This document discusses various tools used for hedging, including forward contracts, futures contracts, swaps, options, warrants, LEAPS, and swaptions. It provides details on how each tool works, including payoff profiles for buyers and sellers. The purpose of hedging with these various financial tools is to help companies and individuals manage risks from volatile commodity prices and interest rates to succeed in today's economy.

1. HEDGING&TOOLS OF HEDGING1Tools Of Hedging

2. What is Hedging?2Tools Of Hedging

3. Tools Of Hedging3Financial tools forSuccessInToday’s Economy

4. Tools Of Hedging4What is a Forward Contract?

5. Payoff Profile for Buyer of Asset : Long AssetProfit60222022802160-60Loss5Tools Of Hedging

6. Payoff Profile for Seller of Asset : Short AssetProfit60222022802160-60Loss6Tools Of Hedging

7. Tools Of Hedging7What is a Future Contract?

8. 8Tools Of Hedging

9. 9Tools Of HedgingWhat are SWAPS?

10. Tools Of Hedging10Interest Rate Swap

11. Tools Of Hedging11Cash Flow of Microsoft

12. 12Tools Of HedgingOPTIONCall OptionPut Option

13. Tools Of Hedging13BUY CALL

14. Payoff Profile for buyer of Call Option : Long CallProfit463.65263.6563.65470049005100Premium4636.35Nifty Index-36.35Loss14Tools Of Hedging

15. Payoff Profile for Writerof Call Option : Long CallProfit36.35Premium4636.35470049005100Nifty Index-63.65-263.65-463.65Loss15Tools Of Hedging

16. Payoff Profile for Seller of Put Option : Long PutProfitNifty IndexPremiumLoss16Tools Of Hedging

17. Payoff Profile for Writerof Put Option : ShortPutProfitPremiumNifty IndexLoss17Tools Of Hedging

18. Tools Of Hedging18What are Warrants?

19. Tools Of Hedging19What are LEAPS?

20. Tools Of Hedging20What are Swaptions?

21. Tools Of Hedging21

22. Tools Of Hedging22Why Hedge?Volatile Oil Prices

23. Tools Of Hedging23THANK YOUPresented By:Ankit Gupta