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Chapter 1. Introduction of Sharekhan Limited

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Chapter 4. Hedging, Arbitrage and Speculation Strategies

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Chapter 5. Applicability of Derivative Instruments

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Chapter 6. Achievements in Futures and Options Segment

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Chapter 7. Conclusion

Chapter 8. Suggestions and Recommendations

Chapter 9. The Reference Material

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2c Limit priceD          @  "

2c Pro:D               



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2c Cli:Ô                
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Inquiry window

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Market spread/combination order entry

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Futures and options market instruments

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Contract specifications for stock options

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SEBI ADVISORY COMMITTEE ON DERIVATIVES

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(a) Investor Protection J              
   
 
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(b) Quality of markets      )D  º * 
   
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(c) Innovation 6            &      

          
            
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 Chapter 3

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INTRODUCTION TO FUTURES AND
OPTIONS

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FORWARD CONTRACT

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Limitations of forward markets
 
  
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FUTURE CONTRACT

   


                  
 
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ADVANTAGES OF FUTURE TRADING IN INDIA

1" High Leverage6   &   &       


           "               
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2. Profit in Both Bull & Bear Markets:    &   
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3" Lower Transaction Cost: J             

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4" High Liquidity: º          # & " "       
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USING FUTURES ON INDIVIDUAL SECURUTIES



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DIFFERENCES BETWEEN FORWARD AND FUTURE CONTRACT

 
       
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c Counter Party Risk:   
             
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c Liquidity:      #     
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c Squaring off: J  
         
      
   

  
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THEORETICAL WAY OF PRICING FUTURES

                
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FUTURES TERMINOLOGIES

2c Spot price  


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2c Futures price     
           
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2c Contract cycle:       
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2c Expiry date:                "    
  
  
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2c Contract size:                 
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2c Basis:           &        
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2c Cost of carry      
          
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2c Initial margin:               
                    
 
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2c Marking-to-market:       &          
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2c Maintenance margin:    

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OPTIONS
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OPTIONS TERMINOLOGIES

2c Index options                  "   


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2c Stock options           "¦ 
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2c Buyer of an option             


    
                
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2c Writer of an option  
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2c Call option J                   


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2c Put option J                  


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2c Option price¦    &


      
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2c Expiration date         



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2c Strike price        


 
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2c American optionsJ         
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2c European options          


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2c In-the-money option J / /   $º%       

           
        
   
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2c At-the-money optionJ/ /  $Jº%    



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2c Out-of-the-money option J / / /   $¦º%    


  
           
  
   
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2c Time value of an option            



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TYPES OF OPTIONS

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1. Call Options-c J           $  >  


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2.Put Options/ JD      $  >  


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THE OPTIONS GAME


Call Option Put Option

1.Option         


buyer or           
option holder        
   

2. Option [     [     


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option writer  $      $  
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LEVERAGE AND RISK

Options can provide leverage.           
                
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In-the-money, At-the-money, Out-of-the-money

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Striking the price

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2. At-the-money  D  #    D  #  


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3. Out-of-the-  D      D  


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2c A put option is in-the-money when the strike price of the option is


greater than the spot price of the underlying assetO    & 
    55,,/ /  
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2c Likewise, a put option is out-of-the-money when the strike price is


less than the spot price of underlying assetO     & 
      
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Options are said to be deep in-the-money (or deep out-of-the-money) if the


exercise price is at significant variance with the underlying asset price.

    
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Option Premium = Intrinsic Value + Time Value

FACTORS THAT AFFECT THE VALUE OF AN OPTION PREMIUM

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Quantifiable Factors:

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2.c        &

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4.c       C

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Non-Quantifiable Factors:

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2.c    <                  


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DIFFERENT PRICING MODELS FOR OPTIONS

                  
                           
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2c Black Scholes Model


            
     
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2c Binomial Model
               
   
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OPTIONS TRADING

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WHY TO USE OPTIONS?

   
  
  
    
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HOW OPTIONS WORKS?

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Date May 1 May 21 Expiry Date


Stock Price 94- 9-. 94+
Option Price 92"0! 9."+!
 
