Derivatives are financial instruments whose value is derived from an underlying asset such as stocks, bonds, currencies, or commodities. The three main types of derivatives are futures, options, and swaps. Futures are standardized contracts to buy or sell an asset in the future at an agreed upon price. Options provide the right but not obligation to buy or sell an asset. Swaps involve exchanging one set of cash flows for another. Derivatives are used for hedging risk, speculation, and arbitrage opportunities.
OptionWin - Financial portal dedicated to the Indian stock and index options. Largely covers option spread strategies and scans the market for trading opportunities.
OptionWin - Financial portal dedicated to the Indian stock and index options. Largely covers option spread strategies and scans the market for trading opportunities.
The STRADDLE is a trading strategy that involves the use of options. This strategy calls for taking a neutral stand on the market. And thus, suggests buying or selling, call and put options of the exact same strike price, with the same expiry date for the same underlying security.
https://efinancemanagement.com/derivatives/straddle-2
Options are becoming increasingly mainstream. As their use has grown, so have the opportunities to add convenience and flexibility to property transactions.
In this presentation our experts delve into everything you need to know about how, when and why to use put and call options.
The STRADDLE is a trading strategy that involves the use of options. This strategy calls for taking a neutral stand on the market. And thus, suggests buying or selling, call and put options of the exact same strike price, with the same expiry date for the same underlying security.
https://efinancemanagement.com/derivatives/straddle-2
Options are becoming increasingly mainstream. As their use has grown, so have the opportunities to add convenience and flexibility to property transactions.
In this presentation our experts delve into everything you need to know about how, when and why to use put and call options.
Strategic role of compensation, strategic compensation policy, total compensa...Ramona Beharry
This PowerPoint deals with the Strategic role of compensation in the organization. States how you develop a total compensation strategy and also strategic compensation planning.
Mortgage Banking Seminar is part of the continuing series of training presentations for the Financial Services Industry. Check out our other presentations in this series and contact Saunders Learning Group if you have training needs. We can help, we have been doing training in the financial services industry for 30 years.
Descriptions and explanation of all types of derivative instruments to trade with on the capital market.
http://www.koffeefinancial.com/Static/Learn.aspx
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
2. Derivatives
• Derivative
– Financial Instrument whose value derived from an
underlying asset
– Financial Contract
• Underlying Assets
– Stocks, Bonds, Currencies, Commodities, Interest
Rates etc
• Example - Equity Option
– Equity Option is not a security by itself
– It is right to sell or buy an underlying security
– Only premium is paid to buy an option NOT the price
2
of the underlying equity
3. Derivative Markets
• Exchanges
– Intermediary who accommodates the trade
and guarantees the execution
– Collects the Margin if applies
– Specialized Derivatives Exchanges
– Regular Exchanges
• OTC (Over-the-counter)
– Direct Contract between two parties
– Non-standard contracts
3
4. Major Classes of Derivatives
• Futures and Forwards
– DJIA Index Future, Eurodollar Future, Bond
Future, FX Future etc
– FX Forward, Repos, FRA etc
• Options
– Stock Option, Warrant etc
• Swaps
– Interest Rate Swap
– Currency Swap etc
4
6. Futures Contract
• A legally binding agreement to sell or buy a
commodity or financial instrument some time in
future
• Futures are standardized according to quality,
quantity, and delivery time and location for each
commodity
• Price of futures is discovered on an exchange
trading floor
• Exchange takes some responsibility for futures
approved/sold on the floor
• Futures contract needs funds to be deposited
(margin) by buyer/seller as a guarantee 6
7. Futures cont..
• Futures can be settled with cash instead
of delivery of the actual underlying asset
• Futures contracts are available on
– Corn and other grains
– Crude oil
– Treasury bond
– Foreign currency
– Stock and other financial instruments
7
8. Futures Positions
• Long position – purchasing the futures
contract (to buy the asset in future)
– Hedgers can use to hedge from rising prices
– Speculators can use in anticipation of higher
prices
• Short position – selling the futures contract
(to sell the asset in future)
– Hedgers can use to hedge from falling prices
– Speculators can use in anticipation of
lowering prices 8
9. Forwards
• Non-standardized futures contracts
• Contract between two individual parties
• Sold in OTC Markets
• Usually Brokerage Institutions arrange
deals
• Carry the risk of default
• Futures are interchangeable; Forwards
are not
9
10. Forward
• Similar to Futures Contract but not
Standard
• Traded between two private parties (in
OTC Markets)
• On delivery date, holder may actually
deliver the instrument or pay the price
difference
• Riskier than Futures
• Popular on Currencies and Interest Rates
10
11. Futures Vs Forwards
• Exchange Traded • OTC Traded
• Usually closed out • Usually underlying
prior to maturity asset delivered
• Standardized • Terms vary
• Settled daily • Settled at expiry
11
12. Options and Futures Exchanges
• Chicago Board of Trade – CBOT
www.cbot.com
• Chicago Mercantile Exchange – CME
www.cme.com
• New York Mercantile Exchange – NYMEX
www.nymex.com
Slide 26
12
13. Option
• Right to buy or sell an underlying instrument
• Just premium is paid to buy the option not the
value of the underlying asset
• It is just a RIGHT not an OBLIGATION
– Holder may not execute his right at all
• Popular Options
– Stock option
– Bond option
– Commodity option
– Interest Rate option
– FX option etc.
