Monday, May 17, 2010
Exotics
An exotic derivative is a derivative that cannot be created by putting together option and forward contracts. Instead the pay off of exotics is a complicated function of one or many underlyings.When procter and Gamble lost $ 160 million on derivatives in 1994 the main culprit was an exotic swap.The amounts P & G had to pay on the swap depended on the five year Treasury note yield and the price of the 30 year Treasury bond.Another example of an exotic derivative is a binary option.which pays a fixed amount if some condition is met. For instance, a binary option might pay $ 10 million if before a given future date one of the three largest banks has defaulted on its debt.
Sunday, May 9, 2010
DERIVATIVES SUMMARY
Nifty (May) future discount has decreased from 6.65 points to 4.75 points and 5.30 lakh shares were added in open interest.
Total open interest in the market was Rs116, 470 crore and Rs5, 452 crore were added in open interest.
Nifty call option added 26.50 lakh shares in open interest, whereas put option added 55.80 lakh shares in open interest.
Total open interest in the market was Rs116, 470 crore and Rs5, 452 crore were added in open interest.
Nifty call option added 26.50 lakh shares in open interest, whereas put option added 55.80 lakh shares in open interest.
GLOBAL INDICES THIS WEEK !
The encouraging US economic data failed to provide a floor to the market. There was massive sell-off around the globe, as the investors were more concern on the worries about the Greece bailout that would spread across the globe. Following this, Asian markets were dragged by a tumble on the Wall Street and were trading on an average of 1.30% down. The Indian markets are expected to open lower owing to the weak global cues. However, the market is expected to be volatile and remain on a negative bias for the day. The earnings of Lupin is later to be announced today, the stock will be eyed.
Daily trend of FII / MF investment in equities
On May 04, 2010, the foreign institutional investors (FIIs) were the net sellers of the Indian stocks to the tune of Rs236.10 crore, whereas the domestic mutual funds, on April 30, 2010, were the net buyers of the stocks to the tune of Rs304.80 crore.
Daily trend of FII / MF investment in equities
On May 04, 2010, the foreign institutional investors (FIIs) were the net sellers of the Indian stocks to the tune of Rs236.10 crore, whereas the domestic mutual funds, on April 30, 2010, were the net buyers of the stocks to the tune of Rs304.80 crore.
INDIAN INDICES THIS WEEK !
The European shares fell to a two-month closing low on Tuesday, as investors' confidence was rattled by growing concerns that a massive bailout for Greece may be insufficient in preventing a wider euro zone debt crisis.
Investors dumped US stocks on Tuesday in the Wall Street's worst session in three months on the fear that even with a bailout for Greece, Europe's debt crisis could spread to other weak euro zone countries.
In today's trade, the Asian markets were trading on a negative note. At the time of writing this report, SGX Nifty was trading 86 points lower. The Janpanese (Nikkei 225 index) and South Korean (Kospi index) markets are shut today.
Commodity cues
In the commodity space, the crude oil prices loss, with the Nymex light crude oil for the June series down by $3.45 per barrel, whereas in the metals space, the Comex Gold for the June series declined by $14.10 and the Comex Silver for the June series was down by $1 to a troy ounce respectively.
Investors dumped US stocks on Tuesday in the Wall Street's worst session in three months on the fear that even with a bailout for Greece, Europe's debt crisis could spread to other weak euro zone countries.
In today's trade, the Asian markets were trading on a negative note. At the time of writing this report, SGX Nifty was trading 86 points lower. The Janpanese (Nikkei 225 index) and South Korean (Kospi index) markets are shut today.
Commodity cues
In the commodity space, the crude oil prices loss, with the Nymex light crude oil for the June series down by $3.45 per barrel, whereas in the metals space, the Comex Gold for the June series declined by $14.10 and the Comex Silver for the June series was down by $1 to a troy ounce respectively.
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