management
Swaps are versatile tools in risk management strategies: Interest Rate Risk: Lock in fixed rate...
Economic Motives for Swaps
The primary economic motives for engaging in swaps include: Risk Management: Hedge against adve...
Interest Rate and Currency Swaps
Swaps Swaps are contractual agreements between two parties to exchange cash flows or financial in...
Types of Derivatives
1. Forwards Contracts A forward contract is a customized agreement between two parties to buy or...
Participants and Functions
Financial derivatives are powerful instruments that play a vital role in the global financial sys...
Forward vs Futures
Aspect Forwards Contracts Futures Contracts Trading Venue Over-the-counter (OTC) market, p...
Types and Styles of Options
By Underlying Asset: Equity Options: Options on individual stocks. Index Options: Options on s...
Concept of Options
Options are financial derivatives that grant the holder the right, but not the obligation, to bu...
Margin Account Operation
In futures trading, margin accounts are used to manage credit risk between parties. They ensure t...
Basis Normal Backwardation and Cantango
Contango A market condition where futures prices are higher than the current spot price. This sit...
Expectation Approach
The Expectations Approach posits that the futures price reflects the market's consensus of the ex...
Cost of Carry Model
The Cost of Carry Model determines the futures or forward price of an asset by considering the co...
Combinations
Combinations involve holding positions in both call and put options simultaneously. 1. Straddle ...