CHAPTER - 1

DERIVATIVES

INTRODUCTION:

In finance, a derivative security or derivative is a contract which specifies the right or obligation
between two parties to receive or deliver future cash flows (or exchange of other securities or assets)
based on some future event.

Another way of defining a derivative is that it is a security whose value is determined (derived)
from one or more other securities, commodities, or events. The value is influenced by the features of
the derivative contract, which may include the timing of the contract fulfilment, the value of the
underlying security or commodity, and other factors such as volatility.

The payments between the parties may be determined by the future changes of:

 the price of some other, independently traded asset in the future (e.g., a common stock)

 the level of some index (e.g., a stock index or heating-degree-days)

 the occurrence of some well-specified event (e.g., a company defaulting)

Some derivatives are the right to buy or sell the underlying security or commodity at some point
in the future for a predetermined price. If the price of the underlying security or commodity moves into
the right direction, the owner of the derivative makes money; otherwise, they lose money. Depending
on the definition of the contract, the potential loss or gain may be much higher than if they had traded
the underlying security or commodity directly.

Derivatives are securities whose values derived from underlying asset. The underlying asset could
be price of the traded securities, copper, price of gold copper, derivatives allow you to manage the risk
more efficiently by unbundling these risk and allowing hedging or taking risk only one time. Derivatives
transaction is defined as a bilateral contract, whose value is derived from the value of an underlying
asset or reference rate, or index. Derivatives transitions have evolved in the past twenty years to cover
abroad range of  products which include instruments like   ‘Forwards’, ‘Futures’, ‘Options’, ‘Swaps’
covering a broad spectrum of underlying assets including exchange rates, interest rates, commodities
and equities”.

NEED OF THE STUDY

Now a day these financial instruments are booming and these are efficient financial instruments by
the financial advisors to hedge risk. These are also proved practically as efficient financial instruments to
reduce risk. Now a day these derivatives are in emerging stage in India. So there is a lot of scope to
develop more in this derivative market. Some uneducated people are unaware of this. So we have to
aware of them about this to develop market. As a finance people we have to develop more advanced
techniques to reduce the risk so that we can provide efficient financial with low risk in this recession
period. These types of instruments will reduce the effect of recession on market by attracting the
investors with low risk. An Investor can choose the right underlying or portfolio for investment which
risk free.

 The study would explain how risk in cash market can be compensated with futures and
options.
 The study elucidates the role of futures and options in Indian financial markets.
OBJECTIVES OF THE STUDY

 To study the role of derivatives in Indian financial markets.

 To study the functioning of futures and options in financial market.

 To know what are the payoffs of futures & options.

 Trading of futures and options in stock exchange.

 Clearing and settlements of futures and options.

 To study various trends in market.

METHODOLOGY

The following are the steps involved in the study.

 Primary data: The data has been collected through Min Max Investment Advisor Foundation,
project guide, and stock brokers.

 Secondary Data Collection: The data of the secondary data has been collected from the “The
Economic Times” and the www.nse.india.com. The period of data collection in 45days.

Selection of the script:

The index selection is done on a random and the indexes selected from NSE. The lot size and
index selected for futures and options is NIFTY lot size is 50, BANKNIFTY lot size 25, CNXIT lot size is 50
and NIFTYMCAP50 lot size is 75. Profitability position of the futures buyer and seller and also the option
writer is studied.
LIMITATIONS OF THE STUDY

The following are the limitation of this study.

 The scope of the study is limited to Indian markets only.

 The study is confined to trading of February month contract.

 This limited period of study, the study may not be detailed and full- fledged in all aspects.
 The study does not provide any predictions or forecast of the selected scripts.

 The study conducted within a period of 45 days.

CHAPTER - 2
 INDUSTRY PROFILE

NATIONAL STOCK EXCHANGE

The National Stock Exchange (NSE) of India became operational in the capital market segment
on 3rd November1994 in Mumbai. The genesis of the NSE lies in the recommendations of the pertains
committee 1991. Apart from the NSE, it had recommended for the establishment of national stock
market system also. The committee pointed out some major defects in the Indian stock market. The
Defects specified are

1. Lack of liquidity in most of the markets in terms of depth and breadth.

2. Lack of ability to develop markets for debts.

3. Lack of infrastructure facilities and outdated trading system.

4. Lack of transparency in the operations that effect investor’s confidence.

5. Outdated settlement systems that are inadequate to cater to the growing volume, leading to
delays.

6. Lack of single market due to the inability of various stock exchanges to function cohesively with
legal structure and regulatory framework.

These factors led to the establishment of the NSE.

OBJECTIVES:

1) To establish a nationwide trading facility for equities, debt instruments and hybrids, to
meet current international standards of securities market.
 2) To ensure equal access to investors all over the country through appropriate
communication network.

3) To provide a fair, efficient and transparent securities market to investors using an

electronic communication network.

4) To enable shorter settlement cycle and book entry settlement system.

PROMOTERS:

 Industrial Development Bank of India (IDBI)

 Industrial Credit and Investment Corporation of India (ICICI)
 Industrial Financing Corporation of India (IFCI)
 Life Insurance Corporation of India (LIC)
 State Bank of India (SBI)
 General Insurance Corporation (GIC)
 Bank of Baroda
 Canara Bank
 Corporation Bank
 Indian Bank
 Oriental Bank of Commerce
 Union Bank of India
 Punjab National Bank
 Infrastructure Leasing and Financial Services
 Stock Holding Corporation of India
 SBI capital market

MEMBERSHIP:

The membership is based on the factors as capital adequacy, corporate structure, Track record,
Education, Experience etc. Admission is a two-stage process with applicants required to go through a
written examination followed by an interview. A committee consisting of experienced professionals from
the industry, to assess the applicant’s capability to operate as an exchange member. The exchange
admits members separately to wholesale debt Market (WDM) segment and the Capital market segment.
Only corporate members are admitted to the debt market Segment whereas individuals and firms are
also eligible to the capital market segment.

Eligibility criteria for trading membership on the segment of WCM are as follows:

1. The person eligible to become trading members are bodies corporate, companies,
institutions including subsidiaries of banks engaged in financial services and such other
persons or entities are may be permitted from time to time by RBI\SEBI.
2. The whole-time Directors should possess at least two years experience in any activity
related to banking or financial services.
3. The applicant must be engaged solely in the business of the securities and must not be
engaged in any fund-based activities.
4. The applicant must possess a minimum of Rs.2crores.

Eligibility criteria for the capital market segment are:

 Individual, registered firms, corporate bodies, companies and such other persons may be
permitted under the SCR Act, 1957.
 The applicant may be engaged in the business of securities and must not be engaged in
any fund-based activities.
 The minimum net worth requirements prescribed are as follows:

 Individuals and registered firms-Rs.75Lakhs.

 Corporate bodies-Rs100Lakhs

 In case of partnership firm each partner should contribute at least 5% of the net worth
of the firm.

 A corporate trading member should consist only of individuals (maximum of 4) who

should directly hold at least 40% of the paid-up capital in case of listed companies and at
least 51% in case of these companies.
  The minimum prescribed qualification of graduation and two years experience of
handling securities as broker, Sub-broker, authorized assistant etc., must be fulfilled by
 Minimum two directors in case the applicant are a corporate.
 Minimum two partners in case of partnership firms.

In case of individual or sole proprietary concerns. The two experienced directors in a corporate
applicant or trading member should hold minimum 5% of the capital of the company.

NSE-NIFTY

The national Stock Exchange on April 22, 1996 launched a new Equity Index. The NSE-50. The
new Index which replaces the existing NSE-100 Index is expected to serve as an appropriate Index for
the new segment of futures and options.

“Nifty” means National Index for Fifty Stock.

The NSE-50 comprises 50 companies that represent 20 broad Industry groups with an
aggregate market capitalization of around Rs.170000crores. All companies included in the index have a
market capitalization in excess of Rs.500crores each and should have traded for 85% of trading days at
an impact cost of less than 1.5%.

The base period for the index is the close of prices on Nov 3rd 1995 which makes one year of
completion of operation of NSE’s capital market segment. The base value of the Index has been set at
1000.

BOMBAY STOCK EXCHANGE

The Stock Exchange, Mumbai, Popularly as “Bombay Stock Exchange” (BSE) was established in
1875 as The Native Share and Stock Brokers Association”, as a voluntary non-profit making association.
It has evolved over the year into its present status as the premier Stock Exchange in the country. It may
be noted that the Bombay Stock Exchange is the oldest one in Asia, even older than the Tokyo Stock
Exchange, which was founded in 1878.

The Bombay Stock Exchange, while providing an efficient and transparent market for the trading
in securities upholds the interests of the investors and ensures redressed of their grievances, whether
against the companies or its own member-brokers. It also strives to educate and enlighten the investors
by making available necessary informative inputs and conducting investor education programs.

A Government Board comprising of 9 elected Directors (one third of them retire every year by
rotation), Two SEBI Nominees, Seven Public representatives and an Executive Director is the Apex Body,
which decides the policies and regulates the affairs of the Bombay Stock Exchange. The executive
Director as the Chief Executive Officer is responsible for the day-to-day administration of the Bombay
Stock exchange.

RECENT DEVELOPMENTS IN INDIAN STOCK MARKET

Many steps have been taken in recent years to reform the Stock Market such as:

 Regulation of Intermediaries.

 Changes in the Management Structure.

 Insistence on Quality Securities.

 Prohibition of Insider Trading.

