Pricing of Futures Contract, Currency Futures, Hedging In Currency Futures

Pricing Of Futures Contract The value of a futures contract is derived from the cash value of the underlying asset. While a futures contract may …

Index Futures in The Stock Market

A contract for stock index futures is based on the level of a particular stock index such as the S&P 500 or the Dow Jones Industrial Average. …

Financial Swaps

In finance, a SWAP is a derivative in which two counterparties agree to exchange one stream of cash flow against another stream. These streams are called the …

Managing Interest Rate Exposure

Interest rate risk is the risk where changes in market interest rates might adversely affect a bank’s financial condition.  The management of Interest Rate Risk …

Currency Swaps, Interest Rate Futures

Currency Swaps A currency swap is a “contract to exchange at an agreed future date principal amounts in two different currencies at a conversion rate agreed …

Introduction to Derivatives Market: Definition

A derivative is a financial instrument whose value depends on underlying assets. The underlying assets could be prices of traded securities of gold, copper, aluminum …

Evolution and features of Derivatives

Nature of Financial Derivatives: Financial derivatives refer to those financial products or instruments which derive their prices from the prices of their underlying assets. The …

Forward, Futures and Options Market

Forward Market A forward market is an over-the-counter marketplace that sets the price of a financial instrument or asset for future delivery. Forward markets are …

Alternative Strategies of Marketable Securities, Choice of Securities

Alternative Strategies of Marketable Securities Marketable securities are investments that can easily be bought, sold or traded on public exchanges. The high liquidity of marketable …

Concept of Risk and Return (Including Capital Asset Pricing Model)

Concept of Risk and Return (Including Capital Asset Pricing Model)

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