Contract Value 920! 9.+! 9,
Paper
9, 9!0, /920!
Gain/Loss

    
                 

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Exercising Versus Trading-Out

  
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Intrinsic Value and Time Value

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WHEN NOT TO BUY AN OPTION?


            


      
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2c J                   /   "


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2c J    
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2c J      


        
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2c J       


          
  
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HOW TO READ AN OPTION TABLE?

Column 1: Strike Price -              


 
          $    %    $   %    
        " ¦           
    9+"!,  9! $                   9+
  %"

Column 2: Expiry Date -  


           
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Column 3: Call or Put -    
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Column 5: Bid -       


     
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Column 6: Ask -    
   
    
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Column 7: Open Interest - ¦         
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PAYOFF FOR DERIVATIVES CONTRACT


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PAYOFF FOR FUTURES
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Payoff for buyer of futures: Long futures
c
     
         
  
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   "

Payoff for seller of futures: Short futures
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OPTIONS PAYOFF

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Payoff profile of buyer of asset: Long asset

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Payoff profile for seller of asset: Short asset

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Payoff profile le for buyer of call options: Long call

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             "   &  
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         "

Payoff profile for writer of call options: Short call

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                " 6          
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[                   "         
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Payoff profile for buyer of put options: Long put

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Payoff profile for writer of put options: Short put

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         "         &  
      
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                " 6          
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  &   
        
 "   
             &    
   /    
      "
























Chapter 4

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HEDGING, ARBITRAGE AND SPECULATION
STRATEGIES
HEDGING
[  
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HEDGING STRATEGIES WITH EXAMPLES

Hedging: Long security, short Nifty futures

            


    
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Methodology

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Hedging: Have portfolio, short Nifty futures


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Methodology

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Hedging: Have funds, buy Nifty futures

[          


        &
     
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Methodology

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ARBITRAGE

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ARBITRAGE STRATEGIES WITH EXAMPLES

Arbitrage: Have funds, lend them to the market.

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Arbitrage: Have securities, lend them to the market


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Methodology

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Example


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‰"5  &‰"+!&5,,"

Arbitrage: Overpriced futures: buy spot, sell futures

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Arbitrage: Underpriced futures: buy futures, sell spot

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SPECULATIONS
       "         
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º                     
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SPECULATION STRATEGIES WITH EXAMPLES

Speculation: Bullish Index, long nifty futures



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Methodology


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2"c J & Ñ   ‰"14,   

‰"01+&,,,"

5"c ¦05Ñ +,,0&  14-"2!"

2"c  Ñ    ‰"1.,"

5"c [     ‰"1.,"

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Speculation: Bearish index, short Nifty futures

   
        
 
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6        
  
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Example

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[     
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 Chapter 5

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 APPLICABILITY OF DERIVATIVE


INSTRUMENTS

RISK MANAGEMENT: CONCEPT AND DEFINATION


                
   
  
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WHAT IS RISK?

‰                 
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WHAT IS RISK MANAGEMENT?

‰        


           
  
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OBJECTIVES AND BENEFITS OF RISK MANAGEMENT

      ‰º   



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RISK MANAGEMENT PROCESS

                          


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RISK MANAGEMENT WITH FUTURES CONTRACT

J     / &           
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ADVANTAGES AND RISKS OF TRADING IN FUTURES OVER
CASH

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RISK MANAGEMENT WITH OPTIONS


‰     
   
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K   "K

2c Reduce risk:          $ 


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2c Increase risk:     


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3 
      

    
 
 
   
 
 

  
 
 

 
    
 

 

 




D       "

Short Call (Naked short call)

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INTRODUCTION TO OPTIONS STRATEGIES

Bullish Strategies

           


           
        
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    &            " º    
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Bearish Strategies

         


        
        

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Neutral or Non-Directional Strategies

                


       
 

        
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Bullish on Volatility

                     


   
                 
  

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Bearish on Volatility

                    


   
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OPTIONS TRADING STRATEGIES

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Long Calls

   &      & $  % "º$º  %&
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Short ('Naked') Calls

