Go Back   ManagementParadise.com | Management & Business Education Learning Platform Upload / Download Banking and Insurance Projects and Notes > Environment and Management of Financial services

HOW DERIVATIVES WORKS

Discuss HOW DERIVATIVES WORKS within the Environment and Management of Financial services forums, part of the Upload / Download Banking and Insurance Projects and Notes category; A SHORT STORY ABOUT DERIVATIVES: A Farmer A farmer will be ready with his wheat crop for selling in the ...

Reply

 

Thread Tools Display Modes
HOW DERIVATIVES WORKS
Old
 (1 (permalink))
Abhijeet S
abhishreshthaa is a splendid one to beholdabhishreshthaa is a splendid one to beholdabhishreshthaa is a splendid one to beholdabhishreshthaa is a splendid one to beholdabhishreshthaa is a splendid one to beholdabhishreshthaa is a splendid one to beholdabhishreshthaa is a splendid one to behold
 
abhishreshthaa
Operations Manager at Management Paradise
Management Paradise Guru
 
Status: Offline
Posts: 7,045
Join Date: May 2010
HOW DERIVATIVES WORKS - September 2nd, 2010

A SHORT STORY ABOUT DERIVATIVES:

A Farmer
  • A farmer will be ready with his wheat crop for selling in the market in four months but he does not want to guess what price he will receive then.

  • He wants to avoid this uncertainty and wants to know today, so that he can plan for tomorrow

An Investor
  • An investor wants to purchase a diversified portfolio of shares with cash he will receive three months hence.

  • But he wants to buy his portfolio at today's price and does not want to guess what will be the price of shares when he is ready with cash.

AND DERIVATIVES IS THE ANSWER FOR THIS!!!

WHAT ARE DERIVATIVES:
  • A Derivative is a Instrument Whose Value Is Derived From the Value of One or More Underlying variables Which Can Be Commodities, Precious Metals, Currency, Bonds, Stocks, Stock Indices Etc.

  • Are tradable “ Contracts "

  • Derived from a security but are not the security themselves

  • Cash settled or delivery of underlying

  • Exchange Traded or OTC.

OBJECTIVES OF DERIVATIVES:
  • Hedging/ Transfer of Risk

  • Better Price Discovery

  • Betting on the Future
Advertisements



Help Others > Network > Grow


Work with us part time/full time as forum moderator. Email us your resume on careers @ managementparadise.com PLS PRESS THANKS BUTTON IF U LIKED MY POST.


To view links or images in signatures your post count must be 0 or greater. You currently have 0 posts.
Friends: (0)
Reply With Quote
Re: HOW DERIVATIVES WORKS
Old
 (2 (permalink))
Jitendra Mazee
jiten005 is an unknown quantity at this point
 
jiten005
Management Paradise Guru
Status: Offline
Posts: 5,316
Join Date: Jan 2018
Re: HOW DERIVATIVES WORKS - February 7th, 2018

Quote:
Originally Posted by abhishreshthaa View Post
A SHORT STORY ABOUT DERIVATIVES:

A Farmer
  • A farmer will be ready with his wheat crop for selling in the market in four months but he does not want to guess what price he will receive then.

  • He wants to avoid this uncertainty and wants to know today, so that he can plan for tomorrow

An Investor
  • An investor wants to purchase a diversified portfolio of shares with cash he will receive three months hence.

  • But he wants to buy his portfolio at today's price and does not want to guess what will be the price of shares when he is ready with cash.

AND DERIVATIVES IS THE ANSWER FOR THIS!!!

WHAT ARE DERIVATIVES:
  • A Derivative is a Instrument Whose Value Is Derived From the Value of One or More Underlying variables Which Can Be Commodities, Precious Metals, Currency, Bonds, Stocks, Stock Indices Etc.

  • Are tradable “ Contracts "

  • Derived from a security but are not the security themselves

  • Cash settled or delivery of underlying

  • Exchange Traded or OTC.

OBJECTIVES OF DERIVATIVES:
  • Hedging/ Transfer of Risk

  • Better Price Discovery

  • Betting on the Future
Hey friend, its nice to see that you are providing such a nice information on HOW DERIVATIVES WORKS. Well, i have also got a document and willing to upload here. So please download my presentation and check it, i hope you and other people would like it.
Attached Files
File Type: pdf HOW DERIVATIVES WORKS.pdf (426.7 KB, 0 views)
Friends: (0)
Reply With Quote
Reply

Bookmarks

Tags
derivatives, works
Related to HOW DERIVATIVES WORKS
 

Similar Threads

Thread Thread Starter Forum Replies Last Post
Works Manager / General Manager (Works), 8-13 years exp, Ahmedabad Maya Raichura JOB OFFERS , Recruitments , Placements !! 0 July 21st, 2009 08:30 PM
what really works Abhishek Vaish Introduce Yourself !! 1 September 6th, 2008 05:07 PM
THIS IS HOW THE MARRIAGE WORKS! niceguy_jay LaUghTeR AccEleRatED , Just CHILL !! 0 February 14th, 2008 07:03 PM
How the Economy as a whole works? ross18 Articles !! 1 December 17th, 2007 10:47 PM
Tax Saving ...how it works... Vishal Bhawsinghka Articles !! 1 February 27th, 2006 01:21 PM
 


Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Trackbacks are On
Pingbacks are On
Refbacks are Off


ManagementParadise.com is not responsible for the views and opinion of the posters. The posters and only posters shall be liable for any copyright infringement.



Search Engine Optimization by vBSEO ©2011, Crawlability, Inc.