An options contract gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified strike price on or before the expiration date. There are call and put options. A call option allows buying the asset, while a put option allows selling the asset. The buyer pays a premium to the seller for this right. The profit/loss of the buyer and seller depends on whether the option expires in or out of the money. The buyer's potential profit is unlimited but their loss is limited to the premium paid, whereas for the seller the potential loss is unlimited but profit is limited to the premium received.
This ppt is prepared to provide detailed information regarding Forwards and Futures contracts of Derivatives the topics covered under this are Meaning of Forwards contracts, Underlying Assets of Forwards contracts, FEATURES OF FORWARD CONTRACTS, Tailored made, Why Forwards contracts, FUTURES CONTRACT, What is A Futures Contract, Characteristics of Futures contracts, Mechanism of Trading in Futures Market, Margin requirement, Marking-to-market (M2M), SETTLING A FUTURE POSITION, OFFSETTING, CASH DELIVERY, by Sundar, Assistant Professor of commerce.
Subscribe to Vision Academy for Video assistance
https://www.youtube.com/channel/UCjzpit_cXjdnzER_165mIiw
Derivatives - Basics of Derivatives contract covered in this pptSundar B N
Derivatives - Basics of Derivatives including forward, futures, swap and options contracts which covers HISTORY OF DERIVATIVES, CHARACTERISTICS OF DERIVATIVES , FEATURES OF DERIVATIVES, FUNCTIONS OF DERIVATIVES MARKET, USES OF DERIVATIVES, DIFFERENCE BETWEEN SHARES AND DERIVATIVES SHARES DERIVATIVES, DEFINITION OF UNDERLYING ASSET, DERIVATIVES ADVANTAGES AND DISADVANTAGES, PARTICIPANTS/ TRADERS IN DERIVATIVES MARKET, SPECULATORS, ARBITRAGEURS, HEDGER
Subscribe to Vision Academy for Video assistance
https://www.youtube.com/channel/UCjzpit_cXjdnzER_165mIiw
Want to understand how options work but don\'t have time to go through books? Read this presentation I prepared with couple of my classmates for a case study in Advanced Finance at AIM
Options are a type of derivative security. They are a derivative because the price of an option is intrinsically linked to the price of something else. Specifically, options are contracts that grant the right, but not the obligation to buy or sell an underlying asset at a set price on or before a certain date. The right to buy is called a call option and the right to sell is a put option. People somewhat familiar with derivatives may not see an obvious difference between this definition and what a future or forward contract does. The answer is that futures or forwards confer both the right and obligation to buy or sell at some point in the future. For example, somebody short a futures contract for cattle is obliged to deliver physical cows to a buyer unless they close out their positions before expiration. An options contract does not carry the same obligation, which is precisely why it is called an “option.”
This ppt is prepared to provide detailed information regarding Forwards and Futures contracts of Derivatives the topics covered under this are Meaning of Forwards contracts, Underlying Assets of Forwards contracts, FEATURES OF FORWARD CONTRACTS, Tailored made, Why Forwards contracts, FUTURES CONTRACT, What is A Futures Contract, Characteristics of Futures contracts, Mechanism of Trading in Futures Market, Margin requirement, Marking-to-market (M2M), SETTLING A FUTURE POSITION, OFFSETTING, CASH DELIVERY, by Sundar, Assistant Professor of commerce.
