Karishma Ma'an

DERIVATLVEf (DRM)

hyia divy i d by the

buya, where nnly prht is daken davetty
the elleLy.

If one ente into contadto buy gald

after
Can
the
gald ohly take the
gold atey

ipst phu lcurtnt pies of tha wndalying rt)

ghike price (x) (Exerçe pie)

rlayin
Lang fatune
thot futes
(thot alling is to gell he fost huyiny
"Broky/Agn of Deriyativel:
MSmhert only huy 4jel)
mmewbeas[nly help in ceainy
3)Tradin Cum cearing mmembasy (Both)
 Page No

Date

FuTUREs 23, | 29

peson hice

rote
MIBOR- Mumbo

Cantags

Ractandot

eontango
Convergni

Horagettaeker
Halding
CasE
nuTanu choanged
Jttet
 S- gpot Pie
c- ost piu
3
f- fute prie Date

cast i
Anakg, the tsg
72o00, n inurone harge
otVilY
Soln
= 30000 +2o00+l00

aa. The pst piu of gold ie

ir A6o900 foy
rnt i! 5000 p-a. 6000for 6 moh
calulat piu for 3 manths geld
Contact
Soln:

60000 3000

Iz |2/ (s1)t 3manthe

20004l00
 Pege No,
Dete

i) iel2l p:o campounded montey

F= |5k + 2k + |k

L8k o|2

ezexpondental value
f= (s 1= Yat o intreit
In come Conponsnt
Y= Ih otne
f- (s-D) t

fegl- Type 2H828

butten 2 he.

Minus om the an ey
 Dale

1=47:3imonh
- 1Sooo || 035 624)
=|8, 64|-2

f: (s-Y)ert
(2lo

-16sool:o6184)
1#20

.3. Calulat the theoritial hiu a 4 tmontn futu

contract asth a a diidend
in con of 2000 int. rete
’Boln:
30000 - 20oo e

= 24524: 21
 (but nt
obligato
oY not buy.
Cal nght to buy
(
oy nol gel(
Dete

ight to gell
is

Pay-offr

Buy (upside t prem. pay)

(Holdey)- He aill buy
where iH chaper ik
holder ii buying th deition making ighle
Here the the contat.
he is buytr under
(alday't pindai
t Phorf- Call : torte tontrat but fror tifftrzi
et (Do usnid Pyen.pecind) po

Hen te helday i buying the decision meking ight

al arl al he i a buyer undy h contact

wheth the haldir nll eeuti at. the contaet. ior not
only whan he
is in poit)
ATM ( the Mony) = No Profit No lost
(n th Mony) (out of the mong)
0piony ItM ATM 0T
Loss
Cal

Put 3<* S=x

 Options
Call (000 (o00
q00 ITM
|200 0TM
Put oo0 (000 AtM
pat 3640 36J0 TTM
Put 4000 3800

(Dounstdepen.pag
Pud
t is expensi
J =95-los
Decision Achally Xl00

undy cantat
freri. paid P?L
95
4 -2

3 -2
2
-

49
-2
00
-2
-2
|02 0
-2
(03

-2
 Poge No

(0| (02 (03 (04

tpot trit
thurt Put
Holdr sell auhe it s
He Relle te decsioh expensive
ma king ights to the

Pyein. Reed. P4 L
2 -3
46 -4 2 - 2

-3 2 -|
- 2 2

99 2
2 2
2

[02 2 2
2 2
2
2 2
 Pae No

Spol Pie

lediny
Spot futut

Buging X= flo00 afty onthe

Io grs gald
futut P{L - sk- 6|k
4Profit: 3000 Losg

= 3000- 200O
 -63t0 |oo000
hovtt =p4L Total
iuP)-
80 3eHemsnt
ohaes
-l6s 185 P/L:
friulop) Conhacd
=118J
Soln
fham 23o/thar atdosod ahich 95/than at
antoct 2S04 unJ)fot lot oith bank 7C1C1
onpiu 18rkha,
priu th olthan
lot a ith bonk Axis heck
o cah Juhue
 4 12 23
Buying
Long futuyy:

Spot iu - Jov0- 2000

S X P4L
|Soo
- 400
ll00

| 20 300
|300

|400

(600
20D

|800 300

|100
2000

PfL of
(ong

(300 1oo

(Coo |200
t
 Page No,

Dete
|22

t Short Futurs:

Exey cige Priu(x)= \D0

Spat price looo

|200 300

1300 200
1400

-{o0
|7oo 200

- 300

- Zo0
2000 -|00

(000 200
 3

Hedting:

Kurmar entersinto if. utues contact in

ovder to achiee pzafit calulote the pnfite
a) Sell 20 fatrel cantract at a piu gf 250
|o000 per fantat, the Jpot priu
xpiry i ZH

