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    International Financial Management: Bapuji B-Schools Lake View Campus, SS Layout Davangere-577004

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    Arun Nijaguli
    This document discusses options and international financial management. It provides an executive summary on the growth of equity derivatives and how they can be used to reduce risks, expand customer offerings, trade profits, and manage capital costs. The study objectives are to analyze options in the Indian stock market, compare Black-Scholes model option prices to market prices, study time and intrinsic values of call options on Nifty, gain basic knowledge of derivatives and options, and analyze options as a profit-making strategy.

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    International Financial Management: Bapuji B-Schools Lake View Campus, SS Layout Davangere-577004

    Uploaded by

    Arun Nijaguli
    23 views3 pages
    This document discusses options and international financial management. It provides an executive summary on the growth of equity derivatives and how they can be used to reduce risks, expand customer offerings, trade profits, and manage capital costs. The study objectives are to analyze options in the Indian stock market, compare Black-Scholes model option prices to market prices, study time and intrinsic values of call options on Nifty, gain basic knowledge of derivatives and options, and analyze options as a profit-making strategy.

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    ARUN IFM

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    This document discusses options and international financial management. It provides an executive summary on the growth of equity derivatives and how they can be used to reduce risks, expand customer offerings, trade profits, and manage capital costs. The study objectives are to analyze options in the Indian stock market, compare Black-Scholes model option prices to market prices, study time and intrinsic values of call options on Nifty, gain basic knowledge of derivatives and options, and analyze options as a profit-making strategy.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    23 views3 pages

    International Financial Management: Bapuji B-Schools Lake View Campus, SS Layout Davangere-577004

    Uploaded by

    Arun Nijaguli
    This document discusses options and international financial management. It provides an executive summary on the growth of equity derivatives and how they can be used to reduce risks, expand customer offerings, trade profits, and manage capital costs. The study objectives are to analyze options in the Indian stock market, compare Black-Scholes model option prices to market prices, study time and intrinsic values of call options on Nifty, gain basic knowledge of derivatives and options, and analyze options as a profit-making strategy.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
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    You are on page 1of 3

    INTERNATIONAL FINANCIAL MANAGEMENT

    Subject code: 08MBAFM426

    Synopsis

    On

    “OPTIONS”

    Submitted to:

    GOPAKUMAR.K.NAIR

    Submitted by:

    Arun .I. Nijaguli (4BD09MBA07)

    Bapuji B-Schools
    Lake View campus, SS layout
    Davangere-577004
    Executive Summary
    Market deregulation, growth in global trade, and continuing technological developments have
    revolutionized the financial marketplace during the past two decades. A by-product of this revolution
    is increased market volatility, which has led to a corresponding increase in demand for risk
    management products. This demand is reflected in the growth of equity derivatives from the
    standardized futures and options products of the 1970s to the wide spectrum of over-the-counter
    (OTC) products offered and sold in the 1990s.

    Equity derivatives come in many shapes and forms, including futures, forwards, swaps,
    options, structured debt obligations and deposits, and various combinations thereof. Some are traded
    on organized exchanges, whereas others are privately negotiated transactions. Derivatives have
    become an integral part of the equity markets because they can serve several economic functions.
    Derivatives can be used to reduce business risks, expand product offerings to customers, trade for
    profit, manage capital and funding costs, and alter the risk-reward profile of a particular item or an
    entire balance sheet. These events serve as a reminder of the importance of understanding the various
    risk factors associated with business activities and establishing appropriate risk management systems
    to identify, measure, monitor, and control exposure.

    The study tries to understand the intrinsic value, Time value of an option and also compares
    the theoretical option price and market option price of selected option contracts.

    There have been various attempts in using Black and Schools option pricing model. We have
    discussed in this study the relationship between BSOPM price and market price which helps to
    investor to know the fair price of an option premium.

    This study can also be extended to other option contracts and hence forth find the option
    contract which give fair price of an option premium.
    Objective of the study:

     To study of options in Indian stock market.


     Comparison of BLACK AND SCHOOLS OPTION PRICING MODEL price of call with
    market price.
     To Study of time value and intrinsic value of call option in nifty.
     To study the basic knowledge about derivative market and options
     To study the option as a profit making strategy

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