 Transparency of Accounting Processes.

 Strict supervision of Stock Market Operations.

 Prevention of Price Rigging.

 Encouragement of Market Making.

 Discouragement of Price Manipulations.

  Introduction of Electronic Trading.

 Introducing of Depository System.

 Derivates Trading.

 International Listing.

COMPANY PROFILE

welcome to indiabulls group

Indiabulls Group is one of India’s top Business houses with businesses spread over Real Estate, Infrastructure, Financial
Services, Securities and Power sectors. The group companies are listed on important Indian and Overseas markets.
Indiabulls has been conferred the status of a “Business Superbrand” by The Brand Council, Superbrands India.

Indiabulls: The leading financial services and real estate development company offers online
trading, internet trading, stock trading, stock market related.

1.securities

Equity analysis

1. Equity research forms an integral part of the share trading experience. Equity research decides the stance one would
take in the share trading industry.

Forecasting scrip performance requires much more characteristics and skills than just advance arithmetical ability. It
requires split-hair analysis of the market. To do so one also needs to have excellent understanding of the market.

Supported by valid, fact-based and reliable research inputs and published results, our research desk picks out stocks,
analyzes its future scope and give a timely recommendation.

Kalpataru Power Transmissions Ltd

Kalpataru Power Transmission Limited (KPTL)’s revenue jumped 10.4% yoy in Q1’11 at Rs. 5.38 bn as against Rs. 4.87 bn
in the year-ago period. Net profit grew 26.1% yoy to Rs. 369 mn as against Rs. 292 mn in the year-ago period due to
improvement in operational efficiencies. We believe the Company would witness healthy order inflow in the coming quarters
owing to burgeoning demand in the EPC services (especially power). Besides, the Company has strong order book, which
provides.

Reliance Communications Ltd

Contrary to the popular belief (including ours until now) about RCom being a price warrior, we witness signs in the
marketplace that the company has taken steps to increase its prices. This is a significant positive for the industry and
reinforces our view that pricing power is coming back to GSM operators (refer our report dated 24 Sept. 2010). Due to
improving realisation, RCom’s mobile business is likely to turn around. We now expect revenue per cell site to increase from
`2.1mn in FY10.

2.Derivative Strategy

Today Nifty is likely to open gap up by around 15 points on the back of positive cues from Asian and US markets. After gap up opening expect
range bound in narrow range. However we could see profit booking in it in initial hours of trade after gap up opening. Thereafter Nifty could mo
level, where it may face mild resistance. If Nifty manages to breach 6120 level decisively then it could test mark of 6160 in short.....

Derivative End-of-Day Report

Nifty 6200, 6300 and 6400 call option witnessed accumulation of 7.94 (14.19%), 2.97 (5.77%) and 1.32 (3.01%) lac shares in open interest.
6000, 6100 and 6200 put options added 3.52 (4.21%), 6.62 (16.36%) and 5.91 (30.38%) lac shares in open interest. Significant increase in o
call and 6100 & 6200 puts indicates Nifty is likely trade in narrow range of 100 points in short term, probably in between.....
Currency Report

 1.The Rupee could strengthen because the greenback fell in overnight trade after the minutes of the US Federal Open Market
Committees Sep 21 meeting indicated quantitative easing steps to boost the US economy. The Rupees rise may trigger importers
forward dollar purchases and lift the forward premium rates.
 The dollar weakened to 1.3962 per Euro compared with 1.3817 on Tuesday following the release of the FOMC minutes of the Sep
21 meeting. According to a number of Fed.....

Agri Market Commentary 13 Oct 2010

 
2.The future prices of Spice complex ended higher while that of Oilseed and Guar ended lower.

      The Government has so far approved exports of 2.24 mln bales (1 bale = 170 kg) cotton during the current marketing
year that began Oct.....

End Market Commentary 13 Oct 2010 V

 
Markets started the day on firm note tracking cues from the global markets. Though, markets pared gains in the mid morning led by
      pressure, they recovered soon to surge smartly. Further, markets continued their strong rally in the afternoon session. Finally, markets clo
note near days .....

Mid Market Commentary 13 Oct 2010 V

 
Indian market got off to good start tracking firm global cues. Asian markets rose as the minutes from the Federal Reserve s latest m
expectation that US central bank will soon announce some quantity easing measures.  However, after a good start market did slip as in
     
jittery a day after the IIP data came in much lower than anticipated, raising concerns about the economic growth. Soon after hitting da
picked up in rate sensitive stocks on some easing rate.....

Pre Market Commentary 13 Oct 2010 V

 
Indian market is likely to open gap up marginally following positive cues from global markets which rose on hopes that the Federal Rese
      soon to boost U.S. growth.Thereafter, Nifty is likely to move range bound between 6,125 to 6,090 level. Break below 6,090 could drag N
to 6,030 level. However, sustaining above 6,125

 Commodities
 

Indiabulls Commodities Limited, a 100% subsidiary of Indiabulls Securities Limited, offers commodity brokerage services to
its customers. ICL is a registered Trading-cum-Clearing member of Multi Commodity Exchange of India Ltd. (MCX) and
National Commodity and Derivatives Exchange Ltd (NCDEX). These two Commodity Exchanges have shown a phenomenal
growth in trading volumes. Significant Trading and Arbitrage opportunities exist for informed players in the futures market.

ICL is the right partner for you if you are keen on tapping opportunities being presented by this nascent commodities
futures market. We offer a clearly differentiated product to our clients with a strong focus on research. Our commodities
research team has a rich research experience in the commodities markets. The specialized services provided by our
research team include daily intraday reports, reports on Agri-commodities & Metals, weekly & medium term market outlook
and arbitrage strategies.

Our retail branch network is one of the largest retail branch networks in the private financial services sector and provides
our customers with an unmatched distribution and service capability. Our flagship Indiabulls network, spread over more
than 250 Indiabulls offices in 80 cities, offers real-time prices, detailed data and news, intelligent analytics and electronic
trading capabilities, right at you fingertips.

ICL offers dedicated Relationship Manager to cater to all your trading related requirements. To provide the highest possible
quality of service, we provide full access to all our products and services through multiple channels.

2.FINANCIAL SERVICES

Indiabulls Home Loans

 
At Indiabulls Housing Finance Limited, we understand how special creating a new home is for you, and Indiabulls Home
Loans helps you lay the foundation for your dream home.

Consider yourself at home with Indiabulls Home Loans. While owning a house of one’s own is a cherished dream for most
individuals, it is also a major decision involving a large investment, a responsibility for which Indiabulls is ever ready to
provide the best financial help.

Indiabulls Home Loans helps you realize your ultimate dream of creating your own haven by a simple, sure and safe home
loan scheme. At Indiabulls, We understand how it feels to have a place to cherish as your own home.

The benefits of taking a Home Loan.

The income tax authorities look with favour upon those servicing a housing loan from specified financial institutions. And, it
is up to you to be wise enough to take advantage of this.
Let's start with Section 24 of the Income Tax Act.
Interest paid on capital borrowed for the acquisition, construction, repair, renewal or reconstruction of property is entitled
to a deduction. Rs 1,50,000 is the maximum amount eligible for deduction in the case of self-occupied property and for
Rented out property there is no limit of amount of deduction.
That brings us to Section 80C of the Income Tax Act.
You get a maximum Rs.1,00,000 deduction from the Income, on repayment of principal during a financial year. Stamp
duty, registration fee or other such expenses paid for the purpose of transfer of such house property to the assessee is
also considered under this amo

Commercial Credit Loans

 
At Indiabulls, we understand that expanding and growing your business is extremely essential for you. Indiabulls
Financial Services has opened financing doors for Promoters & Real Estate Developers.

Money makes your business go. A continuous supply of funds is required to enable the growth of any commercial
establishment. We offer you a flexible structured loan package to finance your commercial needs.

Indiabulls Commercial loans help to bridge gap in your CAPEX / working capital requirement. We can offer you a variety
of attractive borrowing options.

Whatever might be the reason for your financial requirement, we make sure that the commercial loan plan that we devise
for you is compatible with your requirement.

Key Features of Commercial Loans

 
1. Customized loan structuring
2. Tenor ranging from 3 months to 36 months  
3. Loan Size upto Rs. 300 Crores
4. Repayment – from the existing / projected cash flows.
5. Acceptable Security - Residential Property including farm houses / Commercial Property / Industrial Property /
Open land / Plots / shares in listed company.
6. Speedy Loan Approvals

Loans Against Property

 
Indiabulls brings to you Loan Against Property. You can now take a loan against your residential or commercial
property, to finance your business, plan a dream wedding, fund your child's education and much more.

You can depend on us to meet all your business/personal requirements. Finance your dreams with Loan
Against Property. You can use your self occupied residential property or commercial property to avail of Loans
Against Property.

Key Features of Loan Against Property

 
 Attractive Interest Rates.
 Tenure can range upto 15 year for Loan against Property .
 Easy Monthly repayment mode.
 Loans to salaried and self employed.
 Insurance Option available for your house loan.
 Speedy Loan Approvals

Commercial Vehicle Loans

Indiabulls Commercial Vehicle Loans offers commercial auto loans to a variety of business owners. We are a
preferred financer with first time buyers as well as fleet operators providing commercial vehicle loans with
simple documentation and quick results.

The Commercial Vehicle Finance provided by us helps the small and medium operators to acquire vehicles with
minimum hassle and documentation. We provide customized financing options to suit your needs.

