Natio Onal S Stock Excha Ange O F India A Limite ED: Derivat Tives Marke Et (Dealers) Module (D DMDM)

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NATIO

ONAL STOCK
S
EXCHA
ANGE OF INDIA
A LIMITE
ED
Depart
rtment : SB
BU-Educatio
on
NCFM
M COURS
SE OUTLINE

Derivattives Marke
et (Dealers) Module (D
DMDM)

Introduction
n to Derivatives
Types of De
erivative Conttracts, Historry of Financial Derivatives Markets, P
Participants in a Derivativve
Market, Economic Functtion of The D
Derivative Ma
arket .

ding Interestt Rates and Stock Indic


ces
Understand
Understandiing Interest rates,
r
Undersstanding the Stock Index, Economic S
Significance of Index
Movements,, Index Cons
struction Issu
ues, Desirable Attributes of an Index, Applications
s of Index.

Futures Contracts, Mec


chanism an d Pricing Fo
orward Conttracts
Limitations of forward markets,
m
Intro
oduction to Futures, Distin
nction betweeen Futures and
a Forwards
Contracts, Futures
ding Underly
F
Term
minology, Trad
ying vs. Trading Single S
Stock Futures
s, Futures
Payoffs, Priccing Futures, Pricing Stocck Futures.

Application
n of Futures Contracts
Understandiing Beta, Numerical illusttration of App
plications of Stock Futurees

Options Co
ontracts, Mechanism an
nd Applicatio
ons
Option Term
minology, Com
mparison bettween Future
es and Optio
ons, Options Payoffs, App
plication of
Options

O
Con
ntracts and G
Greek Letters
Pricing of Options
Variables aff
ffecting Optio
on Pricing, Th
he Black Sch
holes Merton
n Model for O
Option Pricing
g (BSO), The
e
Greeks

D
Contracts
Trading of Derivatives
Futures and Options Tra
ading System
m, The Trade
er Workstation, Futures a nd Options Market
M
Instruments,, Criteria for Stocks and IIndex Eligibillity for Tradin
ng, Charges

Clearing an
nd Settlemen
nt
Clearing Enttities, Clearin
ng Mechanissm, Settlement Procedure
e, Risk Manaagement, Ma
argining Systtem

Regulatory Framework
k
Securities Contracts
C
(Re
egulation) Acct, 1956, Securities and Exchange
E
Booard of India Act, 1992,
Regulation for
f Derivative
es Trading, A
Adjustments for Corporate Actions

Accounting
g for Derivattives
Accounting for
f futures, Accounting
A
fo
or options, Ta
axation of De
erivative Tra nsaction in Securities
S

Regd.Offfice:Exchan
ngePlaza,Ba
andraKurlaCComplex,Bandra(E),Mu
umbai400 051Page 1 of 1

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