6        $  <


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Long Put

 
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Short Put

 
        
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'Bear spreads',   &        


 
       
  
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Current Strategies

1. LONG CALL

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Market Potential
View Profit Potential Loss
  8    

D         
   
   
     "                 
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Situation: ¦ 0    &    #    ‰ +!5     Ñ +4,
$   %     ‰ 05 $ %" ;             
   
      


Action60  05"   ‰05&,,,     
                  
               "

     
1-Nov ‰"+!5 0Ñ+4, ‰05&Ô ?05&,,,
20-Jan ‰"2,, ‘O 0Ñ $ %
O j5,
(300 - 260 x 1000 units = 40,000)
J 
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‰ 0.7 ¦  ?5,&,,,
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c
 Possible Outcomes at expiry
Share Price ¦ 
5,&,,,"Ô     

 
300      +4&,,,
Share price < ¦   
 "  ‰"05&,,,
260 $ %
Stock price >   ?   $   ?+4,=05%  
274 " " 
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J           &                
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2. LONG PUT

Market Potential
View Profit Potential Loss
  8    

J                 
 
     
   

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Situation:J   &    ‰+-,&    
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Action:  0   ¦  +4, D  ‰ .            ‰
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1-Aug ‰"+-, 0 ¦+4,‰.  ¦ 
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20-Oct ‰"+5, ‘O 0¦ "
+"  +,$+4,/+5, 0,,,?+,&,,,%
J 
       
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 ¦  +,&,,,
  
c
 Possible Outcomes at expiry
Share Price 240  +4,
    ‰+,
  
  ‰0+$+,/.%&      "
Share price 240- ‰       "
260

c
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Stock price > 240  +4,
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0+$+,/.%&      "


J           &                
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3. Short Call
   >Ô     

Market Potential
View Profit Potential Loss
    8  

      
  
     

        


   #         
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Situation:   0                ‰ +!5" J   
  0,,,,                      
  
     
        "

Action: Ñ+4,    05    0, 
$      0&,,,  %" [           #    ‰
0&5,&,,,          0,,,, +4,  
      "

     
1-Nov ‰"+!5  0,Ñ+4, A‰05
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20-Jan ‰"+!5 ¦   
 
J 
     ! "
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c
 Possible Outcomes at expiry
Share Price >   
       &
260    
 
      
  ‰+!5+-5$+4,=05%& 
-".7  2 "
Share price <      
 
240
c

5" Short Put
  D>Ô    D

Market Potential
View Profit Potential Loss
    8  

J        &


      
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Situation: J   


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Action:                        


     
  0,  !!,   ‰ 5,"          
5&,,&,,,"

 Possible Outcomes at expiry

c
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c
Share Price =/ >    <       
550
   
     "   
  "
Share price <    
       
 
550     &    !0&,,&,,,
$!!&,,&,,,/5&,,&,,,%"

           &     #     
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D "

!" Bull Call Spread

Market Potential
View Profit Potential Loss
     
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                '    K     K 
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KK    &       "

Situation6¦0   &     +,5"0 Ñ +,,
   ‰04  0Ñ ++, ‰."      
."   ‰+,.$+,,=.%"º  0+$++,/+,,/.%"

 Possible Outcomes at expiry
Share Price <   +,, ++,  
   
200    #      
     " ‰.

c
c
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c
Share price 200-  +,,      
220 #       +,,  
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++,    "
Stock price >          
220 ‰0+  ++," "      

    $+,/.%"
c
ë 6 
 

a 
      

a OO
  a    ^  a
    
 a 
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Advantages
D                         
# "
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4" Bear Put Spread

Market Potential
View Profit Potential Loss
     
c
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Expectation:   


     
     "


c
c
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c
Situation6      ++.";  0 ¦+5,
  ‰ 04     0  ++,   ‰ -" º     ‰ 00  
  ‰1"

 Possible Outcomes at expiry
Share Price >   
     
240  #            
" ‰1
Share price          
240-220     ‰"+5,"
Stock price        ‰00
220   '       
 ++,
      