Our strength lies in the quick completion of transactions, long association with transporters and the intimate
knowledge of the market and its nuances.
Our finance schemes are easy to understand with no hidden costs.

We assure you a quick, transparent and hassle-free deal.

1. Product Offering

 Finance for new commercial vehicles

 Finance for used vehicles
 Tractor Loans

2. Proposed Finance

 Tyre Funding
 Accidental Funding
 Engine Funding
 Take over loans
  Top up loan on existing loan with us

3. Features of Loan Offering

 Loan for up to 15 years old vehicles.

 The best loan offering in the market – up to 95% for used vehicles & 100% for new commercial vehicle
chassis
 Max tenure of upto 48 months for used vehicles 60 months for new commercial vehicle chassis
 Max tenure of upto 48 months for used vehicles 60 months for new commercial vehicle chassis
 Customized loan to suit your needs
 Door Step Services
 Easy Documentation
 Quick & Hassle free services
 Attractive Rate of Interest
 No intermediary or Direct Marketing Agent for loan processing

One Indiabulls Centre (One IBC) is the first high-end commercial development of its kind in Central Mumbai’s
emerging Central Business District. It is strategically located between Nariman Point and Bandra-Kurla Complex.

With its elegant design, integrated infrastructure facilities and central location, One IBC is destined to be a
landmark in Mumbai. It offers a unique opportunity for businesses to establish and enhance their presence in the
financial heart of India and be part of a world-class work environment created to house the most prestigious firms
from around the world.

The project covers an area of 10 acres. Tower One has 18 storeys and Tower Two has 20 storeys comprising of
two wings. The towers are atop a landscaped podium with two basements. All the blocks will have car parking
facilities in the basements and ground floors with a capacity of 3500 cars. The development will include a large
central landscaped plaza, fine dining restaurants, food courts, clubhouse and recreation areas, besides world-
class corporate offices.
CHAPTER - 3
 HISTORY OF DERIVATIVES

With the opening of the economy to multinationals and the adoption of the liberalized
economic policies, the economy is driven more towards the free market economy. The complex nature
of financial structuring itself involves the utilization of multi currency transactions. It exposes the clients,
particularly corporate clients to various risks such as exchange rate risk, interest rate risk, economic risk
and political risk.

With the integration of the financial markets and free mobility of capital, risks also multiplied.
For instance, when countries adopt floating exchange rates, they have to face risks due to fluctuations in
the exchange rates. Deregulation of interest rate cause interest risks. Again, securitization has brought
with it the risk of default or counter party risk. Apart from it, every asset whether commodity or metal
or share or currency is subject to depreciation in its value. It may be due to certain inherent factors and
external factors like the market condition, Government’s policy, economic and political condition
prevailing in the country and so on.

In the present state of the economy, there is an imperative need of the corporate clients to
protect their operating profits by shifting some of the uncontrollable financial risks to those who are
able to bear and manage them. Thus, risk management becomes a must for survival since there is a high
volatility in the present financial markets.
 In this context, derivatives occupy an important place as risk reducing machinery. Derivatives
are useful to reduce many of the risks discussed above. In fact, the financial service companies can play
a very dynamic role in dealing with such risks. They can ensure that the above risks are hedged by using
derivatives like forwards, future, options, swaps etc. Derivatives, thus, enable the clients to transfer
their financial risks to the financial service companies. This really protects the clients from unforeseen
risks and helps them to get there due operating profits or to keep the project well within the budget
costs. To hedge the various risks that one faces in the financial market today, derivatives are absolutely
essential.

DERIVATIVES IN INDIA

In India, all attempts are being made to introduce derivative instruments in the capital market.
The National Stock Exchange has been planning to introduce index-based futures. A stiff net worth
criteria of Rs.7 to 10 corers cover is proposed for members who wish to enroll for such trading. But, it
has not yet received the necessary permission from the Securities and Exchange Board of India.

In the forex market, there are brighter chances of introducing derivatives on a large scale. In
fact, the necessary groundwork for the introduction of derivatives in forex market was prepared by a
high-level expert committee appointed by the RBI. It was headed by Mr. O.P. Sodhani. Committee’s
report was already submitted to the Government in 1995. As it is, a few derivative products such as
interest rate swaps, coupon swaps, currency swaps and fixed rate agreements are available on a limited
scale. It is easier to introduce derivatives in forex market because most of these products are OTC
products (Over-the-counter) and they are highly flexible. These are always between two parties and one
among them is always a financial intermediary.
 However, there should be proper legislations for the effective implementation of derivative
contracts. The utility of derivatives through Hedging can be derived, only when, there is transparency
with honest dealings. The players in the derivative market should have a sound financial base for dealing
in derivative transactions. What is more important for the success of derivatives is the prescription of
proper capital adequacy norms, training of financial intermediaries and the provision of well-established
indices? Brokers must also be trained in the intricacies of the derivative-transactions.

Now, derivatives have been introduced in the Indian Market in the form of index options and
index futures. Index options and index futures are basically derivate tools based on stock index. They are
really the risk management tools. Since derivates are permitted legally, one can use them to insulate his
equity portfolio against the vagaries of the market.

Every investor in the financial area is affected by index fluctuations. Hence, risk management
using index derivatives is of far more importance than risk management using individual security
options. Moreover, Portfolio risk is dominated by the market risk, regardless of the composition of the
portfolio. Hence, investors would be more interested in using index-based derivative products rather
than security based derivative products.

Literature review

Derivative (finance)
A derivative is a financial instrument - or more simply, an agreement between two people or
two parties - that has a value determined by the price of something else (called the underlying).[1]
It is a financial contract with a value linked to the expected future price movements of the asset it
is linked to - such as a share, or a currency. There are many kinds of derivatives, with the most
notable being swaps, futures, and options. Derivatives are a form of alternative investment.

Referring to derivatives as stand-alone assets would be a misconception, since a derivative is

incapable of having value of its own. However, some more commonplace derivatives, such as
swaps, futures, and options, (which have a theoretical face value that can be calculated using
formulas, such as Black-Scholes), have been traded on markets before their expiration date as if
they were assets. Among the oldest of traded derivatives are rice futures, which have been traded
on the Dojima Rice Exchange since the year 1710.[
Categorization
Derivatives are usually broadly categorized by the:

 relationship between the underlying and the derivative (e.g., forward, option, swap)
 type of underlying (e.g., equity derivatives, foreign exchange derivatives, interest rate
derivatives, commodity derivatives or credit derivatives)
 market in which they trade (e.g., exchange-traded or over-the-counter)
 pay-off profile (Some derivatives have non-linear payoff diagrams due to embedded
optionality)

Another arbitrary distinction is between:[2]

 vanilla derivatives (simple and more common) and

 exotic derivatives (more complicated and specialized)

There is no definitive rule for distinguishing one from the other, so the distinction is mostly a
matter of custom.[citation needed]

Uses
Derivatives are used by investors to

 provide leverage or gearing, such that a small movement in the underlying value can
cause a large difference in the value of the derivative
 speculate and to make a profit if the value of the underlying asset moves the way they
expect (e.g., moves in a given direction, stays in or out of a specified range, reaches a
certain level)
 hedge or mitigate risk in the underlying, by entering into a derivative contract whose
value moves in the opposite direction to their underlying position and cancels part or all
of it out
 obtain exposure to underlying where it is not possible to trade in the underlying (e.g.,
weather derivatives)
 create option ability where the value of the derivative is linked to a specific condition or
event (e.g., the underlying reaching a specific price level)

Types of derivatives
OTC and exchange-traded

In broad terms, there are two distinct groups of derivative contracts, which are distinguished by
the way they are traded in the market:
  Over-the-counter (OTC) derivatives are contracts that are traded (and privately
negotiated) directly between two parties, without going through an exchange or other
intermediary. Products such as swaps, forward rate agreements, and exotic options are
almost always traded in this way. The OTC derivative market is the largest market for
derivatives, and is largely unregulated with respect to disclosure of information between
the parties, since the OTC market is made up of banks and other highly sophisticated
parties, such as hedge funds. Reporting of OTC amounts are difficult because trades can
occur in private, without activity being visible on any exchange. According to the Bank
for International Settlements, the total outstanding notional amount is $684 trillion (as of
June 2008).[6] Of this total notional amount, 67% are interest rate contracts, 8% are credit
default swaps (CDS), 9% are foreign exchange contracts, 2% are commodity contracts,
1% are equity contracts, and 12% are other. Because OTC derivatives are not traded on
an exchange, there is no central counter-party. Therefore, they are subject to counter-
party risk, like an ordinary contract, since each counter-party relies on the other to
perform.

 Exchange-traded derivative contracts (ETD) are those derivatives instruments that are
traded via specialized derivatives exchanges or other exchanges. A derivatives exchange
is a market where individuals trade standardized contracts that have been defined by the
exchange.[7] A derivatives exchange acts as an intermediary to all related transactions, and
takes Initial margin from both sides of the trade to act as a guarantee. The world's
largest[8] derivatives exchanges (by number of transactions) are the Korea Exchange
(which lists KOSPI Index Futures & Options), Eurex (which lists a wide range of
European products such as interest rate & index products), and CME Group (made up of
the 2007 merger of the Chicago Mercantile Exchange and the Chicago Board of Trade
and the 2008 acquisition of the New York Mercantile Exchange). According to BIS, the
combined turnover in the world's derivatives exchanges totaled USD 344 trillion during
Q4 2005. Some types of derivative instruments also may trade on traditional exchanges.
For instance, hybrid instruments such as convertible bonds and/or convertible preferred
may be listed on stock or bond exchanges. Also, warrants (or "rights") may be listed on
equity exchanges. Performance Rights, Cash xPRTs and various other instruments that
essentially consist of a complex set of options bundled into a simple package are
routinely listed on equity exchanges. Like other derivatives, these publicly traded
derivatives provide investors access to risk/reward and volatility characteristics that,
while related to an underlying commodity, nonetheless are distinctive.