Subscribe to Vision Academy for Video assistance
https://www.youtube.com/channel/UCjzpit_cXjdnzER_165mIiw
Derivatives - Basics of Derivatives contract covered in this pptSundar B N
Derivatives - Basics of Derivatives including forward, futures, swap and options contracts which covers HISTORY OF DERIVATIVES, CHARACTERISTICS OF DERIVATIVES , FEATURES OF DERIVATIVES, FUNCTIONS OF DERIVATIVES MARKET, USES OF DERIVATIVES, DIFFERENCE BETWEEN SHARES AND DERIVATIVES SHARES DERIVATIVES, DEFINITION OF UNDERLYING ASSET, DERIVATIVES ADVANTAGES AND DISADVANTAGES, PARTICIPANTS/ TRADERS IN DERIVATIVES MARKET, SPECULATORS, ARBITRAGEURS, HEDGER
Subscribe to Vision Academy for Video assistance
https://www.youtube.com/channel/UCjzpit_cXjdnzER_165mIiw
Want to understand how options work but don\'t have time to go through books? Read this presentation I prepared with couple of my classmates for a case study in Advanced Finance at AIM
Options are a type of derivative security. They are a derivative because the price of an option is intrinsically linked to the price of something else. Specifically, options are contracts that grant the right, but not the obligation to buy or sell an underlying asset at a set price on or before a certain date. The right to buy is called a call option and the right to sell is a put option. People somewhat familiar with derivatives may not see an obvious difference between this definition and what a future or forward contract does. The answer is that futures or forwards confer both the right and obligation to buy or sell at some point in the future. For example, somebody short a futures contract for cattle is obliged to deliver physical cows to a buyer unless they close out their positions before expiration. An options contract does not carry the same obligation, which is precisely why it is called an “option.”
The objective of this project is to provide the reader with knowledge of the various equity option strategies used today that are applicable in different market situations.
OptionWin - Financial portal dedicated to the Indian stock and index options. Largely covers option spread strategies and scans the market for trading opportunities.
To become a good Options investor, understanding the basic fundamentals and its pricing is key. In this session, we will discuss fundamentals of Options. This is an opportunity for beginners to ask the most basic questions on the working of CALL/PUT options and we will also put on trades (on a demo account).
We will discuss risks of buying and writing Options.
We can then talk about basic strategies involving single CALL/PUT contracts. We will see why writing PUTS can be so rewarding; so much so that Warren Buffet prefers selling PUT options.
Learn about the uses and risks of buying options on futures contracts. A book to provide information about the futures industry to potential investors. This booklet has been prepared as a part of NFA’s continuing public education efforts to provide information about the futures industry to potential investors. To download the free futures options trading report, visit:https://www.cannontrading.com/tools/education-futures-options-trading-101
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
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
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
NO1 Uk Black Magic Specialist Expert In Sahiwal, Okara, Hafizabad, Mandi Bah...Amil Baba Dawood bangali
Contact with Dawood Bhai Just call on +92322-6382012 and we'll help you. We'll solve all your problems within 12 to 24 hours and with 101% guarantee and with astrology systematic. If you want to take any personal or professional advice then also you can call us on +92322-6382012 , ONLINE LOVE PROBLEM & Other all types of Daily Life Problem's.Then CALL or WHATSAPP us on +92322-6382012 and Get all these problems solutions here by Amil Baba DAWOOD BANGALI
#vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore#blackmagicformarriage #aamilbaba #kalajadu #kalailam #taweez #wazifaexpert #jadumantar #vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore #blackmagicforlove #blackmagicformarriage #aamilbaba #kalajadu #kalailam #taweez #wazifaexpert #jadumantar #vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore #Amilbabainuk #amilbabainspain #amilbabaindubai #Amilbabainnorway #amilbabainkrachi #amilbabainlahore #amilbabaingujranwalan #amilbabainislamabad
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.
how can I sell my pi coins for cash in a pi APPDOT TECH
You can't sell your pi coins in the pi network app. because it is not listed yet on any exchange.
The only way you can sell is by trading your pi coins with an investor (a person looking forward to hold massive amounts of pi coins before mainnet launch) .
You don't need to meet the investor directly all the trades are done with a pi vendor/merchant (a person that buys the pi coins from miners and resell it to investors)
I Will leave The telegram contact of my personal pi vendor, if you are finding a legitimate one.