Stock price <             
220     
&   00
$+5,/++,/1%
c


Advantages
D                        
# "
  "

-"Long Straddle

Market Potential
View Profit Potential Loss
º  8    


      
    /        

 $" "&     %&            " 
               
        &
 &      "                
  "            
"

Expectation: D        


   
        
      "
c
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Situation60 J+4, ‰+0 0 J+4,D‰


1"

8     ?+1,$   +4,=  2,%

     ?+2,$+4,/2,  %
D   &      &  ‰2,"

 Possible Outcomes at expiry
Share Price <      
       #   
260          +4,    
  
Share price > D  #       +4,
260 D    
J             
 ‰ +2,      ‰ +1,&
       &    &       007       
   "  &
 &              
    < <  
          "

Advantages
D             "
º        "

." Short Straddle

Market Potential
View Profit Potential Loss
º  8   8  

      


  <   /   &  
  &    "     
     
        &  &      "  
 &                         "  
           
"
Expectation:j     

      

   
     "

Action 0 J +4, ‰+0& 0 J +4,‰1"
8     ?+1,$   +4,=  2,%
c
c
c
cccccccccccccccccccccccccccccccccccccccccccccccc
c

     ?+2,$+4,/2,  %
º  2,&    "

 Possible Outcomes at expiry
Share Price 260 º       '  
   
 "

 &   &           &  
              
                 "

J   &                   
   "        &            
 
    

     +5,     
  
 "Ô   
           
  +., "    
          
         "

   &             
     

    
     
      
 
       &  &‰+1,    
     ‰+2,"

Advantages
j           "
  
    "

9.Long Strangle

Market Potential
View Profit Potential Loss
º  8    
c
      
    /        

$" "&   %&         "
         / / /       
  
         "                
  
                       

"
c
c
c
cccccccccccccccccccccccccccccccccccccccccccccccc
c

Situation:        +5-"0 ¦+4,
 ‰0+& 0¦+5,‰0,"
8     ?+.+$   +4,=  ++%

     ?+0.$+5,/++  %

 Possible Outcomes at expiry
Share Price > D     #    
260    
Share price         "º 
240-260  ++  "
Stock price < D      "
240




Advantages
D             "
        "

0,"Short Strangle

Market Potential
View Profit Potential Loss
º    8  
c
      
  <   /   &  
  &    "    
   /   /       
        
   "                       "  
           
"

Situation:       ‰+5-   0¦ 


+4, ‰0+  0¦ +5,‰0,"
8     ?+.+$   +4,=  ++%

     ?+0.$+5,/++  %
;   ‰++    "

c
c
c
cccccccccccccccccccccccccccccccccccccccccccccccc
c
 Possible Outcomes at expiry
Share Price >           
260   +.+"$+4,=++%"
Share price     
   
 "
240-260  ++   
Stock price <    "      
240   +0."


Advantages
j           "
  
    "




Disadvantages
   
  º &    #     
              
            
   "

00"Butterfly

Market Potential
View Profit Potential Loss
º    8  

       
       &   
    " 6 
      &         
  
              
 " 
 &
     &       
    "

Situation:       +5,";    Ñ++, 


‰"5,& 
Ñ+5, ‰"2,&    Ñ+4, +!"
 K     "K    
        "
8     ?+!!

     ?++!
c
c
c
cccccccccccccccccccccccccccccccccccccccccccccccc
c
   +5,/++,/!?‰"0!

 Possible Outcomes at expiry J " 
Share Price >   ‰"!" "   
260 D   

Stock price 240    
    "   

Disadvantages
Ô        # "
‰ #        "

12.Collar
J                     &
     
       "   
                    " j   &   
          / /  
          &
       "

                &
    
         "   
 &    
#        
    

 0,,   
    "
Expectation: J   
             ' 
           &  
         
  
     "J   &   
    
                     / / /  
  
 &          
Situation:        0,,       "  ‰"+5,  
 
   
    
 
     "; 
 
        º++,0,     º+4, 
0!"  ‰"!
º  6  +4,"
º  6    
++,"

