This document provides an overview of a presentation on financial derivatives. It includes sections on financial markets, types of derivatives markets, players in derivatives markets, and types of derivatives. Specific derivatives discussed include call options, put options, and interest rate and currency swaps. The document concludes that while derivatives are commonly used to hedge and avoid risk, they cannot completely eliminate risk for firms - they can only help minimize the risks involved in trades.

1. APRESENTATIONON FINANCIALDERIVATIVES
Presented by:- Sai Priyanka Kurapati
Reg.no.:-18491e0015
qiscet
sapm

2. Financial markets
Introduction
Type's of derivatives
Features of derivatives
Players in derivatives
Types of derivatives
conclusion
Contents
covered under
this topic

4. Types of financial markets
Financial market
Financial market is a place where
people can trade the securities
&derivatives at a low cost
Commodity market
Money market
Derivative market
Foreign exchange market
Capital market

9. Players in derivative market

16. Call options are financialcontractsthatgivethe optionbuyer the
right,but not the obligation, to buy a stock,bond, commodityor other
assetor instrument at a specifiedpricewithina specific time period.

18. A put option is a contract giving the owner the right,
but not the obligation, to sell a specified amount of
an underlying security at a pre-determined price
within a specified time

19. in terms of valuing option contracts, it is essentially all about determining
the probabilities of future price events. The more likely something is to
occur, the more expensive an option would be that profits from that event.

20. CLOSING OUT OPTION
 It simply means to close out an options position by putting in an order
to sell the contract.
 A trader can sell to close for a profit, a loss or break even.
 If an option is out of the money and will expire worthless, a trader may
still choose to sell to close to clear the position.

22. Types of swaps
Interest rate swaps
Currency swaps

23. DERIVATIVES ARE MOST COMMONLY USED TOOLS FOR
HEDGING TO AVOID RISK IN MARKET BUT THEY CANNOT
COMPLETELY ELIMINATE THE RISK OF THE FIRMS THEY CAN
ONLY MINIMIZE THE RISK INCLUDED IN THE TRADE.