Business Studies

Business Studies

Comparative Analysis of Futures and Options with respect to Banking Sector

Pages: 47  ,  Volume: 11  ,  Issue: 1 , August   2018
Received: 08 Sep 2018  ,  Published: 08 September 2018
Views: 31  ,  Download: 14

Authors

# Author Name
1 Ms Saba Fatima, Mrs. R.N Vardhini, Dr. A. Sita Madhavi

Abstract

Emergence for derivative products such as futures and options can be traced back to willingness of risk opposing agents in order to save them against uncertainties. Derivatives are instruments which derives their value from that of an underlying asset such as futures and options. .

This study has made a humble attempt to understand the profit and loss positions of investors. The study is carried out basing on the banking sectors giving special reference to ICICI Bank, State bank of India, Yes Bank. Prices in an organized derivatives market show an image of the perception of the market participants with regards to the future; they lead the price of underlying commodity to the perceived future level. Derivative markets have gained a lot of importance in terms of their vital role in the economy. The increasing investments of investors in stocks (domestic as well as overseas) have attracted attention of the researcher in this area. In cash market the profit or the loss of the investor depends on the market price of underlying asset.  The investor may either incur a huge profit or a limited downside. Derivatives are mostly used for the purpose of hedging. SEBI may revise some of their regulations like contract size in order to increase the derivatives market in India. In a nutshell it can be said that the study throws a light on the derivatives market in India.

Keywords

  • futures and options
  • banking
  • derivatives
  • profit and loss
  • moving average
  • Yes bank
  • ICICI
  • State Bank of India
  • References

    • Saba Fatima, Project Work Titled “Comparitive Analysis of Futures and Options   

    with respect to Banking sector”

    • Websites
    • List of text book:
    • John C Hull: Options, Futures and other derivatives, Pearson, 2012.
    • Prafulla Kumar Swain, Fundamentals of Financial Derivatives, HPH 2012