A preliminary glance at how derivative contracts are priced. Firstly, it is introduced by the concept of arbitrage.
Arbitrage occurs when equivalent assets or combinations...
The derivative market has an important role to play in the economic development of a country.
Changes in exchange rates, interest rates, and stock prices...
The risk involved in financial derivatives:
1) Insolvency Risk: The insolvency risk is the probability, for the issuer of the transferable security, that the debtor...
Basically following financial derivative are available for trading in India:
1) Forwards: A forward contract is a simple customized contract between the two parties to...
The following are the main features of financial derivatives:
1) The transactions in derivatives are separate from the transactions in the underlying securities.
2) The financial...
Financial derivatives are financial instruments that are linked to a specific financial instrument or indicator, and through which specific financial risks can be traded...