Common derivative contract types

There are three major classes of derivatives:

1. Futures/Forwards are contracts to buy or sell an asset on or before a future date at a price
specified today. A futures contract differs from a forward contract in that the futures
contract is a standardized contract written by a clearing house that operates an exchange
where the contract can be bought and sold, whereas a forward contract is a non-
standardized contract written by the parties themselves.
 2. Options are contracts that give the owner the right, but not the obligation, to buy (in the
case of a call option) or sell (in the case of a put option) an asset. The price at which the
sale takes place is known as the strike price, and is specified at the time the parties enter
into the option. The option contract also specifies a maturity date. In the case of a
European option, the owner has the right to require the sale to take place on (but not
before) the maturity date; in the case of an American option, the owner can require the
sale to take place at any time up to the maturity date. If the owner of the contract
exercises this right, the counter-party has the obligation to carry out the transaction.
3. Swaps are contracts to exchange cash (flows) on or before a specified future date based
on the underlying value of currencies/exchange rates, bonds/interest rates, commodities,
stocks or other assets.

More complex derivatives can be created by combining the elements of these basic types. For
example, the holder of a swaption has the right, but not the obligation, to enter into a swap on or
before a specified future date.
Interest rate derivative
An interest rate derivative is a derivative where the underlying asset is the right to pay or
receive a notional amount of money at a given interest rate.

The interest rate derivatives market is the largest derivatives market in the world. The Bank for
International Settlements estimates that the notional amount outstanding in June 2009 [1] were
US$437 trillion for OTC interest rate contracts, and US$342 trillion for OTC interest rate swaps.
According to the International Swaps and Derivatives Association, 80% of the world's top 500
companies as of April 2003 used interest rate derivatives to control their cashflows. This
compares with 75% for foreign exchange options, 25% for commodity options and 10% for
stock options.

Types
These are the basic building blocks for most interest rate derivatives and can be described as
vanilla (simple, basic derivative structures, usually most liquid) products :

 Interest rate swap (fixed-for-floating)

 Interest rate cap or interest rate floor
 Interest rate swaption
 Bond option
 Forward rate agreement
 Interest rate future
 Money market instruments
 Cross currency swap (see Forex swap)

The next intermediate level is a quasi-vanilla class of (fairly liquid) derivatives, examples of
which are:

 Range accrual swaps/notes/bonds

 In-arrears swap
 Constant maturity swap (CMS) or constant treasury swap (CTS) derivatives (swaps, caps,
floors)
 Interest rate swap based upon two floating interest rates

Building off these structures are the exotic interest rate derivatives (least liquid, traded over the
counter), such as:

 Power Reverse Dual Currency note (PRDC or Turbo)

 Target redemption note (TARN)
  CMS steepener
 Snowball
 Inverse floater
 Strips of Collateralized mortgage obligation
 Ratchet caps and floors
 Bermudan swaptions
 Cross currency swaptions

Most of the exotic interest rate derivatives can be classified as having two payment legs: a
funding leg and an exotic coupon leg.(citation needed) A funding leg usually consists of series of
fixed coupons or floating coupons (LIBOR) plus fixed spread. An exotic coupon leg typically
consists of a functional dependence on the past and current underlying indices (LIBOR, CMS
rate, FX rate) and sometimes on its own past levels, as in Snowballs and TARNs. The payer of
the exotic coupon leg usually has a right to cancel the deal on any of the coupon payment dates,
resulting in the so-called Bermudan exercise feature. There may also be some range-accrual and
knock-out features inherent in the exotic coupon definition.

These structures are popular for investors with customized cashflow needs or specific views on
the interest rate movements (such as volatility movements or simple directional movements).

Modeling of interest rate derivatives (see Mathematical Finance) is usually done on a time-
dependent multi-dimensional tree built for the underlying risk drivers, examples of which are
domestic or foreign short rates and Forex rates
 Foreign exchange derivative
A Foreign exchange derivative is a financial derivative where the underlying is a particular
currency and/or its exchange rate. These instruments are used either for currency speculation and
arbitrage or for hedging foreign exchange risk. For detail see:

Foreign exchange option

In finance, a foreign exchange option (commonly shortened to just FX option or currency

option) is a derivative financial instrument where the owner has the right but not the obligation
to exchange money denominated in one currency into another currency at a pre-agreed exchange
rate on a specified date; see Foreign exchange derivative.

The FX options market is the deepest, largest and most liquid market for options of any kind in
the world. Most of the FX option volume is traded OTC and is lightly regulated, but a fraction is
traded on exchanges like the International Securities Exchange, Philadelphia Stock Exchange, or
the Chicago Mercantile Exchange for options on futures contracts. The global market for
exchange-traded currency options was notionally valued by the Bank for International
Settlements at $158,300 billion in 2005[citation
Credit derivative
In finance, a credit derivative is a securitized derivative whose value is derived from the credit
risk on an underlying bond, loan or any other financial asset. In this way, the credit risk is on an
entity other than the counterparties to the transaction itself.[1] This entity is known as the
reference entity and may be a corporate, a sovereign or any other form of legal entity which has
incurred debt.[2] Credit derivatives are bilateral contracts between a buyer and seller under which
the seller sells protection against the credit risk of the reference entity.[2]

Stated in plain language, a credit derivative is a wager, and the reference entity is the thing being
wagered on. Similar to placing a bet at the racetrack, where the person placing the bet does not
own the horse or the track or have anything else to do with the race, the person buying the credit
derivative doesn't necessarily own the bond (the reference entity) that is the object of the wager.
He or she simply believes that there is a good chance that the bond or collateralized debt
obligation (CDO) in question will default (go to zero value). Originally conceived as a kind of
insurance policy for owners of bonds or CDO's, it evolved into a freestanding investment
strategy. The cost might be as low as 1% per year. If the buyer of the derivative believes the
underlying bond will go bust within a year (usually an extremely unlikely event) the buyer stands
to reap a 100 fold profit. A small handful of investors anticipated the credit crunch of 2007/8 and
made billions placing "bets" via this method.

The parties will select which credit events apply to a transaction and these usually consist of one
or more of the following:

 bankruptcy (the risk that the reference entity will become bankrupt)
 failure to pay (the risk that the reference entity will default on one of its obligations such
as a bond or loan)
 obligation default (the risk that the reference entity will default on any of its obligations)
 obligation acceleration (the risk that an obligation of the reference entity will be
accelerated e.g. a bond will be declared immediately due and payable following a default)
 repudiation/moratorium (the risk that the reference entity or a government will declare a
moratorium over the reference entity's obligations)
 restructuring (the risk that obligations of the reference entity will be restructured)...

Where credit protection is bought and sold between bilateral counterparties, this is known as an
unfunded credit derivative. If the credit derivative is entered into by a financial institution or a
special purpose vehicle (SPV) and payments under the credit derivative are funded using
securitization techniques, such that a debt obligation is issued by the financial institution or SPV
to support these obligations, this is known as a funded credit derivative.

Credit derivative
In finance, a credit derivative is a securitized derivative whose value is derived from the credit
risk on an underlying bond, loan or any other financial asset. In this way, the credit risk is on an
entity other than the counterparties to the transaction itself.[1] This entity is known as the
reference entity and may be a corporate, a sovereign or any other form of legal entity which has
incurred debt.[2] Credit derivatives are bilateral contracts between a buyer and seller under which
the seller sells protection against the credit risk of the reference entity.[2]

Stated in plain language, a credit derivative is a wager, and the reference entity is the thing being
wagered on. Similar to placing a bet at the racetrack, where the person placing the bet does not
own the horse or the track or have anything else to do with the race, the person buying the credit
derivative doesn't necessarily own the bond (the reference entity) that is the object of the wager.
He or she simply believes that there is a good chance that the bond or collateralized debt
obligation (CDO) in question will default (go to zero value). Originally conceived as a kind of
insurance policy for owners of bonds or CDO's, it evolved into a freestanding investment
strategy. The cost might be as low as 1% per year. If the buyer of the derivative believes the
underlying bond will go bust within a year (usually an extremely unlikely event) the buyer stands
to reap a 100 fold profit. A small handful of investors anticipated the credit crunch of 2007/8 and
made billions placing "bets" via this method.

The parties will select which credit events apply to a transaction and these usually consist of one
or more of the following:

 bankruptcy (the risk that the reference entity will become bankrupt)
 failure to pay (the risk that the reference entity will default on one of its obligations such
as a bond or loan)
 obligation default (the risk that the reference entity will default on any of its obligations)
 obligation acceleration (the risk that an obligation of the reference entity will be
accelerated e.g. a bond will be declared immediately due and payable following a default)
 repudiation/moratorium (the risk that the reference entity or a government will declare a
moratorium over the reference entity's obligations)
 restructuring (the risk that obligations of the reference entity will be restructured)...

