Commodity and Derivatives Market – Revised TYBMS Syllabus 2016
Modules at a Glance
| SN | Modules | No. of Lectures |
| 1 | Introduction to Commodities Market and Derivatives Market | 15 |
| 2 | Futures and Hedging | 15 |
| 3 | Options and Option Pricing Models | 15 |
| 4 | Trading, Clearing & Settlement In Derivatives Market and Types of Risk | 15 |
| Total | 60 |
Commodity and Derivatives Market – Syllabus Overview
| SN | Modules/ Units |
| 1 | Introduction to Commodities Market and Derivatives Market |
| a) Introduction to Commodities Market :
• Meaning, History & Origin, Types of Commodities Traded, Structure of Commodities Market in India, Participants in Commodities Market, Trading in Commodities in India(Cash & Derivative Segment), Commodity Exchanges in India & Abroad, Reasons for Investing in Commodities b) Introduction to Derivatives Market: • Meaning, History & Origin, Elements of a Derivative Contract, Factors Driving Growth of Derivatives Market, Types of Derivatives, Types of Underlying Assets, Participants in Derivatives Market, Advantages & Disadvantages of Trading in Derivatives Market, Current Volumes of Derivative Trade in India, Difference between Forwards & Futures. |
|
| 2 | Futures and Hedging |
| a) Futures:
• Futures Contract Specification, Terminologies, Concept of Convergence, Relationship between Futures Price & Expected Spot Price, Basis & Basis Risk, Pricing of Futures Contract, Cost of Carry Model b) Hedging: • Speculation & Arbitrage using Futures, Long Hedge – Short Hedge, Cash & Carry Arbitrage, Reverse Cash & Carry Arbitrage, Payoff Charts & Diagrams for Futures Contract, Perfect & Imperfect Hedge |
|
| 3 | Options and Option Pricing Models |
| a) Options:
• Options Contract Specifications, Terminologies, Call Option, Put Option, Difference between Futures & Options, Trading of Options, Valuation of Options Contract, Factors affecting Option Premium, Payoff Charts & Diagrams for Options Contract, Basic Understanding of Option Strategies b) Options Pricing Models: • Binomial Option Pricing Model, Black – Scholes Option Pricing Model |
|
| 4 | Trading, Clearing & Settlement In Derivatives Market and Types of Risk |
| a) Trading, Clearing & Settlement In Derivatives Market:
• Meaning and Concept, SEBI Guidelines, Trading Mechanism – Types of Orders, Clearing Mechanism – NSCCL – its Objectives & Functions, Settlement Mechanism – Types of Settlement b) Types of Risk: • Value at Risk, Methods of calculating VaR, Risk Management Measures , Types of Margins, SPAN Margin |
Reference Books for Subject: Commodity and Derivatives Market
| Commodity and Derivatives Market |
| 1. John C. Hull & Basu -Futures, options & other derivatives
2. Robert McDonald, Derivatives market, Pearson education 3. John Hull, Fundamentals of futures & options 4. Ankit Gala & Jitendra Gala, Guide to Indian Commodity market, Buzzingstock publishing house 5. K.Sasidharan & Alex K. Mathews, Option trading – bull market strategies, McGraw Hill publication 6. Niti Chatnani, Commodity markets, McGraw Hill Publication 7. S.Kevin, Commodities & financial derivatives, PHI learning Pvt ltd 8. Suni K Parmeswaran, Futures & options, McGraw Hill |
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