age

sum assured

25
500000

year

annual premium
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25

-26000
-26000
-26000
-26000
-26000
-26000
-26000
-26000
-26000
-26000
-26000
-26000
-26000
-26000
-26000
-26000
-26000
-26000
-26000
-26000
-26000
-26000
-26000
-26000
-26000

age
SA
years
1
2
3
4
5
6
7
8
9

10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25

d swaroop comtt.

salary
yrs.to Retirement
ann. Salary increase
annual invest RoR

500000
30
5%
12%

cost of marriage today

daughters age today
mariage age
years to marriage
inflation
future cost of marriage
investment ROR
SIP

800000
2
25
23
8%
4,697,170.92
12%
3,188.72
A

pv
pmt
nper
fv

740,864.26
0
5
$1,345,926.70
1,345,925.65

SIP
age today
retirement age
years
investment ROR
future value

foto
pan card xerox
address proof
cathch me if u can

1000
22
60
38
13%
$12,606,421.08

DERIVATIVES
income-exps=savings
income-investment=exps
derivatives are contracts on some underlines.
CBOT=chicago board of trade
NISM-Series 8

10 chapters

Lot Size (gm)

date

100
gold price
Rs.10/gm
2-Sep-09
2-Sep-09
3-Sep-09
4-Sep-09
5-Sep-09
7-Sep-09
8-Sep-09
9-Sep-09
10-Sep-09
11-Sep-09
12-Sep-09
14-Sep-09
15-Sep-09
16-Sep-09
17-Sep-09
18-Sep-09
19-Sep-09
21-Sep-09
22-Sep-09

15130
15204
15519
15770
15736
15739
15731
15728
15659
15709
15814
15838
15797
15879
15917
15861
15838
15822
15782

long
buy @
Hedging
CMP
MtM

cash
532
874
342
Short Cash
368
342
-32

long cash
cmp

100
300

long cash
CMP

12000
17000
4000

speculation
nifty spot
lot size
contract value
initial margin
initial margin(Rs.)
arbitrage-risk free profit
cash
buy @ 35 sell @ 47
cash

8500
25
212500
10%
21250

35

-5
0
5
12
15

1. Futures Payoffs

long @
"----------"
Long Future Payof

CMP@Expiry
50
60
70
80
90
100
110
120
130
140
150

-50
-40
-30
-20
-10
0
10
20
30
40
50
300
8500
9000

XYZ
after 1 month

premium
premium paid

CMP @ expiry
8000
8100
8200
8300
8400
8500
8600
8700
8800
8900
9000
call option
chair

-100
-100
-100
-100
-100
-100
-100
-100
-100
-100
-100
buyer of the option gets the right to buy the underlying
option buyer pays premium

8500
BUY
premium

seller of the option has the obligation to sell the underlying to the buyer
option seller recieves premium
7000

CMP of chair today

8000
9000

nifty
call options

8500
closing price
8600
8700

8800 nifty jul CE

8900
9000
research & development / semi conductor
name of the companies working under these 2 sectors

long
futures
call options

obligation
right to buy

Put options

x
CMP @ Expiry

8500
premium paid
8000
8100
8200
8300
8400
8500
8600
8700
8800
8900
9000

call

-100
-100
-100
-100
-100
-100
-100
-100
-100
-100
-100

strike
1000
100
5

7500
8500
9500

CMP
Short call
short put
long futures

8500
8900
8000
8700

CMP
X

8500
7500
ITM
OTM
Eq. Derivatives course structure

NISM series 8
100 questions
2 hours
chapters

Eq. derivatives
1mark each

topic
1 basic of derivatives
2 understanding index
3 introduction to forwards and futures
4 introductions to options
5 option trading strategies
6 introduction to trading systems
7 introduction to clearing and settlement system
8 legal and regulatory environment
9 accounting and taxation
10 sales practises and investor protection services

term
premium

25
26000
money back

75000

75000

75000

75000

850000

30 term
500000 annual Pre.
annual premiun
-26000
-26000
-26000
-26000
-26000
-26000
-26000
-26000
-26000

6.66%

12%

net flow

20000
20000
20000
20000
20000
20000
20000
20000
20000
20000
20000
20000
20000
20000
20000
20000
20000
20000
20000
20000
20000
20000
20000
20000
20000
20000

-26000
-26000
-26000
-26000
49000
-26000
-26000
-26000
-26000
49000
-26000
-26000
-26000
-26000
49000
-26000
-26000
-26000
-26000
49000
-26000
-26000
-26000
-26000
824000

25
26000
Money Bck

75000

6.66%

net flow
-26000
-26000
-26000
-26000
49000
-26000
-26000
-26000
-26000

-26000
-26000
-26000
-26000
-26000
-26000
-26000
-26000
-26000
-26000
-26000
-26000
-26000
-26000
-26000
-26000