Where credit protection is bought and sold between bilateral counterparties, this is known as an
unfunded credit derivative. If the credit derivative is entered into by a financial institution or a
special purpose vehicle (SPV) and payments under the credit derivative are funded using
securitization techniques, such that a debt obligation is issued by the financial institution or SPV
to support these obligations, this is known as a funded credit derivative.

This synthetic securitization process has become increasingly popular over the last decade, with
the simple versions of these structures being known as synthetic CDOs; credit linked notes;
single tranche CDOs, to name a few. In funded credit derivatives, transactions are often rated by
rating agencies, which allows investors to take different slices of credit risk according to their
risk appetite
Types
Credit derivatives are fundamentally divided into two categories: funded credit derivatives and
unfunded credit derivatives. An unfunded credit derivative is a bilateral contract between two
counterparties, where each party is responsible for making its payments under the contract (i.e.
payments of premiums and any cash or physical settlement amount) itself without recourse to
other assets. A funded credit derivative involves the protection seller (the party that assumes
the credit risk) making an initial payment that is used to settle any potential credit events.
However, the protection buyer is exposed to the credit risk of the protection seller, in which case
the protection seller fails to pay the protection buyer under the event of the protection seller's
default. It is also known as counterparty risk

Equity derivative
In finance, an equity derivative is a class of derivatives whose value is at least partly derived
from one or more underlying equity securities. Options and futures are by far the most common
equity derivatives, however there are many other types of equity derivatives that are actively
traded.

o

Equity options
Main article: Option (finance)

Equity options are the most common type of equity derivative.[1] They provide the right, but not
the obligation, to buy (call) or sell (put) a quantity of stock (1 contract = 100 shares of stock), at
a set price (strike price), within a certain period of time (prior to the expiration date).

Warrants
Main article: Warrant (finance)

In finance, a warrant is a security that entitles the holder to buy stock of the company that
issued it at a specified price, which is much lower than the stock price at time of issue. Warrants
are frequently attached to bonds or preferred stock as a sweetener, allowing the issuer to pay
lower interest rates or dividends. They can be used to enhance the yield of the bond, and make
them more attractive to potential buyers.

Convertible bonds
Main article: Convertible bond

Convertible bonds are bonds that can be converted into shares of stock in the issuing company,
usually at some pre-announced ratio. It is a hybrid security with debt- and equity-like features. It
can be used by investors to obtain the upside of equity-like returns while protecting the downside
with regular bond-like coupons.

Equity futures, options and swaps

Investors can gain exposure to the equity markets using futures, options and swaps. These can be
done on single stocks, a customized basket of stocks or on an index of stocks. These equity
derivatives derive their value from the price of the underlying stock or stocks.

Stock market index futures are futures contracts used to replicate the performance of an
underlying stock market index. They can be used for hedging against an existing equity position,
or speculating on future movements of the index. Indices for futures include well-established
indices such as S&P, FTSE, DAX, CAC40 and other G12 country indices. Indices for OTC
products are broadly similar, but offer more flexibility.[vague]

Equity basket derivatives

Equity basket derivatives are futures, options or swaps where the underlying is a non-index
basket of shares. They have similar characteristics to equity index derivatives, but are always
traded OTC (over the counter, ie between established institutional investors),[dubious – discuss] as the
basket definition is not standardized in the way that an equity index is.

These are used normally for correlation trading.

Single-stock futures

Single-stock futures are exchange-traded futures contracts based on an individual underlying

security rather than a stock index. Their performance is similar to that of the underlying equity
itself, although as futures contracts they are usually traded with greater leverage. Another
difference is that holders of long positions in single stock futures typically do not receive
dividends and holders of short positions do not pay dividends. Single-stock futures may be cash-
settled or physically settled by the transfer of the underlying stocks at expiration, although in the
United States only physical settlement is used to avoid speculation in the market....

Equity index swaps

An equity index swap is an agreement between two parties to swap two sets of cash flows on
predetermined dates for an agreed number of years. The cash flows will be an equity index value
swapped, for instance, with LIBOR. Swaps can be considered as being a relatively
straightforward way of gaining exposure to an asset class you require. They can also be relatively
cost efficient.
Equity swap

An equity swap, like an equity index swap, is an agreement between two parties to swap two sets
of cash flows. In this case the cash flows will be the price of an underlying stock value swapped,
for instance, with LIBOR. A typical example of this type of derivative is the Contract for
difference (CFD) where one party gains exposure to a share price without buying or selling the
underlying share making it relatively cost efficient as well as making it relevantly easy to
transact.
Commodity market

Commodity markets are markets where raw or primary products are exchanged. These raw
commodities are traded on regulated commodities exchanges, in which they are bought and sold
in standardized contracts.

This article focuses on the history and current debates regarding global commodity markets. It
covers physical product (food, metals, electricity) markets but not the ways that services,
including those of governments, nor investment, nor debt, can be seen as a commodity. Articles
on reinsurance markets, stock markets, bond markets and currency markets cover those concerns
separately and in more depth. One focus of this article is the relationship between simple
commodity money and the more complex instruments offered in the commodity markets.

History
The modern commodity markets have their roots in the trading of agricultural products. While
wheat and corn, cattle and pigs, were widely traded using standard instruments in the 19th
century in the United States, other basic foodstuffs such as soybeans were only added quite
recently in most markets.[citation needed] For a commodity market to be established, there must be
very broad consensus on the variations in the product that make it acceptable for one purpose or
another.

The economic impact of the development of commodity markets is hard to overestimate.

Through the 19th century "the exchanges became effective spokesmen for, and innovators of,
improvements in transportation, warehousing, and financing, which paved the way to expanded
interstate and international trade."[citation needed]

Early history of commodity markets

Historically, dating from ancient Sumerian use of sheep or goats, other peoples using pigs, rare
seashells, or other items as commodity money, people have sought ways to standardize and trade
contracts in the delivery of such items, to render trade itself more smooth and predictable.

Commodity money and commodity markets in a crude early form are believed to have originated
in Sumer where small baked clay tokens in the shape of sheep or goats were used in trade. Sealed
in clay vessels with a certain number of such tokens, with that number written on the outside,
they represented a promise to deliver that number. This made them a form of commodity money
- more than an I.O.U. but less than a guarantee by a nation-state or bank. However, they were
also known to contain promises of time and date of delivery - this made them like a modern
futures contract. Regardless of the details, it was only possible to verify the number of tokens
inside by shaking the vessel or by breaking it, at which point the number or terms written on the
outside became subject to doubt. Eventually the tokens disappeared, but the contracts remained
on flat tablets. This represented the first system of commodity accounting.

However, the commodity status of living things is always subject to doubt - it was hard to
validate the health or existence of sheep or goats. Excuses for non-delivery were not unknown,
and there are recovered Sumerian letters[citation needed] that complain of sickly goats, sheep that had
already been fleeced, etc.

If a seller's reputation was good, individual backers or bankers could decide to take the risk of
clearing a trade. The observation that trust is always required between market participants later
led to credit money. But until relatively modern times, communication and credit were primitive.

Classical civilizations built complex global markets trading gold or silver for spices, cloth, wood
and weapons, most of which had standards of quality and timeliness. Considering the many
hazards of climate, piracy, theft and abuse of military fiat by rulers of kingdoms along the trade
routes, it was a major focus of these civilizations to keep markets open and trading in these
scarce commodities. Reputation and clearing became central concerns, and the states which
could handle them most effectively became very powerful empires, trusted by many peoples to
manage and mediate trade and commerce.

Size of the market

The trading of commodities consists of direct physical trading and derivatives trading.The
commodities markets have seen an upturn in the volume of trading in recent years. In the five
years up to 2007, the value of global physical exports of commodities increased by 17% while
the notional value outstanding of commodity OTC (over the counter) derivatives increased more
than 500% and commodity derivative trading on exchanges more than 200%.[citation needed]

The notional value outstanding of banks’ OTC commodities’ derivatives contracts increased
27% in 2007 to $9.0 trillion. OTC trading accounts for the majority of trading in gold and silver.
Overall, precious metals accounted for 8% of OTC commodities derivatives trading in 2007,
down from their 55% share a decade earlier as trading in energy derivatives rose.

Global physical and derivative trading of commodities on exchanges increased more than a third
in 2007 to reach 1,684 million contracts. Agricultural contracts trading grew by 32% in 2007,
energy 29% and industrial metals by 30%. Precious metals trading grew by 3%, with higher
volume in New York being partially offset by declining volume in Tokyo. Over 40% of
commodities trading on exchanges was conducted on US exchanges and a quarter in China.
Trading on exchanges in China and India has gained in importance in recent years due to their
emergence as significant commodities consumers and producers

Spot trading
Spot trading is any transaction where delivery either takes place immediately, or with a
minimum lag between the trade and delivery due to technical constraints. Spot trading normally
involves visual inspection of the commodity or a sample of the commodity, and is carried out in
markets such as wholesale markets. Commodity markets, on the other hand, require the existence
of agreed standards so that trades can be made without visual inspection.

Forward contracts
A forward contract is an agreement between two parties to exchange at some fixed future date a
given quantity of a commodity for a price defined today. The fixed price today is known as the
forward price.

Futures contracts
A futures contract has the same general features as a forward contract but is transacted through a
futures exchange.

