Mcom Derivatives

8/11/2019 Mcom Derivatives.

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A PROJECT REPORT

ON

DERIVATIVES

SUBMITTED BY:

SHWETA .C. SAWANT

ROLL NO. : 48

MASTER OF COMMERCE

BANKING & FINANCE

PART I !"#$% "#$4

MODEL COLLEGE

DOMBIVLI

1


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INDEX

SR NO TOPIC

$ SUMMARY

" INTRODUCTION TO DERIVATIVES

% ORIGIN OF DERIVATIVES

4 HISTORY OF DERIVATIVES

' DEFINITION OF DERIVATIVES

( FACTORS CONTRIBUTING TO THE GROWTH OF

DERIVATIVES

) INDIAN DERIVATIVES MARKET

8 NEED FOR DERIVATIVES IN INDIA

* TYPES OF DERIVATIVES

$# CONTRACT TYPES OF DERIVATIVES

$$ ECONOMIC FUNCTION OF DERIVATIVES

$" USUAGE OF DERIVATIVES

$% BENEFITS OF DERIVATIVES

$4 NATIONAL COMMODITY AND DERIVATIVE E+CHANGE

$( DERIVATIVES, CAUTIOUS APPROACH TO INNOVATION

$) BANK AND DERIVATIVES

"$ DERIVATIVES RISK IN COMMERCIAL BANKING

%# CONCLUSION

%$ RECOMMENDATIONS AND SUGGESTIONS

%" BIBLIOGRAPHY

SUMMARY

2


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$. F13.". F=2=-3.%. O2/53.

4. S13.

A F1 952192 /3 1 2153192/5 /5 7/97 27-


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A -/012/0- /532=;-52 /3 1 952192


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16/9=@2=1@ 9;;/2/-3 ?=2=-3 !;1/5@ 61/5 2712 ?/32 61/5- 2192/5 13 0/1


7/40

T7- 7/32 ? -/012/0-3 /3 3=/3/56@ @56- 2715 712 ;32 -@- 27/5. S;- 2-23

-0-5 ?/5 27- -/32-59- ? 27- 971192-/32/93 ? -/012/0- 9521923 /5 /59/-523 ?

M171


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A -/012/0- /3 3-9=/2 73- /9- /3 --5-52 =5 -/0- ?; 5- ;-

=5-@/56 133-23. T7- -/012/0- /23-@? /3 ;--@ 1 952192


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F1923 952/


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1/@.

T7/3 /9- 0@12/@/2 /3 =37- 27- =3- ? -/012/0-3 @/- ?=2=-3 15 2/53

/59-13/56@ 13 27-3- /532=;-523 915


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I5/1 61/5- ;;-52=; /5 27- @132 ?- -13 =- 2 @/


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$4 D-9-;


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I5 @-33 2715 27-- -91-3 ? 27-/ 9;/56 /52 06=- -/012/0-3 ;1-23 710-


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TYPES OF DERIVATIVES MAR0ET

E97156- T1- D-/012/0-3 0- 27- C=52-

D-/012/0-3

N12/51@ S29 E97156- B;


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Exchange-traded derivative

A- 273- -/012/0-3 /532=;-523 2712 1- 21- 0/1 3-9/1@/- -/012/0-3 -97156-3

27- -97156-3. A -/012/0-3 -97156- /3 1 ;1-2 7-- /5/0/=1@3 21-

32151/- 9521923 2712 710-


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Oer T(e Co3&er Deriaie*

A- 9521923 2712 1- 21- !15 /012-@ 5-62/12- /-92@


18/40

S;- ? 27- 9;;5 01/1523 ? -/012/0- 9521923 1- 13 ?@@3:

$. F13: A 21/@- 952192


19/40

(. S13 : A- 9521923 2 -97156- 9137 !?@3 5


20/40

?-33- ?=2=- @-0-@. T7- -/012/0-3 ;1-2 -@912-3 /3 ?; 27- -@- 7

-?- /3 10-3/52 27- -@- 7 710- 15 1-2/2- ? /3.

". T7- /52/53/9 512=- ? -/012/0-3 ;1-2 1339/12-3 27-; 2 27- =5-@/56 S2

;1-2. D=- 2 -/012/0-3 27-- /3 1 953/-1


21/40

T 0/- @-0-16-! 6-1/56 3=97 2712 1 3;1@@ ;0-;-52 /5 27- =5-@/56

01@=- 915 91=3- 1 @16- /??--59- /5 27- 01@=- ? 27- -/012/0-.

