TYBFM Sem 5 Syllabus: Derivative Markets


If you are looking for TYBFM Sem 5 Syllabus of Derivative Markets, then your search ends here as we present the main units, chapters and topics covered in each unit.



Unit – I : Nature of Financial Derivatives including Futures & Options: Characteristics of Derivatives, Underlying assets (Equity Bonds/Loans, Foreign currency & Commodity), Need for Derivatives, Types of Derivatives & Comparison between  them, Forwards/Futures/Options, Participants in Derivatives Market (Hedgers, Speculators, Arbitrageurs).

Unit-II : Principles of Trading & Hedging with Index Futures

Terminology – Spot, future price, contract specifications, contract cycle, expiry date, settlement date, basis, mark to market, Contract specification for BSE Sensex, Tick date, types of orders, trading strategies, Hedging Strategies, Initial, Maintenance Margins, Executing & Clearing, Execution, Matching confirmation, Clearing Mechanism, Settlement price, Settlement cycle, cash vs. Physical delivery, “Open Interest” & “Trading Volumes”

Unit- III : Principles of Trading & Hedging with Options

Terminology – call, put, writer, buyer, premium, intrinsic value, time value, expiry date, settlement date, stock price, ATM, OTM & ITM, The Greeks -(Delta, Gamma, Theta, Vega)

Unit – IV : Risk Management Systems & Procedures

Types of Risks (Counter -party or credit risks, Market or price risks, liquidity risks, Legal & regulatory risks, Operating risks), Risk Identification & a measurement, Methods of risks control (Position Limits, VAR, Margins, operating Procedures & systems etc)  Separation of trading, settlement, accounting & risk control functions, Internal control structure & Management Information System, Regulatory & external reporting.

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