More Related Content Similar to Derivatives (20) Derivatives18. DERIVATIVES DIFFERENCES BETWEEN FORWARD CONTRACT AND FUTURES 15 % TO 30 % NIL MARGIN ON THE EXCHANGES OVER THE COUNTER TRADING NONE MAY EXIST COUNTERPARTYLIQUIDITY RISK STANDARD FLEXIBLE MATURITY STANDARD FLEXIBLE AMOUNT FUTURES FORWARD CONTRACT 47. DERIVATIVES 47.61 % 24000 50400 FUTURES 7.14 % 24000 336000 DELIVERY RETURN PROFIT Rs. INVESTMENT Rs. STRATEGY 74. INR / USD OPTIONS PREMIUM QUOTATIONS 0.25 0.10 0.04 0.01 PUT 0.60 0.48 O.39 0.33 CALL 49.00 48.25 47.75 47.50 STRIKE PRICE 12M 6M 3M 1M EXPIRY (INR / $) premium 78. View of currency View of risk Action Very bullish Risk averse Buy currency forward Very bullish Risk tolerant Buy currency forward Bullish Risk averse Buy currency forward Bullish Risk tolerant Buy atm call Flat market Risk averse Buy ootm call Flat market Risk tolerant Do nothing * No view Risk averse Buy atm call No view Risk tolerant Do nothing * Bearish Risk averse Buy ootm call Bearish Risk tolerant Do nothing * Very bearish Risk averse Buy far ootm call Very bearish Risk tolerant Do nothing *