 Possible Outcomes at expiry
Share Price           
@220  "

c
c
c
cccccccccccccccccccccccccccccccccccccccccccccccc
c
Stock price   
   #    
" "
@240 ‰"!
Stock price            
@260      
 "
J " 
               
        
      
  "
# " 
              
           "

13. Condor Spread
 Ô             " 
 Ô  &  
     /Ô Ô     /D
Ô          "  &  
 
                   "
    
      $   %&  
      
    "J     
   
      
       "
Expectation:           
    
        <   
 " 
    &     &  
   
  "
  6     "  ‰"+5,    
     "       &

J  
 0+5, A+,
 0+4, A0!
0++, A2,  0+.,A0,       
  "
º  6     
+5, +4,
º  6      +., 
++,

 Possible Outcomes at expiry
Share Price   
   ‰"!$  %
<220

c
c
c
cccccccccccccccccccccccccccccccccccccccccccccccc
c
Stock price   
   #  +,/!?‰"0!
240-260
Stock   
  ‰"!$  %
price>260

J " 6
       
    "
            
    "
                      
       "

# " 6
Ô                  &
            
  "

14. Calendar Spread


Ô                   
     
 "                      
                 &        

  
"                    
    
     
                   

         "

Expectation:J             $% 


            $%         " Ô   
 
  
       
  

   "

Situation:¦0º      "   ‰"+..  º


+.,Ô   A‰"+5  ÑÔ   A‰"2,

Action:
 0  "º+., A‰"+5"
0  "Ñ+., A‰"2,"
  ‰"4

 Possible Outcomes at expiry

c
c
c
cccccccccccccccccccccccccccccccccccccccccccccccc
c
Share Price  º+.,   
    
<280     0Ñ+.,     
4"
Stock price º       ' " º
@280 +.,   
   Ñ+., 

  0      "
Stock price   
    &   
>280     Ñ+.,     
"

J                     
    
          " J   &    º  
 
      Ñ            
 
  
   "   
       "
Advantages
  &" "  "


Disadvantages
  "
D          Oc

c


c
c
c
cccccccccccccccccccccccccccccccccccccccccccccccc
c

c












 Chapter 6

c
c
c
cccccccccccccccccccccccccccccccccccccccccccccccc
c

    cc
 c c
c  c
c


ACHIEVEMENTS IN FUTURE AND
OPTIONS SEGMENT

c
c
c
cccccccccccccccccccccccccccccccccccccccccccccccc
c

c
c
c
cccccccccccccccccccccccccccccccccccccccccccccccc
c

COMPARATIVE ANALYSIS OF F&O SEGMENT AND


CASH SEGMENT
c
c
c
cccccccccccccccccccccccccccccccccccccccccccccccc
c

TOP 5 TRADED SYMBOL IN THE FUTURES SEGMENT


FOR THE MONTH OF MAY 2008

c
c
c
cccccccccccccccccccccccccccccccccccccccccccccccc
c

TOP 5 TRADED SYMBOL IN THE OPTIONS SEGMENT


FOR THE MONTH OF MAY 2008

c
c
c
cccccccccccccccccccccccccccccccccccccccccccccccc
c

c
c
c
cccccccccccccccccccccccccccccccccccccccccccccccc
c

 Chapter 7

Ôc
c
c
c


CONCLUSION

c
c
c
cccccccccccccccccccccccccccccccccccccccccccccccc
c

    


     
    "º 
     
       
 #  
 "       
 
         
   
                
     &        
"

                   &
 
  ¦   &        
              " "   
    "

    &              
      
'    '         
         

 &                          
           &            
  º "

c
c
c
c
c
c
cccccccccccccccccccccccccccccccccccccccccccccccc
c

c
c
 Chapter 8

 c c


!   cc
c





SUGGESTIONS AND RECOMMENDATIONS

c
c
c
cccccccccccccccccccccccccccccccccccccccccccccccc
c

c
 c
c
cccccccccccccccccccccccccccccccccccccccccccccccc
c

Chapter 9

3 c!    cc
"   c








THE REFERENCE MATERIALS

GLOSSARY

c
 c
c
cccccccccccccccccccccccccccccccccccccccccccccccc
c
ADJUSTED STRIKE PRICE:      &      
                  "       
              "

