DERIVATIVES, MONEY & DEBT MARKET

Paper Code: 
BIE 332
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
12.00

Derivatives Market

Basics of derivatives, Features, Indian derivatives Market,  Market participants, 

Types of derivatives instruments, Economic Significance of derivatives, Products, and Functions.

Forward and Futures- Introduction, major future contracts,

Futures Trading Strategies: Hedging, Arbitration and speculation. Difference between forward and future contracts.

Options: Basics of options, Options payoff, Break Even Price and Trading Strategies- Spread-Bull, Bear and Butterfly, Straddle, Strangle, Strips & Straps,

Swaps: Meaning, Interest rate swaps, Currency Swaps

Derivative Trading, clearing and settlement mechanism in India.

 

12.00
Money Market

Introduction, Basic Characteristics of Money Market Securities, Money Market Intermediaries Treasury Bills, Types of T- Bills, Commercial papers, Commercial Bills, Certificates of Deposits, Call / Notice Money Market, , Money Market Mutual Funds,

Link between money market and monetary policy in India, Tools for Managing Liquidity in the money marke, Money market derivatives

 

12.00

Debt Market

Introduction, Basic characteristics of Debt Securities.

Private corporate Debt Market: product and participants, primary and secondary segment of corporate debt instrument.

Public sector undertaking bonds market: product and participants, primary and secondary market for debt instrument.

Government securities debt market: product and participants, primary and secondary market for debt instrument. Bond Valuation- Bond Price, YTM, YTC, current yield, spot interest rate, duration of bond.

Credit rating of Debt Securities. Trading, clearing and settlement mechanism of debt market

 

 

12.00

Security Analysis - Overview of Stock exchange and stock indices.

Fundamental Analysis: Meaning, objectives, Company Analysis, Industry Analysis and Economic Analysis.

Technical Analysis: Meaning, utility of Technical Analysis, Technical v/s Fundamental Analysis. Theories of Technical Analysis-Dow Theory, Elliot Wave Theory.

Tools and Techniques of technical Analysis: price and Volume charts, Bar charts, Line chart, Candlestick charts, Trend, Head and Shoulders, Support and Resistance level, Moving Average. Criticism or Weaknesses of Technical Analysis.

 

12.00

Portfolio Management, Risks and Returns: Concept of portfolio and portfolio management, Process of portfolio management, Types of portfolio management-Active portfolio management, Passive Portfolio Management, Defensive Portfolio management, Aggressive Portfolio Management, Income portfolio Management. Optimum Portfolio

Risk and Return – Concept, Total Risk and its components, Concept of Return, Measurement of Return-Realised return and Expected Return. An overview of Diversification of Risk. Financial Regulation

Securities and Exchange Board of India

Reserve Bank of India

Essential Readings: 
  • Pathak, Bharati V., Indian Financial System, Pearson Education, New Delhi.
  • Prafulla Kumar Swain, Financial Derivatives, Himalaya Publishing House.
  • Securities market and Products- Institute of Banking and Finance. Taxmann
  • M.R. Agarwal , Security Analysis and Portfolio Management -Garima Publications.
  • Bhole L.M., Financial Institutions and Markets, Tata Mc Graw Hill, New Delhi

 

References: 

SUGGESTED READINGS

  • Suyash N Bhatt , Security Analysis and Portfolio Management, -Biztantra publication.
  • Ravi M.Kishore, Strategic Financial Management, Taxmann’s Publication.
  • Williams, Michacls, Fundamentals of Option Markets, Mc Graw Hill, New Delhi
  • Hull, John, Introduction to Futures, Option market, Prentice Hall of India, New Delhi
  • Redhead, Keith, Financial Derivatives- An Introduction to futures, forwards,option and swaps, Prentice Hall of India, New Delhi

E- RESOURCES

JOURNALS

 

Academic Year: 
2023-2024
  • Printer-friendly version
  • PDF version