@Pi_vendor_247
#pi network
#pi coins
#money
Latino Buying Power - May 2024 Presentation for Latino CaucusDanay Escanaverino
Unlock the potential of Latino Buying Power with this in-depth SlideShare presentation. Explore how the Latino consumer market is transforming the American economy, driven by their significant buying power, entrepreneurial contributions, and growing influence across various sectors.
**Key Sections Covered:**
1. **Economic Impact:** Understand the profound economic impact of Latino consumers on the U.S. economy. Discover how their increasing purchasing power is fueling growth in key industries and contributing to national economic prosperity.
2. **Buying Power:** Dive into detailed analyses of Latino buying power, including its growth trends, key drivers, and projections for the future. Learn how this influential group’s spending habits are shaping market dynamics and creating opportunities for businesses.
3. **Entrepreneurial Contributions:** Explore the entrepreneurial spirit within the Latino community. Examine how Latino-owned businesses are thriving and contributing to job creation, innovation, and economic diversification.
4. **Workforce Statistics:** Gain insights into the role of Latino workers in the American labor market. Review statistics on employment rates, occupational distribution, and the economic contributions of Latino professionals across various industries.
5. **Media Consumption:** Understand the media consumption habits of Latino audiences. Discover their preferences for digital platforms, television, radio, and social media. Learn how these consumption patterns are influencing advertising strategies and media content.
6. **Education:** Examine the educational achievements and challenges within the Latino community. Review statistics on enrollment, graduation rates, and fields of study. Understand the implications of education on economic mobility and workforce readiness.
7. **Home Ownership:** Explore trends in Latino home ownership. Understand the factors driving home buying decisions, the challenges faced by Latino homeowners, and the impact of home ownership on community stability and economic growth.
This SlideShare provides valuable insights for marketers, business owners, policymakers, and anyone interested in the economic influence of the Latino community. By understanding the various facets of Latino buying power, you can effectively engage with this dynamic and growing market segment.
Equip yourself with the knowledge to leverage Latino buying power, tap into their entrepreneurial spirit, and connect with their unique cultural and consumer preferences. Drive your business success by embracing the economic potential of Latino consumers.
**Keywords:** Latino buying power, economic impact, entrepreneurial contributions, workforce statistics, media consumption, education, home ownership, Latino market, Hispanic buying power, Latino purchasing power.
2. A contract (agreement)
Giving a right to buy/ sell
A specific asset
At a specific price
Within a specific time period
6/17/2015 2
Muhammad Nowfal S
MSN Institute of Management
3. “An Options contract confers the right but not the obligation to buy
or sell a specified underlying instrument or asset at a specified price
– the Strike or Exercise price, until or at specified future date – the
Expiry date.
The option buyer has the right and option seller has the obligation
i.e. option buyer may or may not exercise the option given, but, If
option buyer decides to exercise the option, option seller has no
choice but to honour the obligation.
6/17/2015
Muhammad Nowfal S
MSN Institute of Management
3
4. Buyer of an option: The buyer of an option is the one who by paying
the option premium buys the right but not the obligation to exercise
his option on the seller/writer.
Writer / seller of an option: The writer / seller of a call/put option is
the one who receives the option premium and is thereby obliged to
sell/buy the asset if the buyer exercises on him.
Call option: A call option gives the holder the right but not the
obligation to buy an asset by a certain date for a certain price.
Put option: A put option gives the holder the right but not the
obligation to sell an asset by a certain date for a certain price.
6/17/2015 4
Muhammad Nowfal S
MSN Institute of Management
5. Option price/premium: Option price is the price which the option
buyer pays to the option seller. It is also referred to as the option
premium.
Expiration date: The date specified in the options contract is known
as the expiration date, the exercise date, the strike date or the
maturity.
Strike price: The price specified in the options contract is known as
the strike price or the exercise price.
