HEDGING<br />&<br />TOOLS OF HEDGING<br />1<br />Tools Of Hedging<br />
What is Hedging?<br />2<br />Tools Of Hedging<br />
Tools Of Hedging<br />3<br />Financial tools forSuccessInToday’s Economy<br />
Tools Of Hedging<br />4<br />What is a Forward Contract?<br />
Payoff  Profile for Buyer of Asset : Long Asset<br />Profit<br />60<br />2220<br />2280<br />2160<br />-60<br />Loss<br />...
Payoff  Profile for Seller of Asset : Short Asset<br />Profit<br />60<br />2220<br />2280<br />2160<br />-60<br />Loss<br ...
Tools Of Hedging<br />7<br />What is a Future Contract?<br />
8<br />Tools Of Hedging<br />
9<br />Tools Of Hedging<br />What are SWAPS?<br />
Tools Of Hedging<br />10<br />Interest Rate Swap<br />
Tools Of Hedging<br />11<br />Cash Flow of Microsoft<br />
12<br />Tools Of Hedging<br />OPTION<br />Call Option<br />Put Option<br />
Tools Of Hedging<br />13<br />BUY CALL<br />
Payoff  Profile for buyer of Call Option : Long Call<br />Profit<br />463.65<br />263.65<br />63.65<br />4700<br />4900<br...
Payoff  Profile for Writerof Call Option : Long Call<br />Profit<br />36.35<br />Premium<br />4636.35<br />4700<br />4900<...
Payoff  Profile for Seller of Put Option : Long Put<br />Profit<br />Nifty Index<br />Premium<br />Loss<br />16<br />Tools...
Payoff  Profile for Writerof Put Option : ShortPut<br />Profit<br />Premium<br />Nifty Index<br />Loss<br />17<br />Tools ...
Tools Of Hedging<br />18<br />What are Warrants?<br />
Tools Of Hedging<br />19<br />What are LEAPS?<br />
Tools Of Hedging<br />20<br />What are Swaptions?<br />
Tools Of Hedging<br />21<br />
Tools Of Hedging<br />22<br />Why Hedge?<br />Volatile Oil Prices<br />
Tools Of Hedging<br />23<br />THANK YOU<br />Presented By:<br /><ul><li>Ankit Gupta
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Hedging & Tools

  1. 1. HEDGING<br />&<br />TOOLS OF HEDGING<br />1<br />Tools Of Hedging<br />
  2. 2. What is Hedging?<br />2<br />Tools Of Hedging<br />
  3. 3. Tools Of Hedging<br />3<br />Financial tools forSuccessInToday’s Economy<br />
  4. 4. Tools Of Hedging<br />4<br />What is a Forward Contract?<br />
  5. 5. Payoff Profile for Buyer of Asset : Long Asset<br />Profit<br />60<br />2220<br />2280<br />2160<br />-60<br />Loss<br />5<br />Tools Of Hedging<br />
  6. 6. Payoff Profile for Seller of Asset : Short Asset<br />Profit<br />60<br />2220<br />2280<br />2160<br />-60<br />Loss<br />6<br />Tools Of Hedging<br />
  7. 7. Tools Of Hedging<br />7<br />What is a Future Contract?<br />
  8. 8. 8<br />Tools Of Hedging<br />
  9. 9. 9<br />Tools Of Hedging<br />What are SWAPS?<br />
  10. 10. Tools Of Hedging<br />10<br />Interest Rate Swap<br />
  11. 11. Tools Of Hedging<br />11<br />Cash Flow of Microsoft<br />
  12. 12. 12<br />Tools Of Hedging<br />OPTION<br />Call Option<br />Put Option<br />
  13. 13. Tools Of Hedging<br />13<br />BUY CALL<br />
  14. 14. Payoff Profile for buyer of Call Option : Long Call<br />Profit<br />463.65<br />263.65<br />63.65<br />4700<br />4900<br />5100<br />Premium<br />4636.35<br />Nifty Index<br />-36.35<br />Loss<br />14<br />Tools Of Hedging<br />
  15. 15. Payoff Profile for Writerof Call Option : Long Call<br />Profit<br />36.35<br />Premium<br />4636.35<br />4700<br />4900<br />5100<br />Nifty Index<br />-63.65<br />-263.65<br />-463.65<br />Loss<br />15<br />Tools Of Hedging<br />
  16. 16. Payoff Profile for Seller of Put Option : Long Put<br />Profit<br />Nifty Index<br />Premium<br />Loss<br />16<br />Tools Of Hedging<br />
  17. 17. Payoff Profile for Writerof Put Option : ShortPut<br />Profit<br />Premium<br />Nifty Index<br />Loss<br />17<br />Tools Of Hedging<br />
  18. 18. Tools Of Hedging<br />18<br />What are Warrants?<br />
  19. 19. Tools Of Hedging<br />19<br />What are LEAPS?<br />
  20. 20. Tools Of Hedging<br />20<br />What are Swaptions?<br />
  21. 21. Tools Of Hedging<br />21<br />
  22. 22. Tools Of Hedging<br />22<br />Why Hedge?<br />Volatile Oil Prices<br />
  23. 23. Tools Of Hedging<br />23<br />THANK YOU<br />Presented By:<br /><ul><li>Ankit Gupta
  24. 24. DivyaMelhotra
  25. 25. Ritika Gupta
  26. 26. Premjeet Singh Kapoor
  27. 27. UrvashiArya</li>

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