Commodity and futures contracts are based on what’s termed forward contracts. Early on these
forward contracts — agreements to buy now, pay and deliver later — were used as a way of
getting products from producer to the consumer. These typically were only for food and
agricultural products. Forward contracts have evolved and have been standardized into what we
know today as futures contracts. Although more complex today, early forward contracts for
example, were used for rice in seventeenth century Japan. Modern forward, or futures
agreements, began in Chicago in the 1840s, with the appearance of the railroads. Chicago, being
centrally located, emerged as the hub between Midwestern farmers and producers and the east
coast consumer population centers.

[Hedging

Hedging, a common (and sometimes mandatory[citation needed]) practice of farming cooperatives,

insures against a poor harvest by purchasing futures contracts in the same commodity. If the
cooperative has significantly less of its product to sell due to weather or insects, it makes up for
that loss with a profit on the markets, since the overall supply of the crop is short everywhere
that suffered the same conditions.

Whole developing nations may be especially vulnerable, and even their currency tends to be tied
to the price of those particular commodity items until it manages to be a fully developed nation.
For example, one could see the nominally fiat money of Cuba as being tied to sugar prices[citation
needed]
, since a lack of hard currency paying for sugar means less foreign goods per peso in Cuba
itself. In effect, Cuba needs a hedge against a drop in sugar prices, if it wishes to maintain a
stable quality of life for its citizens.[citation needed]

Delivery and condition guarantees

In addition, delivery day, method of settlement and delivery point must all be specified.
Typically, trading must end two (or more) business days prior to the delivery day, so that the
routing of the shipment can be finalized via ship or rail, and payment can be settled when the
contract arrives at any delivery point.

Standardization

U.S. soybean futures, for example, are of standard grade if they are "GMO or a mixture of GMO
and Non-GMO No. 2 yellow soybeans of Indiana, Ohio and Michigan origin produced in the
U.S.A. (Non-screened, stored in silo)," and of deliverable grade if they are "GMO or a mixture of
GMO and Non-GMO No. 2 yellow soybeans of Iowa, Illinois and Wisconsin origin produced in
the U.S.A. (Non-screened, stored in silo)." Note the distinction between states, and the need to
clearly mention their status as GMO (Genetically Modified Organism) which makes them
unacceptable to most organic food buyers.

Similar specifications apply for cotton, orange juice, cocoa, sugar, wheat, corn, barley, pork
bellies, milk, feedstuffs, fruits, vegetables, other grains, other beans, hay, other livestock, meats,
poultry, eggs, or any other commodity which is so traded.

Regulation of commodity markets

Cotton, kilowatt-hours of electricity, board feet of wood, long distance minutes, royalty
payments due on artists' works, and other products and services have been traded on markets of
varying scale, with varying degrees of success.[citation needed]

Generally, commodities' spot and forward prices are solely dependent on the financial return of
the instrument, and do not factor into the price any societal costs, e.g. smog, pollution, water
contamination, etc. Nonetheless, new markets and instruments have been created in order to
address the external costs of using these commodities such as man-made global warming,
deforestation, and general pollution. For instance, many utilities now trade regularly on the
emissions markets, buying and selling renewable emissions credits and emissions allowances in
order to offset the output of their generation facilities. While many have criticized this as a band-
aid solution, others point out that the utility industry is the first to publicly address it's external
costs. Many industries, including the tech industry and auto industry, have done nothing of the
sort.
CALL-OPTION

Strike Settle Underlyin

Symbol Date Expiry Price Price g Value pay-off
AXISBAN
K 2-Aug-10 26-Aug-10 500 852.8 1350.75 -2.05
AXISBAN
K 3-Aug-10 26-Aug-10 500 857.95 1356 -1.95
AXISBAN
K 4-Aug-10 26-Aug-10 500 833.25 1331.4 -1.85
AXISBAN
K 5-Aug-10 26-Aug-10 500 818.4 1316.6 -1.8
AXISBAN
K 6-Aug-10 26-Aug-10 500 816 1314.3 -1.7
AXISBAN
K 9-Aug-10 26-Aug-10 500 811.25 1309.8 -1.45
AXISBAN
K 10-Aug-10 26-Aug-10 500 796.3 1294.9 -1.4
AXISBAN
K 11-Aug-10 26-Aug-10 500 790.4 1289.1 -1.3
AXISBAN
K 12-Aug-10 26-Aug-10 500 816.8 1315.6 -1.2
AXISBAN
K 13-Aug-10 26-Aug-10 500 829.35 1328.2 -1.15
AXISBAN
K 16-Aug-10 26-Aug-10 500 837.5 1336.6 -0.9
AXISBAN
K 17-Aug-10 26-Aug-10 500 831.55 1330.75 -0.8
AXISBAN
K 18-Aug-10 26-Aug-10 500 853.95 1353.25 -0.7
AXISBAN
K 19-Aug-10 26-Aug-10 500 864.15 1363.55 -0.6
AXISBAN
K 20-Aug-10 26-Aug-10 500 867.55 1367 -0.55
AXISBAN
K 23-Aug-10 26-Aug-10 500 881.55 1381.25 -0.3
AXISBAN
K 24-Aug-10 26-Aug-10 500 872.35 1372.15 -0.2
AXISBAN
K 25-Aug-10 26-Aug-10 500 861.8 1361.7 -0.1
AXISBAN
K 26-Aug-10 26-Aug-10 500 0 1367.8 867.8

            847.8
Interpretation

The above table shows the calculations of pay-off of futures contract on AXIS-BANK stock futures for
the month of aug-2010.The expiry date of this contract is 26-aug-2010.The highest settlement price
Is 881.55 on 23-aug-2010 and lowest settlement price is 0 on 26-aug-2010.The net pay-off for this
contractis 847.8 rs.

1000
900
800
700
600
500
400
300
200
100
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
CALL OPTION

Strike Settle Underlying

Symbol Date Expiry Price Price Value Pay-off
BAJAJ-
AUTO 2-Aug-10 26-Aug-10 1200 1530.4 2725.5 -4.9
BAJAJ-
AUTO 3-Aug-10 26-Aug-10 1200 1517.9 2713.2 -4.7
BAJAJ-
AUTO 4-Aug-10 26-Aug-10 1200 1524.15 2719.7 -4.45
BAJAJ-
AUTO 5-Aug-10 26-Aug-10 1200 1525.15 2720.85 -4.3
BAJAJ-
AUTO 6-Aug-10 26-Aug-10 1200 1515.8 2711.7 -4.1
BAJAJ-
AUTO 9-Aug-10 26-Aug-10 1200 1508.75 2705.3 -3.45
BAJAJ-
AUTO 10-Aug-10 26-Aug-10 1200 1453.8 2650.5 -3.3
BAJAJ-
AUTO 11-Aug-10 26-Aug-10 1200 1360.75 2557.65 -3.1
BAJAJ-
AUTO 12-Aug-10 26-Aug-10 1200 1437.9 2635 -2.9
 BAJAJ-
AUTO 13-Aug-10 26-Aug-10 1200 1462.5 2659.8 -2.7
BAJAJ-
AUTO 16-Aug-10 26-Aug-10 1200 1462.85 2660.8 -2.05
BAJAJ-
AUTO 17-Aug-10 26-Aug-10 1200 1453.15 2651.25 -1.9
BAJAJ-
AUTO 18-Aug-10 26-Aug-10 1200 1483.05 2681.4 -1.65
BAJAJ-
AUTO 19-Aug-10 26-Aug-10 1200 1555 2753.55 -1.45
BAJAJ-
AUTO 20-Aug-10 26-Aug-10 1200 1595.9 2794.65 -1.25
BAJAJ-
AUTO 23-Aug-10 26-Aug-10 1200 1575.95 2775.3 -0.65
BAJAJ-
AUTO 24-Aug-10 26-Aug-10 1200 1649.1 2848.65 -0.45
BAJAJ-
AUTO 25-Aug-10 26-Aug-10 1200 1598.6 2798.4 -0.2
BAJAJ-
AUTO 26-Aug-10 26-Aug-10 1200 0 2779.4 1579.4
            1531.9

Interpretation

The above table shows the calculations of pay-off of futures contract on BAJAJ-AUTO stock futures for
the month of aug-2010.The expiry date of this contract is 26-aug-2010.The highest settlement price

Is 1649.1 on 24-aug-2010 and lowest settlement price is 0 on 26-aug-2010.The net pay-off for this
contractis 1531.9 rs.