6/17/2015
Muhammad Nowfal S
MSN Institute of Management
5
6. CE PE
In the money Spot Price > Strike Price Spot Price < Strike Price
At the money Spot price = strike price Spot Price = Strike Price
Out of the money Spot Price < Strike Price Spot Price > Strike Price
6/17/2015
Muhammad Nowfal S
MSN Institute of Management
6
7. Payoff for buyer of call option
Payoff for seller of call option
Payoff for buyer of put option
Payoff for seller of put option
6/17/2015
Muhammad Nowfal S
MSN Institute of Management
7
8. The profit/loss that the buyer makes on the option depends on the
spot price of the underlying.
If upon expiration, the spot price exceeds the strike price, he makes
a profit. Higher the spot price, more is the profit he makes.
If the spot price of the underlying is less than the strike price, he
lets his option expire un-exercised.
His loss in this case is the premium he paid for buying the option
6/17/2015
Muhammad Nowfal S
MSN Institute of Management
8
9. • The payoff for the buyer of a three month call option with a
strike of 2250 bought at a premium of 86.60 is as follows
6/17/2015
Muhammad Nowfal S
MSN Institute of Management
9
On expiry Nifty closes at Pay Off from CE Net Pay Off
2400 150 63.4
2350 100 13.4
2300 50 -36.6
2250 0 -86.6
2200 -86.60 -86.6
2150 -86.60 -86.6
2100 -86.60 -86.6
11. If the spot Nifty rises, the call option is in-the-money. If upon
expiration, Nifty closes above the strike of 2250, the buyer
would exercise his option and profit to the extent of the
difference between the Nifty-close and the strike price.
The profits possible on this option are potentially unlimited.
However if Nifty falls below the strike of 2250, he lets the
option expire.
His losses are limited to the extent of the premium he paid for
buying the option.
6/17/2015
Muhammad Nowfal S
MSN Institute of Management
11
12. For selling the option, the writer of the option charges a premium.
The profit/loss that the buyer makes on the option depends on the
spot price of the underlying.
Whatever is the buyer's profit is the seller's loss. If upon expiration,
the spot price exceeds the strike price, the buyer will exercise the
option on the writer. Hence as the spot price increases the writer of
the option starts making losses. Higher the spot price, more is the
loss he makes.
If upon expiration the spot price of the underlying is less than the
strike price, the buyer lets his option expire un-exercised and the
writer gets to keep the premium.
6/17/2015
Muhammad Nowfal S
MSN Institute of Management
12
13. The payoff for the writer of a three month call with a strike of 2250 sold at a
premium of 86.60.
6/17/2015
Muhammad Nowfal S
MSN Institute of Management
13
Nifty closes at Pay off from CE Net Payoff
2100 86.60 86.60
2150 86.60 86.60
2200 86.60 86.60
2250 86.60 86.60
2300 -50 36.6
2350 -100 13.4
2400 -150 -63.4
2500 -250 -163.4
15. As the spot Nifty rises, the call option is in-the-money and the writer starts
making losses.
If upon expiration, Nifty closes above the strike of 2250, the buyer would
exercise his option on the writer who would suffer a loss to the extent of
the difference between the Nifty-close and the strike price.
The loss that can be incurred by the writer of the option is potentially
unlimited, whereas the maximum profit is limited to the extent of the up-
front option premium of Rs.86.60 charged by him.
6/17/2015
Muhammad Nowfal S
MSN Institute of Management
15
16. Put option gives the buyer the right to sell the underlying asset at the
strike price specified in the option.
The profit/loss that the buyer makes on the option depends on the
spot price of the underlying.
If upon expiration, the spot price is below the strike price, he makes
a profit.
Lower the spot price, more is the profit he makes.
If the spot price of the underlying is higher than the strike price, he
lets his option expire un-exercised.