13
14. SWAP
• Is an agreement between two parties to
swap one set of CASH FLOW with
another set
• For example, holder of Fixed interest rate
loan may exchange his cash flow (return
stream) with a party who holds Floating
rate loan cash flow
• Traded in OTC Derivatives Markets
• Various SWAPs
– Interest Rate Swap
– Currency Swap etc
14
15. Why Derivatives?
• Hedging / Insurance
– Transfer the RISK
– Ex: Farmer selling a crop before its harvest to
protect from any future fluctuations in prices
• Arbitrage
– Buying an instrument in one market and
selling in another and profiting from the
difference
• Speculation
– Speculating the price variation in instrument
and buying futures or options of that
instrument
15
16. Why Derivatives? …cont
• To change the nature of liability
• To change he nature of the investment
without selling the instrument itself etc.
16
17. Hedging Example
• Own a 1000 shares of IBM. Market Value
$100/share
• Worried about possible price decline over
next 3 months
• Need a protection from a decline OR
• Lock-in at certain price
• Hedging choice
– Buy options to protect
– Sign a forward contract to lock-in the price
17
18. Hedging Example - Options
• Buy IBM PUT OPTION on some exchange
– 3 months expiry
– Strike price $98
– Option price $4
– 10 contracts (10 * 100 * 4 = $4000)
• Cost of strategy is $4000
• If the market price falls below $98, option
can be exercised at $98 returning $98,000
• The final amount realized 98000 – 4000 =
$94,000 (regardless how low the stock
price is)
18
19. Hedging Example - Options
• If the market price stays above $98,
Option is not exercised and it expires
• The final amount realized 98000 – 4000 =
$94,000 (regardless how low the stock
price is)
• The cost of the strategy is $4000 and the
value of the holding is always above
$94,000
19
21. Speculation
• Betting on either price of the asset goes up or
down
• Speculators can use any derivative
– Future/Forward
– Option
• Speculator needs to deposit nominal amount to
buy future
• Speculator needs pay the premium to buy the
option
• In case of Future speculator may make or lose
LARGE amount of money
• In case of Option Losses are limited to the
premium paid
21
22. Speculation Example
• Betting on either price of the asset goes
up or down
• Assume speculator in US thinks that
EURO will strengthen over next 3 months
(Sep)
• He is willing to be on amount worth of
E250,000
• He buys Futures contract
– Futures price 1.6410
– Buy 4 futures
– Each contract on E62,500
22
23. Speculation Example
• If in September the SPOT price is 1.7000
– Profit made is
– (1.7 – 1.6410) * 250,000 = 14,750
• If in September the SPOT price is 1.6000
– Loss is
– (1.6410 – 1.600) * 250,000 = 10,250
23
24. Arbitrage
• Locking the profit by simultaneously
entering into contacts in multiple markets
• Buy instrument in one market and sell in
another market
• Benefit from the spread in the markets
24
25. Arbitrage Example
• Assume US/EURO spot price 1.75
• Assume the stock is trading in NYSE at
$172 and in LSE trading at E100
• Arbitrageur see an opportunity and trades
the stock
• Profit made is
– 100 * {(1.75*100) -172} = $300
• On large volumes profits exceed
transaction costs 25
26. Pros and Cons of Derivatives
• Speculation is very dangerous
• Hedging is mandatory to protect
• Arbitrage is an opportunity to make money
(worse case losses are limited)
• When some hedgers become speculators
it may cause disasters
26
28. Options Vs Futures
• Options Contract
– Provides the insurance
– Protects from adverse future movements
– Benefit from favorable future movements
– Upfront cost is involved
• Futures Contract
– Neutralize the Risk
– Protects from adverse future movements but
also limit returns from favorable movements
– No upfront cost
28
29. Options and Hedging
• A call is used primarily as a hedge for upside
market movement.