A30 futne contact of Jin da gteele bought at

+doln:
420)fhoit ttuesi

contaH= 20

Pnft 1 Contrat - 0000xH

BLang futuny
etfemnt Pieselling Pr'e) j0
{l=SP- BP= 00-960 =- 60 = lofs
 Page No.
Dete

=130o00

Þ4 M.. Tushai enttsintofuturessnhoet

futune
controc of Ai! bank at t
oith (ot siu ot
of 3Son 4 spot piu oh
of 8oo

Iong psitich baging 15 onracts at

Dlu of ghae ith ot
xpin at 1200
3oln:
o)hort futues:
CP= o sl)

P4L=-So
per tonhat os e 3Jo0 =|p00
 Data

lLong Eutuyey

P4L= 3

Tota Pnht 52 So009 x)$

=181D,000
 Pece No I6
Dets

1 Cong call (Lc) 1 hart cal (sc)

X= 4 O00 X= 4200
P=73S

gP= 3o0, 38o0-40D

BEP = X of Ll + (P of Le-Pof sc)

+ (130-3)
= 4135

3poB pria
IV Prem.
Paid IV
3400 35 3J - |3J
3800
3S - |3J
3900
35 -130
0 -1o -135
4135 135 3S
4200 200
4300 3 00 -65
4400 400 230 - 200 -|6J
4s00 330 -300 - 265 6J
 Paga No

Data

3800 LIÁS 420n 4400

3b0 3400 43n0

pot Prie

Bul Pat Spytad

15hort Put (sp
X=14|oo X= 4200
P= 3S P 40

3-p=3to-4SOO

of 3P-(P ofse-P ofLP)

200- o-35
 Page No
Dete

3pot LP (x=4lo) Pem.

Priu Pempoid
37o0 4o0 35 36S 40
3800 300 -35 2 6J - 4 00 40 - 360
300 00 - 3S |6S -300 -260 - 95
6J - 200 40
3J - 60
4198 - 35
-45
+35
4200
40
4300
5
4sD0 5
5

3 to0 4
 2| 12 23

Bear call p ad i
p- Prmium
X=4,200 X =40Qo S-P- Spot pna
p= 35

BEP- X

= 4|3S

Jpat Aiiadi LC (x=*4,200) SCx4000)

em.
P4L
Prepaid PL (o) IV Recd PAL(L)
-35 |to 135
3.7e0 35
-35 - 35 135

300 -3S - 35 135

-35
135
- 3J
- 3S 35 -Jo0 35
4lo0
-35 - |35 35
413s -3J
- 200 -30 - 65
- 3J -3S
4200 -130 65
- 3J -300
4300
|65 -230 - 6S
- 3J
- 330 65
300 - 3J 265 -So

PA)

,
3 o0
 Puge N

t Bear Put
LP
Jpoad
JP
X= 4,2oo
P 23S
9-p 3 to So

BEP- X of lp-P of Le-p of sr)

= 4200 - (40-35)

Spst Piie
IV P4L(a) IV Pe. Pacd. P4LC) (a4b)
3700 460 -4b0 35 -365 25
33o0 3 (0 - 300 35 - 2 65 95
39 00 300 260 35 -|65 95
60
-4o 35 - (S
95
-43 60 35 35 95
-35 35
35
G.206 35 35
35 35 - 5

35 35 -5
4.506 -40 35 35 -5

X-oxil
 e No 2A
Date

3P

X=S4o X=56o

spot
ghat Put
Totel
1V 1V
Piu
400 -320 - 230

Sloo -3o0 8 - 220 -|3o

5200
-30
-|To
52g°
-00
80
80
o

5too -|oD 0

-170 - 80
8 30
90
- |30
-300 -2o
-23
-3|0

540
6000
Som 5357
 Pe o

ete 22
|5 0124

fomu

C+ x/1+ ) :P+s
wher
C= Pocmium oh Call oplisn
Y Ratt
Ratt infeet
: time pegid
P: Put ption pemium

R = |o'|.

to/1-4o) P+ 200

botzutz (o+ |1529 P+ 200

P 205.21-o0
P 5.29
 23

Soln:
c+ x/(l+r)t: P+f
55 + oo/lto-o) 3 62+ S
55+ 500 l-0s) 62+5

:.J- 48o-&

Joln:

5t 142- 8+s
[92{-8= S
-3= |\:28
 Dete
24

paboilily olong uhth th t..

uing Aiwoniol aptian
Up Dould moe

(u
Stu sl+) 0-24--o 20

=0-6

stu-x
2S0-2o

= 24

std-x

0
 25

h 300X= 230 0=30/

Joln:
t sllau)
- 30*((+n.2) (u-d)

390 o-30-(-0-23)
933
o53

= 300(/- :23) = 06 2
= 300o7}
231
l- 0. 62

Stu -x
Stu3q3 39 0 -3|0
=80x62
So= 3o0

Jtd23| std-x
231-3|o