AMERICAN STYLE OPTION: J           


           "

ARBITRAGE: J     #            


         #  
    

          "

ASSIGNMENT:          Ô           


  
    
          
               " J        
           Ô  "  
        
                 C 

                           


   "

AT PRICE:6            & KJ
D K$J"D%        "  

                &      
K  K    >J&  "

AT-THE-MONEY (ATM): J / /       


       
#  $ & &    %        "

AVERAGING DOWN:         


 
             "

BACK MONTH: J         /   
            "J   J‰
º¦["

BEAR, BEARISH: J      


    
     
   & " "        
   "  
    
  "

BINOMIAL PRICING MODEL: º             


 
              

c
c
c
cccccccccccccccccccccccccccccccccccccccccccccccc
c
        /               
  & Ô¦/‰¦/‰8 "

BLACK-SCHOLES PRICING MODEL: J            


          /             
 
    &    &     &   &     &
  "
      º  "

BOX SPREAD: J  /                   


        
                 
 "  
 &          
          "

BREAK-EVEN POINT: J          


   
        "

BULL, BULLISH: J       


   
     
 

CANCELED ORDER: J                


 "  &        
    "$J          
              
 
%"J #           "

CARRYING COST:          


   
    "

CASH SETTLEMENT:      


          
          ‰     

   / /                 
 "

CLOSING TRANSACTION:                  


      &         "

COLLATERAL:        #         


  
                       
  "Ô   $  % #    
  /  
   
    "

c
c
c
cccccccccccccccccccccccccccccccccccccccccccccccc
c
COMMISSION:           
    &  &    "

COMMODITY: J 
             
          "

CONTRACT SIZE:                 


 "       ' 0,,   "
     '     "     
 '    #       " 
      "

COST OF CARRY:             
 "          $   %&   
                        
$   %"

DAY ORDER: J            &       


 &               
    "  
              "

DAY TRADE: J            "

DEBIT:               " J   


    
       "

DIRECTIONAL TRADE: J                 


    "

DISCOUNT: J                  


 
  "

DYNAMIC HEDGING: J  /             


                    "  
               <       # 
  "

EARLY EXERCISE: J   J /   


 
 
            "

c
c
c
cccccccccccccccccccccccccccccccccccccccccccccccc
c
EQUITY OPTION: J                " J  

   "

EUROPEAN STYLE OPTION: J            


      "

EX-DIVIDEND DATE:      


    
            "¦  /     &   
<                      
          /     
            
 "

EXCHANGE TRADED:          &   


         '   "

EXERCISE:  
         
               "       
     
              
             "       
    
                       
      "

EXOTIC OPTIONS: (   / /    


        
 &       # "           
$ 
   
J     &     
      %   /    $
            
 <                       
    %"

FILL: 6         &   "

FILL OR KILL (FOK) ORDER:   


   $  %
   
     &  
        "
      / /   $J¦%  &     K K     
                 " 8    J¦
 & ¦3      jÔ  "

FLEXIBLE EXCHANGE OPTIONS (FLEX): Ô '  #  # 


 "       &
   &         &
     &    &    &      

c
c
c
cccccccccccccccccccccccccccccccccccccccccccccccc
c
   " Ô         ' &
    
   "

FRONT MONTH:                /  


           &  # 
         
            "J  

 J‰º¦["

FRONTRUNNING: J                



     
      "

FOLLOW-UP ACTION:                  


  #          "         &  
                         
     "

GUTS:     $   %    / /       / /  


" J       
          / /  
   / / /   "       
  

 &       / /   "     
 "

HAIRCUT:        #               
  # #      #    "j   &  
           
 #      "

HEDGEJ     


         
  "    
                
        "

IMMEDIATE-OR-CANCEL (IOC) ORDER: J         


                    
 
        "

ILLIQUID:J #         


   
                        "
    
     >    
"

c
c
c
cccccccccccccccccccccccccccccccccccccccccccccccc
c
INDEX:                      " " "
 > Dԏ;"

