MBA-234 DERIVATIVES MANAGEMENT (3.

5 Credits, 3-1-0) INTRODUCTION : Derivatives Definition -Types Forward Contracts Futures Contracts Options - Swaps Differences between Cash and Future Markets Types of Traders OTC and Exchange Traded Securities Types of Settlement Uses and Advantages of Derivatives Risk in Derivatives Cases. FUTURES CONTRACT : Specifications of Futures Contract Margin Requirements Marking to Market Hedging using Futures Types of Futures Contracts Securities, Stock Index Futures, Currencies and Commodities Delivery Options Relationship between Futures Prices, Forward Prices and Future Spot Prices. OPTIONS : Definition Exchange Traded Options, OTC Options Specifications of Options Call and Put Options - American and European Options Intrinsic Value and Time Value of Options Option payoff options on Securities, Stock Indices, Currencies and Futures Options pricing models Differences between future and Options contracts. SWAPS : Definition of SWAP Interest Rate SWAP Currency SWAP Role of Financial Intermediary Warehousing Valuation of Interest rate SWAPs and Currency SWAPS Bonds and FRNs Credit Risk. DERIVATIVES IN INDIA : Evolution of Derivatives Market in India Regulations Framework Exchange Trading in Derivatives Commodity Futures Contract Terminology and Specifications for Stock futures and Index futures in NSE- Contract Terminology and Specifications for Interest Rate Derivatives.

Mba ifm

FOREIGN EXCHANGE MARKET AND RISK MANAGEMENT: Environment of International Financial Management, Balance of Payments, Means of International Payments, Foreign Exchange Market, Currency Futures and Options Markets, Foreign Risk Management ,Exchange Risk, Political Risk ,Interest Rate Risk, Measuring and Managing Foreign Exchange Exposure, Practical Problems . FINANCING OF INTERNATIONAL OPERATIONS: Determination of Exchange Rate, Exchange Market and Arbitrage. Exchange rate Control, Financing of Exports and International Investments. International Monetary Systems, European Monetary System, International Monetary and Financial Institutions. FINANCIAL MANAGEMENT OF MNCS: Multinational Financial Management : Capital Budgeting decisions for Multinational Corporation, Financing Decisions Cost of Capital and Financial Structure, Working Capital Management and Control, International Transfer Pricing. Cases and Problems.