UNIT 1:
Importance of derivatives in financial markets
Definition and characteristics of derivatives
Evolution of derivative markets (India & Global)
Participants in derivative markets
Benefits and risks of derivatives
Role of derivatives in portfolio management
UNIT 2:
Features and structure of Futures & Forwards
Clearing house mechanism and settlement
Margin requirements and mark-to-market process
Index futures & commodity futures
Interest rate futures and applications
UNIT 3:
Types of options: Call and Put
Option trading strategies – basic
American vs. European Options
Intrinsic value and time value
Applications of Greeks in risk management
UNIT 4:
Introduction to Swaps Interest rate swaps – mechanics and examples
Case Study: Swap deal in Indian corporate
UNIT 5:
SEBI regulations on derivatives
RBI guidelines – IRFs and currency derivatives
Trading mechanisms and settlement procedures
Derivatives and financial market stability
Recent developments in Indian derivative markets