1800

1600

1400

1200

1000

800

600

400

200

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
CALL-OPTION

Strike Settle Underlyin

Symbol Date Expiry Price Price g Value pay-off

ASHOKLEY 2-Aug-10 26-Aug-10 25 46.55 71.45 -0.1

ASHOKLEY 3-Aug-10 26-Aug-10 25 48.35 73.25 -0.1

ASHOKLEY 4-Aug-10 26-Aug-10 25 47.6 72.5 -0.1

ASHOKLEY 5-Aug-10 26-Aug-10 25 48 72.9 -0.1

ASHOKLEY 6-Aug-10 26-Aug-10 25 46.25 71.15 -0.1

ASHOKLEY 9-Aug-10 26-Aug-10 25 46.75 71.65 -0.1

ASHOKLEY 10-Aug-10 26-Aug-10 25 45.8 70.7 -0.1

ASHOKLEY 11-Aug-10 26-Aug-10 25 45.35 70.25 -0.1

ASHOKLEY 12-Aug-10 26-Aug-10 25 44.9 69.8 -0.1

ASHOKLEY 13-Aug-10 26-Aug-10 25 46.9 71.8 -0.1

ASHOKLEY 16-Aug-10 26-Aug-10 25 46.05 71 -0.05

ASHOKLEY 17-Aug-10 26-Aug-10 25 44.65 69.6 -0.05

ASHOKLEY 18-Aug-10 26-Aug-10 25 44.6 69.55 -0.05

ASHOKLEY 19-Aug-10 26-Aug-10 25 45.9 70.85 -0.05

ASHOKLEY 20-Aug-10 26-Aug-10 25 44.75 69.7 -0.05

ASHOKLEY 23-Aug-10 26-Aug-10 25 43.8 68.75 -0.05

ASHOKLEY 24-Aug-10 26-Aug-10 25 45.55 70.5 -0.05

ASHOKLEY 25-Aug-10 26-Aug-10 25 44.75 69.75 0

ASHOKLEY 26-Aug-10 26-Aug-10 25 0 71 46

            44.65

Interpretation

The above table shows the calculations of pay-off of futures contract on ASHOKLEY stock futures for
the month of aug-2010.The expiry date of this contract is 26-aug-2010.The highest settlement price
Is 48.35 on 03-aug-2010 and lowest settlement price is 0 on 26-aug-2010.The net pay-off for this
contractis 44.65 rs.
60

50

40

30

20

10

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
CALL-OPTION

Strike Settle Underlying

Symbol Date Expiry Price Price Value pay-off
ASIANPAIN
T 2-Aug-10 26-Aug-10 1250 1378.45 2623.35 -5.1
ASIANPAIN
T 3-Aug-10 26-Aug-10 1250 1353.15 2598.25 -4.9
ASIANPAIN
T 4-Aug-10 26-Aug-10 1250 1346.6 2591.95 -4.65
ASIANPAIN
T 5-Aug-10 26-Aug-10 1250 1355.25 2600.8 -4.45
ASIANPAIN
T 6-Aug-10 26-Aug-10 1250 1361.4 2607.15 -4.25
ASIANPAIN
T 9-Aug-10 26-Aug-10 1250 1415.3 2661.7 -3.6
ASIANPAIN
T 10-Aug-10 26-Aug-10 1250 1420.35 2666.95 -3.4
ASIANPAIN
T 11-Aug-10 26-Aug-10 1250 1433.75 2680.55 -3.2
ASIANPAIN
T 12-Aug-10 26-Aug-10 1250 1428.9 2675.9 -3
ASIANPAIN
T 13-Aug-10 26-Aug-10 1250 1407.35 2654.55 -2.8
ASIANPAIN
T 16-Aug-10 26-Aug-10 1250 1393.2 2641.05 -2.15
ASIANPAIN
T 17-Aug-10 26-Aug-10 1250 1383.05 2631.1 -1.95
ASIANPAIN
T 18-Aug-10 26-Aug-10 1250 1402.85 2651.1 -1.75
ASIANPAIN
T 19-Aug-10 26-Aug-10 1250 1455.6 2704.1 -1.5
ASIANPAIN
T 20-Aug-10 26-Aug-10 1250 1518.6 2767.3 -1.3
ASIANPAIN
T 23-Aug-10 26-Aug-10 1250 1509 2758.35 -0.65
ASIANPAIN
T 24-Aug-10 26-Aug-10 1250 1519.65 2769.2 -0.45
ASIANPAIN
T 25-Aug-10 26-Aug-10 1250 1500.55 2750.3 -0.25
ASIANPAIN
T 26-Aug-10 26-Aug-10 1250 0 2742.9 1492.9
            1443.55
Interpretation

The above table shows the calculations of pay-off of futures contract on ASIANPAINT stock futures for
the month of aug-2010.The expiry date of this contract is 26-aug-2010.The highest settlement price

Is 1519.65 on 24-aug-2010 and lowest settlement price is 0 on 26-aug-2010.The net pay-off for this
contractis 1443.55 rs.
1600

1400

1200

1000

800

600

400

200

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
CALL-OPTION

Strike Settle Underlyin

Symbol Date Expiry Price Price g Value pay-off
APIL 2-Aug-10 26-Aug-10 320 389.85 708.55 -1.3
APIL 3-Aug-10 26-Aug-10 320 391.4 710.15 -1.25
APIL 4-Aug-10 26-Aug-10 320 409.7 728.5 -1.2
APIL 5-Aug-10 26-Aug-10 320 404.15 723 -1.15
APIL 6-Aug-10 26-Aug-10 320 410.7 729.6 -1.1
APIL 9-Aug-10 26-Aug-10 320 430.3 749.35 -0.95
APIL 10-Aug-10 26-Aug-10 320 440.75 759.85 -0.9
APIL 11-Aug-10 26-Aug-10 320 436.55 755.7 -0.85
APIL 12-Aug-10 26-Aug-10 320 418.9 738.1 -0.8
APIL 13-Aug-10 26-Aug-10 320 420.5 739.75 -0.75
APIL 16-Aug-10 26-Aug-10 320 408.45 727.9 -0.55
APIL 17-Aug-10 26-Aug-10 320 418.5 738 -0.5
APIL 18-Aug-10 26-Aug-10 320 418.5 738.05 -0.45
APIL 19-Aug-10 26-Aug-10 320 414.85 734.45 -0.4
APIL 20-Aug-10 26-Aug-10 320 421.4 741.05 -0.35
APIL 23-Aug-10 26-Aug-10 320 430.45 750.25 -0.2
APIL 24-Aug-10 26-Aug-10 320 414.95 734.8 -0.15
APIL 25-Aug-10 26-Aug-10 320 415.25 735.2 -0.05
APIL 26-Aug-10 26-Aug-10 320 0 744 424
            411.1

Interpretation

The above table shows the calculations of pay-off of futures contract on APIL stock futures for the month
of aug-2010.The expiry date of this contract is 26-aug-2010.The highest settlement price

Is 440.75 on 10-aug-2010 and lowest settlement price is 0 on 26-aug-2010.The net pay-off for this
contractis 411.1 rs.
500
450
400
350
300
250
200
150
100
50
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
PUT-OPTION

Strike Settle Underlyin

Symbol Date Expiry Price Price g Value pay-off
ABAN 2-Aug-10 26-Aug-10 440 0 879.85 439.85
ABAN 3-Aug-10 26-Aug-10 440 0 894.9 454.9
ABAN 4-Aug-10 26-Aug-10 440 0 896.95 456.95
ABAN 5-Aug-10 26-Aug-10 440 0 906.65 466.65
ABAN 6-Aug-10 26-Aug-10 440 0 906.3 466.3
ABAN 9-Aug-10 26-Aug-10 440 0 912.4 472.4
ABAN 10-Aug-10 26-Aug-10 440 0 880.4 440.4
ABAN 11-Aug-10 26-Aug-10 440 0 858.65 418.65
ABAN 12-Aug-10 26-Aug-10 440 0 836.05 396.05
ABAN 13-Aug-10 26-Aug-10 440 0 831.3 391.3
ABAN 16-Aug-10 26-Aug-10 440 0 812.05 372.05
ABAN 17-Aug-10 26-Aug-10 440 0 797.05 357.05
ABAN 18-Aug-10 26-Aug-10 440 0 779.6 339.6
ABAN 19-Aug-10 26-Aug-10 440 0 836.35 396.35
ABAN 20-Aug-10 26-Aug-10 440 0 833.4 393.4
ABAN 23-Aug-10 26-Aug-10 440 0 821.2 381.2
ABAN 24-Aug-10 26-Aug-10 440 0 812 372
ABAN 25-Aug-10 26-Aug-10 440 0 796.55 356.55
ABAN 26-Aug-10 26-Aug-10 440 0 786.55 346.55
            7718.2

Interpretation

The above table shows the calculations of pay-off of futures contract on ABAN stock futures for the
month of aug-2010.The expiry date of this contract is 26-aug-2010.The highest pay-ff

Is 472.4 on 09-aug-2010 and lowest pay-off is339.6 on 18-aug-2010.The net pay-off for this contractis
7718.2 rs.
500
450
400
350
300
250
200
150
100
50
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
PUT-OPTION

Strike Settle Underlyin

Symbol Date Expiry Price Price g Value pay-off
ADANIEN
T 2-Aug-10 26-Aug-10 300 0 609.8 909.8
ADANIEN
T 3-Aug-10 26-Aug-10 300 0 622.95 922.95
ADANIEN
T 4-Aug-10 26-Aug-10 300 0 612.45 912.45
ADANIEN
T 5-Aug-10 26-Aug-10 300 0 609.6 909.6
ADANIEN
T 6-Aug-10 26-Aug-10 300 0 612.3 912.3
ADANIEN
T 9-Aug-10 26-Aug-10 300 0 608.7 908.7
ADANIEN
T 10-Aug-10 26-Aug-10 300 0 616.95 916.95
ADANIEN
T 11-Aug-10 26-Aug-10 300 0 612.75 912.75
ADANIEN
T 12-Aug-10 26-Aug-10 300 0 599.8 899.8
ADANIEN
T 13-Aug-10 26-Aug-10 300 0 626.65 926.65
ADANIEN
T 16-Aug-10 26-Aug-10 300 0 625.8 925.8
ADANIEN
T 17-Aug-10 26-Aug-10 300 0 628.35 928.35
ADANIEN
T 18-Aug-10 26-Aug-10 300 0 640.1 940.1
ADANIEN
T 19-Aug-10 26-Aug-10 300 0 639.6 939.6
ADANIEN
T 20-Aug-10 26-Aug-10 300 0 643.9 943.9
ADANIEN
T 23-Aug-10 26-Aug-10 300 0 653.95 953.95
ADANIEN
T 24-Aug-10 26-Aug-10 300 0 668.65 968.65
ADANIEN
T 25-Aug-10 26-Aug-10 300 0 650.65 950.65
ADANIEN
T 26-Aug-10 26-Aug-10 300 0 631.5 931.5
17614.4
            5

