The sole purpose of the study is to understand and critically evaluate derivatives market and to study the various risk factors governing the market. Furthermore it is necessary to quantify the risk factors therein and suggest the measures thereon and to provide better advice to the client’s organization like Karvy Stock Broking Ltd. etc. In this research various tool are used to collect the data like by asking direct question and thorough discussion with topic to the respective member or expertise. The secondary data is collected by referring various books and journals, news channels etc. Researcher found that forward contract is customized contract between two entities where settlement take place and specified date in future at today’s prepared price. In future contract is an agreement between essential two parties’ buyer and seller, an asset at a certain time in future at a certain price. Furthermore in option there is call and puts options are gives buyer the right but not the obligation to buy a given quantity of the underlying assets, at a given price on or before a given future date in type of call option, in vice versa put option. The study draws a firm conclusion that there is a vast scope of derivatives in capital market as companies like Karvy Stock Broking Company provides better advice to the clients’ organization in this field.
Loading....