T 3-9=@12- 15 ;1- 1 ?/2 /? 27- 01@=- ? 27- =5-@/56 133-2 ;0-3 27- 1

27- --92 !-.6. ;0-3 /5 1 6/0-5 /-92/5 3213 /5 =2 ? 1 3-9/?/- 156-

-197-3 1 9-21/5 @-0-@.

T 7-6- ;/2/612- /3 /5 27- =5-@/56


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D-/012/0- ;1-23 7-@ /50-323 /5 ;15 /??--52 13:

$ RISK MANAGEMENT, F=2=-3 15 2/53 952192 915


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4 MARKET EFFICIENCY, T7- 101/@1


24/40

? C;;-59-;-52 ? B=3/5-33 5 * M1 "##%. I2 713 9;;-59- /23 -12/53 5 $'

D-9-;


25/40

27- I5/15 =32


26/40

1 9-21/5 =152/2 ? 15 =5-@/56 133-2 12 1 3-9/?/- /9- 5


27/40

T7- 9-521@


28/40

T7- 91=2/=3 122/2=- ? 27- -6=@122712 -/012/0-3 1- =3- ? 7-6/56 15 52

3-9=@12/5/3 7-@/56 2 31?-6=1 27- ?/5159/1@ 332-;


29/40

/3. D-2-;/5/56 7-27- 16-523 1- 7-6/56 3-9=@12/56 /3 52 1 3/;@- ;122-


30/40

B13@- C;;/22-- 5 B15/56 S=-0/3/5 !$**%1


31/40

?/- /52--32 12- 5 27- 31;- /59/1@. T7- 52/51@ /59/1@ /3 5-0- -97156-. B

950-52/5 /52--32 12-3 /5 1 31 1- 3-2 3 2712 27- 31 713 1 - ;1-2 01@=- 12

/5/2/12/5. I? 27-- 1- =5152/9/12- 97156-3 /5 /52--32 12-3 27- ;1-2 01@=- ? 1 31

/@@ 97156-


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=3- 2 91@9=@12- 27- 9137 ?@ !


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Ba&) i& S(or Po*iio&9 Pa!* Floai& a&- Receie* Fi4e-

Ba&) i& He-e- Po*iio&

33

7.15%

6- MONTH

BANK COUNTERPARTY

6- MONTH

LOBOR

7.25%

6-MON

LIBOR

6-

MON

Figure 3

Fi ure


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F/6=- $ 0/-3 -1;@-3 ? 1 31. W- -?/5- 1 31 12/9/152 13 @56 /? 27-

12/9/152 13 1 ?/- 12- 15 -9-/0-3 1 ?@12/56 12-. T7- 2 15-@ 373 1


35/40

T7- ;1> /33 ?; 313 /59@=- 273- 2712 1- 9;;5 2 1@@ ?/- /59;- 3-9=/2/-3.

I52--32,12- /3 -/323


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Derivatives activity at commercial banks, as measured by total notional values of over $56 trillion

as of December 31, 2002, continues to grow dramatically. Derivatives serve an essential role in

te !.". and world economies but also #resent certain risks to te de#osit insurance funds.

Deriaie*9 W(a T(e! Are a&- (e Role T(a T(e! Hae i& (e Eco&o2!

D-/012/0-3 1- ?/5159/1@ /532=;-523 9521923 /27 01@=-3 2712 1- @/5- 2

-/0- ?; 27- -?;159- ? =5-@/56 ?/5159/1@ /532=;-523 /52--32 12-3

9=-59 -97156- 12-3 /5--3. I5 1 3/;@/?/- 3-53- 1 -/012/0- @/53 /23 7@- 2

27- /33 15 -13 ? 5/56 15 =5-@/56 ?/5159/1@ /532=;-52 /27=2 192=1@@

5/56 27- ?/5159/1@ /532=;-52.

D-/012/0-3 1- /;2152 2 27- ?/5159/1@ ;1-23 15 27- @ -95;


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D-/012/0- /3 6/56 0- ?132 /5 27- I5/15 -95;. T7- 2=50- ? -/012/0- ;1-2

/3 /59-13/56 -1


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D-/012/0-3 710- 3=5 -95;/9 15 9;;-9/1@


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$ F/32 /532/2=2/53 37=@ 0/- ?/5159/1@ 3212-;-52 =3-3 /27 1 9@-1 /92=- ? 27-/

21/56 15 -/012/0-3 192/0/2/-3. T7- 37=@ /39@3- ;-15/56?=@ 3=;;1 /5?;12/5


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O2/53 ?=2=-3 15 27- -/012/0-3

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