Interpretation

The above table shows the calculations of pay-off of futures contract on ADANIENT stock futures for
the month of aug-2010.The expiry date of this contract is 26-aug-2010.The highest pay-off

Is 968.65 on 24-aug-2010 and lowest pay-off is 899.8 on 26-aug-2010.The net pay-off for this contractis
17614.45 rs.
980

960

940

920

900

880

860
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
PUT-OPTION

Strike Settle Underlyin

Symbol Date Expiry Price Price g Value pay-off
APOLLOTYR
E 2-Aug-10 26-Aug-10 30 0 65.9 35.9
APOLLOTYR
E 3-Aug-10 26-Aug-10 30 0 65.95 35.95
APOLLOTYR
E 4-Aug-10 26-Aug-10 30 0 66.75 36.75
APOLLOTYR
E 5-Aug-10 26-Aug-10 30 0 65.95 35.95
APOLLOTYR
E 6-Aug-10 26-Aug-10 30 0 64.2 34.2
APOLLOTYR
E 9-Aug-10 26-Aug-10 30 0 65.2 35.2
APOLLOTYR
E 10-Aug-10 26-Aug-10 30 0 64.9 34.9
APOLLOTYR
E 11-Aug-10 26-Aug-10 30 0 64.35 34.35
APOLLOTYR
E 12-Aug-10 26-Aug-10 30 0 63.95 33.95
APOLLOTYR
E 13-Aug-10 26-Aug-10 30 0 64.15 34.15
APOLLOTYR
E 16-Aug-10 26-Aug-10 30 0 63.05 33.05
APOLLOTYR
E 17-Aug-10 26-Aug-10 30 0 65.5 35.5
APOLLOTYR
E 18-Aug-10 26-Aug-10 30 0 69.1 39.1
APOLLOTYR
E 19-Aug-10 26-Aug-10 30 0 68.2 38.2
APOLLOTYR
E 20-Aug-10 26-Aug-10 30 0 71.85 41.85
APOLLOTYR
E 23-Aug-10 26-Aug-10 30 0 76.35 46.35
APOLLOTYR
E 24-Aug-10 26-Aug-10 30 0 75.4 45.4
APOLLOTYR
E 25-Aug-10 26-Aug-10 30 0 73.75 43.75
APOLLOTYR
E 26-Aug-10 26-Aug-10 30 0 74 44
            718.5

Interpretation

The above table shows the calculations of pay-off of futures contract on APOLLOTYRE stock futures for
the month of aug-2010.The expiry date of this contract is 26-aug-2010.The highest pay-off

Is 46.35 on 23-aug-2010 and lowest pay-off is 33.05 on 26-aug-2010.The net pay-off for this contractis
718.5 rs.
50
45
40
35
30
25
20
15
10
5
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
PUT-OPTION

Strike Settle Underlyin

Symbol Date Expiry Price Price g Value pay-off
WIPRO 2-Aug-10 26-Aug-10 252 0 413.75 161.75
WIPRO 3-Aug-10 26-Aug-10 252 0 411.95 159.95
WIPRO 4-Aug-10 26-Aug-10 252 0 428.8 176.8
WIPRO 5-Aug-10 26-Aug-10 252 0 431.2 179.2
WIPRO 6-Aug-10 26-Aug-10 252 0 432.95 180.95
WIPRO 9-Aug-10 26-Aug-10 252 0 436.95 184.95
WIPRO 10-Aug-10 26-Aug-10 252 0 427.8 175.8
WIPRO 11-Aug-10 26-Aug-10 252 0 418.95 166.95
WIPRO 12-Aug-10 26-Aug-10 252 0 411.65 159.65
WIPRO 13-Aug-10 26-Aug-10 252 0 415 163
WIPRO 16-Aug-10 26-Aug-10 252 0 414.15 162.15
WIPRO 17-Aug-10 26-Aug-10 252 0 411.85 159.85
WIPRO 18-Aug-10 26-Aug-10 252 0 420.6 168.6
WIPRO 19-Aug-10 26-Aug-10 252 0 419.55 167.55
WIPRO 20-Aug-10 26-Aug-10 252 0 411.7 159.7
WIPRO 23-Aug-10 26-Aug-10 252 0 412.95 160.95
WIPRO 24-Aug-10 26-Aug-10 252 0 408.1 156.1
WIPRO 25-Aug-10 26-Aug-10 252 0 399.55 147.55
WIPRO 26-Aug-10 26-Aug-10 252 0 399.8 147.8
            3139.25

Interpretation

The above table shows the calculations of pay-off of futures contract on WIPRO stock futures for the
month of aug-2010.The expiry date of this contract is 26-aug-2010.The highest pay-off

Is 184.95 on 09-aug-2010 and lowest pay-off is 147.8 on 26-aug-2010.The net pay-off for this contractis
3139.25 rs.
200
180
160
140
120
100
80
60
40
20
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
PUT-OPTION

Strike Settle Underlyin

Symbol Date Expiry Price Price g Value pay-off
ACC 2-Aug-10 26-Aug-10 540 0 834.35 1374.35
ACC 3-Aug-10 26-Aug-10 540 0 829.4 1369.4
ACC 4-Aug-10 26-Aug-10 540 0 820.55 1360.55
ACC 5-Aug-10 26-Aug-10 540 0 815 1355
ACC 6-Aug-10 26-Aug-10 540 0 827.85 1367.85
ACC 9-Aug-10 26-Aug-10 540 0 844.6 1384.6
ACC 10-Aug-10 26-Aug-10 540 0 847.4 1387.4
ACC 11-Aug-10 26-Aug-10 540 0 842.35 1382.35
ACC 12-Aug-10 26-Aug-10 540 0 839.8 1379.8
ACC 13-Aug-10 26-Aug-10 540 0 844 1384
ACC 16-Aug-10 26-Aug-10 540 0 833.75 1373.75
ACC 17-Aug-10 26-Aug-10 540 0 837.3 1377.3
ACC 18-Aug-10 26-Aug-10 540 0 840.1 1380.1
ACC 19-Aug-10 26-Aug-10 540 0 883.35 1423.35
ACC 20-Aug-10 26-Aug-10 540 0 871.05 1411.05
ACC 23-Aug-10 26-Aug-10 540 0 874.8 1414.8
ACC 24-Aug-10 26-Aug-10 540 0 865.8 1405.8
ACC 25-Aug-10 26-Aug-10 540 0 868.9 1408.9
ACC 26-Aug-10 26-Aug-10 540 0 868.2 1408.2
26348.5
            5

Interpretation

The above table shows the calculations of pay-off of futures contract on ACC stock futures for the month
of aug-2010.The expiry date of this contract is 26-aug-2010.The highest pay-off

Is 1423.35 on 19-aug-2010 and lowest pay-off is 1355 on 05-aug-2010.The net pay-off for this contractis
26348.55 rs.
1440

1420

1400

1380

1360

1340

1320
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
 FINDINGS

The present projectwork has been undertaken to study the pay-off of

Futures &option contract for selected equities for the month of aug-2010.

During the study the following facts have been identified.

CALL-OPTION

1.AXIS-BANK call-option contract has a pay-off of 847.8rs.where it has ahighest

Settlement price of 881.55rs on 23-aug-2010.&lowest settlement price of 0rs on

26-aug-2010.

2.BAJAJ-AUTO call-option contract has a pay-off of 1531.9rs.where it has a highest

Settlement price of 1649.1rs on 24-aug-2010&lowest settlement price of 0rs on

26-aug-2010.

3.ASHOKLEY call-option contract has a pay-off of 44.65rs.where it has a highest

Settlement price of 48.35rs on 03-aug-2010 & lowest settlement price of 0rs on

26-aug-2010.

4.ASIANPAINT call-option contract has a pay-off of 1443.55rs.where it has a highest

Settlement price of 1519.65rs on 24-aug-2010 & lowest settlement price of 0rs on

26-aug-2010.

5. APIL call-option contract has a pay-off of 411.1rs.where it has a highest

Settlement price of 440.75rs on 10-aug-2010 & lowest settlement price of 0rs on

26-aug-2010.

PUT-OPTION

1.ABAN stock contract has a pay-off of 411.1rs.where it has a highest

Pay-off of 472.4rs on 09-aug-2010 & pay-off 339.6rs on 18-aug-2010.

2. ADANIENT stock contract has a pay-off of 17614.45rs.where it has a highest

Pay-off of 968.65rs on 09-aug-2010 &lowest pay-off 899.8rs on 26-aug-2010.

3. APOLLO TYRE stock contract has a pay-off of 718.5rs.where it has a highest

Pay-off of 46.35rs on 23-aug-2010 &lowest pay-off 33.05rs on 26-aug-2010.

.4. WIPRO stock contract has a pay-off of 3139.25rs.where it has a highest

Pay-off of 184.95rs on 09-aug-2010 &lowest pay-off of 147.8rs on 26-aug-2010.

5. . ACC stock contract has a pay-off of 26348.55rs.where it has a highest

Pay-off of 1423.35rs on 19-aug-2010 &lowest pay-off of 1355rs on 05-aug-2010.