FULLY SOLVED BOOK LASY 5 YEARS PAPERS SOLVED PLUS GUESS

UNIT I INTRODUCTION 9
Derivatives – Definition – Types – Forward Contracts – Futures Contracts – Options – Swaps –
Differences between Cash and Future Markets – Types of Traders – OTC and Exchange Traded
Securities – Types of Settlement – Uses and Advantages of Derivatives – Risks in Derivatives.
UNIT II FUTURES CONTRACT 9
Specifications of Futures Contract - Margin Requirements – Marking to Market – Hedging uses Futures
– Types of Futures Contracts – Securities, Stock Index Futures, Currencies and Commodities –
Delivery Options – Relationship between Future Prices, Forward Prices and Spot Prices.
UNIT III OPTIONS 9
Definition – Exchange Traded Options, OTC Options – Specifications of Options – Call and Put
Options – American and European Options – Intrinsic Value and Time Value of Options – Option
payoff, options on Securities, Stock Indices, Currencies and Futures – Options pricing models –
Differences between future and Option contracts.
UNIT IV SWAPS 9
Definition of SWAP – Interest Rate SWAP – Currency SWAP – Role of Financial Intermediary –
Warehousing – Valuation of Interest rate SWAPs and Currency SWAPs Bonds and FRNs – Credit
Risk.
UNIT V DERIVATIVES IN INDIA 9
Evolution of Derivatives Market in India – Regulations - Framework – Exchange Trading in Derivatives
– Commodity Futures – Contract Terminology and Specifications for Stock Options and Index Options
in NSE – Contract Terminology and specifications for stock futures and Index futures in NSE –
Contract Terminology and Specifications for Interest Rate Derivatives.