• A call is also used to hedge downside exposure
as an alternative to buying the underlying.
• Call’s: The buyer and seller have opposite views
about the market’s potential to move higher.
• A put option hedges a decline in the value of an
underlying asset.
• Put’s: The buyer and seller have opposite views
about the market’s potential to move lower.
29
30. Upper Bounds on Option Prices
• Any call price must be less than the current
stock price. If not, you are better off just buying
the stock.
– Alternatively an arbitrageur can easily make a
risk-less profit by buying stock and selling the
call option
• Any put price must be less than the strike price.
If not, you are better off just selling the stock.
– Alternatively an arbitrageur could make a risk-
less profit by selling the option and investing
the proceeds of the sale at the risk-free
interest rate.
Source: Prof R. Sverdlove -
Financial Mgmt course, Spring 30
31. Lower Bounds on Option Prices
• Any call price must be greater than the
current stock price minus the PV of the
strike price. If not, you are better off just
buying the stock.
– Alternatively an arbitrageur can buy the
call and short the stock. Invest the +ve
cash flow at risk-free interest rate. At the
end the option either expires or is
exercised, and the short position is
closed. Either way he make profit.
Source: Prof R. Sverdlove -
Financial Mgmt course, Spring 31
32. Lower Bounds on Option Prices(2)
• Any put price must be greater than the PV
of the strike price minus the current stock
price. If not, you are better off just selling
the stock.
– Alternatively an arbitrageur can borrow
at risk-free interest rate to buy both put
and the stock. At the end option either
expires or is exercised, and stock is also
sold. The loan amount is repaid, leaving
some profit.
32
33. Typical Option Positions
• Options are usually bought and sold in
combination with other options and/or
shares of the underlying stock.
• This is a form of hedging: taking a
position that limits possible losses.
– A hedged position also limits possible gains.
– Un-hedged positions are risky, and are used
for speculation.
• These are referred as Option Trading
Strategies
33
35. Swaps
• A swap is an agreement to exchange cash flows
at specified future times according to certain
specified rules
• Swap trading
– Mostly on OTC market
– Simple swaps on Futures Exchange
• Swap Types
– Interest Rate Swap (Plain Vanilla)
– Currency Swap
– Credit swap
– Equity swap etc
35
36. Interest Rate Swap
• A company agrees to pay cash flows
equal to interest at a predetermined fixed
rate on a notional principal for a number of
years. In return, it receives interest at
floating rate on the same notional principal
for the same period of time.
36
37. Swap - Example
• An agreement by Microsoft to receive 6-
month LIBOR & pay a fixed rate of 5% per
annum every 6 months for 3 years on a
notional principal of $100 million
Fixed 5%
LIBOR Microsoft GS Brokerage
LIBOR
37
39. Use of Swaps
• Converting a liability from
– fixed rate to floating rate
– floating rate to fixed rate
• Converting an investment from
– fixed rate to floating rate
– floating rate to fixed rate
39
41. Valuation/Pricing
• Value/Fair Value/Price
• Valuation
– Process of finding the value of position
• Methods/Measures
– Fundamental Analysis
– Technical Analysis
– Quantitative Analysis etc
• Market Value
– Value in the Market or Current Quote (Asking and
Bidding price)
• Arbitrage-free Value
– Theoretical price of asset computed using
spot/futures price, interest rates, carrying costs and
all other costs
41
42. Valuation/Pricing cont..
• Intrinsic Value
– True value of the asset (calculated
considering all affecting parameters)
• Net Asset Value (NAV)
– Total Value of the Asset less Liabilities
• Book Value
– Value of an asset shown in the Balance Sheet (cost –
depreciation)
42
43. Fundamental Analysis
• Type of Valuation that is used to identify
the true value of the asset
• Uses all factors that affect asset price
• Example:
– Stock Valuation – uses factors like revenues,
earnings, future growth, return on equity,
profit margins etc
43
44. Technical Analysis
• Method of Valuation that is used to identify
the value of the asset using historical data
instead of using actual factors that affect
the value
• Based on belief that historical
performance is the indication of the future
performance
• Typically use Charts
44
45. Quantitative Analysis
• Way of valuating assets using complex
mathematical and statistical modeling,
measurement and research
• It assigns numerical value to all variable that
affect the asset value
• Analysts referred as
– “Quants” OR “Quant Jockeys”
• Examples of Quantitative Analysis measures
are, from simple Earnings Per Share to complex
Option Price
• Involves Mathematical Finance, Numerical
Methods, Statistics etc.
45