: Worlds Leading Management Portal. MBA | Classroom, Boardroom and Beyond

Go Back Forums > Projects HUB for Management Students ( MBA Projects and dissertations / BMS Projects / BBA Projects > Resolve Your Query - Get Help and discuss Projects > Financial Management ( FM )

Futures and Options

Futures and Options

Discuss Futures and Options within the Financial Management ( FM ) forums, part of the Resolve Your Query - Get Help and discuss Projects category; Derivatives occupy a very significant place in the field of finance and are virtually driving the global financial markets of ...



LinkBack Thread Tools Display Modes
Futures and Options
 (1 (permalink))
Sunanda K. Chavan
sunandaC has a spectacular aura aboutsunandaC has a spectacular aura aboutsunandaC has a spectacular aura about
Management Paradise Guru
Status: Offline
Posts: 6,680
Join Date: Jul 2010
Futures and Options - October 8th, 2010

Derivatives occupy a very significant place in the field of finance and are virtually driving the global financial markets of the day. Futures and options exchanges are an integral part of virtually all the advanced economies. Many more countries like India are in different stages of the process of introduction of such trading.


Futures have revolutionized the global commodities and financial markets ever since their advent. Futures are only a more developed form of forward trading. A futures contract involves honouring of a commitment between the buyer and the seller regarding delivery by the seller of a specified commodity or instrument after a specified period at a specified price.

The price of a futures contract is market related and is linked to the projected spot price of the underlying asset on the delivery date. The futures market provides economic and social benefits through their functions of risk management and price discovery.


Option contract helps the investor get returns on his investment while remaining fully insured against any adverse movement in stock prices. Option is a legal contract in which the writer of the contract grants to the buyer, the right to purchase from or sell to the writer a designated instrument or a scrip at a specified price within a specified period of time. The writer is legally obligated to perform according to the terms of the option but the buyer is under no obligation to exercise the option.

Broadly, options are of two types i.e. a call option and a put option. Price of an option depends on factors like stock price, expiration date, stock volatility, exercise price, etc. The complexities of the corporate risks and their management gives rise to many solutions through a series of innovative strategies in the form of combinations of options of different types. Most commonly used are spread strategies, straddle, strip, strap and condors.

Introduction of futures and options in India is the beginning of a new era. Both Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) have introduced trading in stock index futures and stock options. Trading in stock index futures commenced in June 2000, but trading in stock options began only in July 2001.

But however, derivatives trading in India has not picked up as expected. There are a lot of myths attached to it and the general lack of awareness among brokers and investors have led to very low volumes in trading.

However, these are early days and the experience of the world market has proved that futures and options are going to be the trading instruments in the future.

So come, Make Your Future With Options!!!
Friends: (0)
Reply With Quote
Your Friendly Helper
Rep Power: 10MBA Helper
Automatic Reply for links related to your post

Hello, I am your friendly Helper. Check the related links below which might be of your interest.
Not a Member Yet ?? Sign Up Now. Click Here and If you are looking for something? Search the Forums

Do you need help with your Research Report ? Ask for Help or Help Others and create your network. Give back to the community by sharing your knowledge in terms of notes, research reports, discussions, articles etc..
Help Yourself and Help Others
Ask us, we are here to help

Related to Futures and Options

Similar Threads

Thread Thread Starter Forum Replies Last Post
Futures and options Sunanda K. Chavan Financial Management ( FM ) 0 October 1st, 2010 04:06 PM
FUTURES AND OPTIONS Tushar Inani Financial Management 13 June 9th, 2010 01:00 PM
help on futures and options.. Manisha E Stock Markets Tips & Gyan !! 1 June 24th, 2009 01:36 PM
futures and options darshan_s1312 Financial Management 1 September 27th, 2008 02:22 PM


futures, options

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

Forgot Password?  New User?

» Recent Threads

Last post by Jiten Mazee
6 Hours Ago 11:08 PM
1 Replies
Last post by Jiten Mazee
8 Hours Ago 09:10 PM
1 Replies
Coaching classes...a...
Last post by Jiten Mazee
10 Hours Ago 07:29 PM
3 Replies
Pressure to Perform
Last post by Jiten Mazee
10 Hours Ago 07:22 PM
2 Replies
U.S. embassy in Kabul...
Last post by Maya Raichura
10 Hours Ago 07:20 PM
0 Replies

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

Management Paradise
About Us
Contact Us
Kartik Raichura
Terms & Conditions
Privacy Policy
Copyright © 2004 - 2016 Management Paradise. A Management Paradise Venture