75000

75000

75000

850000

year

49000
-26000
-26000
-26000
-26000
49000
-26000
-26000
-26000
-26000
49000
-26000
-26000
-26000
-26000
824000

sum of pv. V
Fv= pv*(1+r)^n
6112446.69
salary
pr.value
corpus
1
500000
446428.57
6112446.69
2
525000
418526.79
6345940.29
3
551250
392368.86
6582453.13
4
578812.5
367845.81
6821097.50
5
607753.125
344855.44
7060816.70
6 638140.78125
323301.98
7300361.58
7 670047.820313
303095.61
7538264.19
8 703550.211328
284152.13
7772808.07
9 738727.721895
266392.62
8001994.83
10 775664.107989
249743.08
8223506.49
11 814447.313389
234134.14
8434663.16
12 855169.679058
219500.76
8632375.42
13 897928.163011
205781.96
8813090.79
14 942824.571162
192920.59
8972733.53
15 989965.79972
180863.05
9106636.98
16 1039464.08971
169559.11
9209467.61
17 1091437.29419
158961.67
9275139.64
18 1146009.1589
149026.56
9296719.10

19
20
21
22
23
24
25
26
27
28
29
30

800000
2
25
23
8%

800000
2
25
23
8%

7%

8%

B
263,025.93
15000
5
$1,237,295.50

1203309.61685
1263475.09769
1326648.85257
1392981.2952
1462630.35996
1535761.87796
1612549.97186
1693177.47045
1777836.34397
1866728.16117
1960064.56923
2058067.79769

139712.40
130980.38
122794.10
115119.47
107924.50
101179.22
94855.52
88927.05
83369.11
78158.54
73273.63
68694.03

9266316.23
9174964.57
9012485.22
8767334.59
8426433.45
7974975.10
7396210.23
6671205.49
5778572.68
4694165.05
3390736.70
1837560.53

position
profit/loss
per 10 gm
per lot

long
margin
Dr.

CCr.

balance

10
74
315
251
-34
3
-8
-3
-69
50
105
24
-41
82
38
-56
-23
-16
-40

740
3150
2510
-340
30
-80
-30
-690
500
1050
240
-410
820
380
-560
-230
-160
-400

2-Sep-09
22-Sep-09

-12000
18520
6520
54.33%

profit
ROI

F=S+C
c=0

12000
740
3150
2510
340
30
80
30
690
500
1050
240
410
820
380
560
230
160
400

-12000
-12740
-15890
-18400
-18060
-18090
-18010
-17980
-17290
-17790
-18840
-19080
-18670
-19490
-19870
-19310
-19080
-18920
-18520

F=S
short

CMP

futures
F=S+C

days

874 C=0
F=S
long futures
Total
900
-26
874
0
500
374

Expiry

342
342
342

short future
300
200
300
400

short future
17000
16000
17000
18000
long futures
nifty
profit
total profit
ROI

short futures
8700
8000
200
500
5000
12500
23.53%
58.82%

futures

47

F-S

Futures
30
35
40
47
50

net P/L
17
12
7
0
-3

12
12
12
12
12

(6 types)
100
"++++++++"
Short Future Payof
50
40
30
20
10
0
-10
-20
-30
-40
-50

unlimited profits
unlimited losses

Futures

unlimited profits
limited losses

options

sell at higher pri balcony

I will buy
if I want to
I will sell
but first give me some money

100
Buy XYZ @
Sell XYZ @
Long call payof shor call payof
-8000
8000
-100
100
-8100
8100
-100
100
-8200
8200
-100
100
-8300
8300
-100
100
-8400
8400
-100
100
-8500
8500
-100
100
-8500
8600
0
0
-8500
8700
100
-100
-8500
8800
200
-200
-8500
8900
300
-300
-8500
9000
400
-400

e underlying

l the underlying to the buyer

more

100
less

short
obligation
obligation to sell

premium
Buy @

100
sell @
-8000
-8100
-8200
-8300
-8400
-8500
-8600
-8700
-8800
-8900
-9000

put
100

long put payof short put payof

8500
400
-400
8500
300
-300
8500
200
-200
8500
100
-100
8500
0
0
8500
-100
100
8600
-100
100
8700
-100
100
8800
-100
100
8900
-100
100
9000
-100
100

marks
8
2
25
25
3
4
13
15
3
2

 142,303.78

75000

67,303.78

260,916.04

75000

185,916.04

469,951.37

75000

394,951.37

838,343.04

75000

763,343.04

1,487,575.03

850000

637,575.03

insurance co. gives return @this rate

12%

20000
20000
20000
20000
20000
20000
20000
20000
20000

142,303.78

75000

67,303.78

20000
20000
20000
20000
20000
20000
20000
20000
20000
20000
20000
20000
20000
20000
20000
20000

amount

260,916.04

withdraw
6845940.29
500000
7107453.13
525000.00
7372347.50
551250.00
7639629.20
578812.50
7908114.71
607753.13
8176404.97
638140.78
8442855.89
670047.82
8705545.04
703550.21
8962234.21
738727.72
9210327.26
775664.11
9446822.74
814447.31
9668260.47
855169.68
9870661.69
897928.16
10049461.55
942824.57
10199433.41
989965.80
10314603.73
1039464.09
10388156.40
1091437.29
10412325.39
1146009.16

75000

10378274.18
10275960.31
10093983.44
9819414.74
9437605.46
8931972.11
8283755.46
7471750.15
6472001.40
5257464.86
3797625.10
2058067.80

1203309.62
1263475.10
1326648.85
1392981.30
1462630.36
1535761.88
1612549.97
1693177.47
1777836.34
1866728.16
1960064.57
2058067.80

Chart Title