His loss in this case is the premium he paid for buying the option
6/17/2015
Muhammad Nowfal S
MSN Institute of Management
16
17. the payoff for the buyer of a three month put option (often referred
to as long put) with a strike of 2250 bought at a premium of 61.70
6/17/2015
Muhammad Nowfal S
MSN Institute of Management
17
Nifty closes at Pay off from PE Net Pay off
2100 150 88.3
2150 100 38.3
2200 50 -11.7
2250 0 -61.70
2300 -61.70 -61.70
2350 -61.70 -61.70
2400 -61.70 -61.70
19. As can be seen, as the spot Nifty falls, the put option is in-the-
money.
If upon expiration, Nifty closes below the strike of 2250, the
buyer would exercise his option and profit to the extent of the
difference between the strike price and Nifty-close.
The profits possible on this option can be as high as the strike
price.
However if Nifty rises above the strike of 2250, he lets the
option expire.
His losses are limited to the extent of the premium he paid for
buying the option.
6/17/2015
Muhammad Nowfal S
MSN Institute of Management
19
20. For selling the option, the writer of the option charges a
premium.
The profit/loss that the buyer makes on the option depends
on the spot price of the underlying
. Whatever is the buyer's profit is the seller's loss.
If upon expiration, the spot price happens to be below the
strike price, the buyer will exercise the option on the writer.
If upon expiration the spot price of the underlying is more
than the strike price, the buyer lets his option un-exercised
and the writer gets to keep the premium.
6/17/2015
Muhammad Nowfal S
MSN Institute of Management
20
21. the payoff for the writer of a three month put option (often referred to as
short put) with a strike of 2250 sold at a premium of 61.70
6/17/2015
Muhammad Nowfal S
MSN Institute of Management
21
Nifty closes at Pay off from PE Net Pay off
2100 -150 -88.3
2150 -100 -38.33
2200 -50 11.7
2250 0 61.70
2300 61.70 61.70
2350 61.70 61.70
2400 61.70 61.70
23. As the spot Nifty falls, the put option is in-the-money and the writer starts
making losses.
If upon expiration, Nifty closes below the strike of 2250, the buyer would
exercise his option on the writer who would suffer a loss to the extent of
the difference between the strike price and Nifty close.
The loss that can be incurred by the writer of the option is a maximum
extent of the strike price (Since the worst that can happen is that the asset
price can fall to zero) whereas the maximum profit is limited to the extent
of the up-front option premium of Rs.61.70 charged by him.
6/17/2015
Muhammad Nowfal S
MSN Institute of Management
23
24. Position Return Risk
Long Call Unlimited Limited
Short Call Limited Unlimited
Long Put Unlimited Limited
Short Put Limited Unlimited
6/17/2015
Muhammad Nowfal S
MSN Institute of Management
24
25.
26. The model most commonly used by a practitioners and traders to
price and value options is the Black-Scholes pricing model. The
Black-Scholes model examines five factors that affect the price of
an option:
1. The spot price of the underlying asset
2. The exercise price on the option
3. The option’s exercise date
4. Price volatility of the underlying asset
5. The risk free rate of interest
6/17/2015
Muhammad Nowfal S
MSN Institute of Management
26
28. The difference between the underlying asset’s spot price and an
option’s exercise price is called the option’s intrinsic value.
Intrinsic value means how much is option ITM. Deeper is the option
in the money more is the intrinsic value of an option. If the option is
OTM or ATM its intrinsic value is zero.
For a call option intrinsic value is
Max (0, (St – K)) and
For a put option intrinsic value is
Max (0, (K - St))
(Where, St - Stock Price K - Strike Price)
In other words Intrinsic value can only be positive or zero.
6/17/2015
Muhammad Nowfal S
MSN Institute of Management
28
29. Time Value of an option: Time value is difference between option
premium and intrinsic value. It comprises of
1. Risk free rate
2. Volatility
3. Time to Expiry
The time value of an option is always positive and declines
exponentially with time, reaching zero at the expiration date. At
expiration, where the option value is simply its intrinsic value, time
value is zero.
6/2015
Muhammad Nowfal S
MSN Institute of Management
29