INDEX OPTION: J              "     
 /  "

IN-THE-MONEY (ITM):    


             
                  &          
           "   
 &       
     '  "

INTRINSIC VALUE: J           


    
             $" "&   

/ /  %"     / / /    


'  "

LEAPS:   /  # J    &    


   /  
 "Ô  
    +/! "¦  0,7 
#    JD" Ô  & # JD   
       &


Ñ  "      JD"

LEGGING:                      


           $K K%    "      '   K  
 K        
             
   &              
       
    "

LEVERAGE: J         



    
  " 8  
         <     &  
        " ¦           
        
    "

MARGIN:   # #       " 
      
        
    "

MARKET BASKET: J        


         
        
 "

MARK TO MARKET:           "

c
c
c
cccccccccccccccccccccccccccccccccccccccccccccccc
c
MARKET MAKER: J         
        #    

   $    J%   #  / 
                  /       
 "

NAKED: J    


            
 
                  
                  "        
       "

NET MARGIN REQUIREMENT:   #  #         
                       
 "

NEUTRAL: J                     


  
          "

ONE-CANCELS-THE-OTHER (OCO) ORDER:     


 
 
          &
             
              "Ô   
  jÔ  "

OPTION CHAIN: J             "

OPTIONS CLEARING CORPORATION (OCC): J    


    
          C ¦ÔÔ      

     "¦ÔÔ        "

OUT-OF-THE-MONEY (OTM): J / / /      


   
              "
 
                       
   &             "
J / / /       &     "

OVERVALUED: J                    
             "            
      &                   
/     "

c
c
c
cccccccccccccccccccccccccccccccccccccccccccccccc
c
PARITY: J                 
      
     / /    "6     
  &     "

PUT/CALL RATIO:                "  
         5/          (¦8º    5/ 
      (¦8º"

RATIO CALENDAR COMBINATION: J           


                   
 #  #      
          
   
 "

REALIZED GAINS AND LOSSES:           


 
        
    "

ROLLOVER: º                


   " J           &  
   
   
           "
                "

SCALPER: J       


         
 &        &                
   "‰         $ 0,   
 2 %      "

SEC:      Ô  " Ô 8  


             "

SECTOR INDICES:          


 
  &       '  "

SETTLEMENT PRICE:                   " 


         ¦  Ô   Ô          
        #&    #  &      
  " / / "

STRIKE PRICE:   


         
        "                   
  "J  
      "

c
c
c
cccccccccccccccccccccccccccccccccccccccccccccccc
c
SYNTHETIC: J          " 
          "    
                          
   "            
       "  &      
   &    &        "

TECHNICAL ANALYSIS: º                


         $    %        &
     &     &                
 &      "

TICK:          


         "
   &             
 "

TIME DECAY:         


             
K  K   
    "  #   "

TRADING PIT: J                


             "

TRANSACTION COSTS: J      


       
     &           &      
 >   &    "

UNCOVERED: J                 '  


        "   J3"

UNREALIZED GAIN OR LOSS:       


         
             " ¦          & 
    '    "

VOLATILITY: (             


    
  &          &          " J 

      
  
         
    "(    #  J"

VOLATILITY TRADE: J                 


   "

c
 c
c
cccccccccccccccccccccccccccccccccccccccccccccccc
c
WASH SALE: 6           
 2,    
                    "      ‰   
    
    
    "

WASTING ASSET:J  


   &    
   
             "













BIBLIOGRAPHY

Books:

2c   (   ‰º   J"  


 6"º &щ"&D   ¦   8 D "

2c       J Ô    j         


Ñ  " º    (  3"  & D    D  [  
 "

c
 c
c
cccccccccccccccccccccccccccccccccccccccccccccccc
c
Newspapers:-

2c     

2c     

Internet:

2c

"    " 

2c

"    " c

2c

"   " c

2c

"  " c

2c

" " "c

2c

"  " 

2c

"   " 

c
c
c
c
c
cccccccccccccccccccccccccccccccccccccccccccccccc
c

cc

c
c
c