Introduction To Derivatives In Capital Market
Introduction To Derivatives In Capital Market · wHAT IS dERIVATIVEs? The term ‘ Derivatives’ stands for a contract whose price is derived from or is dependent upon an underlying asset. The underlying asset could be a financial asset such as currency, stock and market index, an interest bearing security or a physical commodity. · WHAT IS PREMIUM? a. Premium is always Payed or Receive. b. Premium paid by buyer and received by seller. c. Premium is transferred from one party to another party it is known as premium exchange or premium shift. s · TYPES OF DERIVATIVE CONTRACTS Derivatives comprise two basic contracts namely Future or Options . · FUTURES CONTRACTS : A future...
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