Managing Interest Rate Exposure
by 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 …
Tag: Portfolio Diversification
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 …
Basics of Risk and Return: Concept of Returns
Basics of Risk and Return: Concept of Returns
Concept of Risk and Return (Including Capital Asset Pricing Model)
Concept of Risk and Return (Including Capital Asset Pricing Model)
Swaps: Concept Characteristics and Types
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 …
Guidelines of SEBI and RBI
With the amendment in the definition of ”securities” under SC(R)A (to include derivative contracts in the definition of securities), derivatives trading takes place under the …
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