CHAPTER 1: Introduction to Derivatives 

  • Types of Derivative Contracts,
  • History of Financial Derivatives Markets,
  • Participants in a Derivatives Market,
  • Economic Function of the Derivative Market

CHAPTER: 2 Understanding Interest Rates and Stock Indices 

  • Understanding Interest rates,
  • Understanding the Stock Index,
  • Economic Significance of Index Movements,
  • Index Construction Issues,
  • Desirable Attributes of an Index,
  • Applications of Index

CHAPTER 3: Futures Contracts, Mechanism and Pricing Forward Contracts 

  • Limitations of forward markets,
  • Introduction to Futures,
  • Distinction between Futures and Forwards Contracts,
  • Futures Terminology,
  • Trading Underlying vs. Trading Single Stock Futures,
  • Futures Payoffs,
  • Pricing Futures,
  • Pricing Stock Futures.

CHAPTER 4: Application of Futures Contracts 

  • Understanding Beta,
  • Numerical illustration of Applications of Stock Futures

CHAPTER 5: Options Contracts, Mechanism, and Applications 

  • Option Terminology,
  • Comparison between Futures and Options,
  • Options Payoffs,
  • Application of Options

CHAPTER 6: Pricing of Options Contracts and Greek Letters 

  • Variables affecting Option Pricing,
  • The Black Scholes Merton Model for Option Pricing (BSO),
  • The Greek

CHAPTER 7: Trading of Derivatives Contracts 

  • Futures and Options Trading System,
  • The Trader Workstation,
  • Futures a nd Options Market Instruments,
  • Criteria for Stocks and Index Eligibility for Trading,
  • Charges

CHAPTER 8: Clearing and Settlement 

  • Clearing Entities,
  • Clearing Mechanism,
  • Settlement Procedure,
  • Risk Management,
  • Margining System

CHAPTER 9: Regulatory Framework 

  • Securities Contracts (Regulation) Act, 1956,
  • Securities and Exchange Board of India Act, 1992,
  • Regulation for Derivatives Trading,
  • Adjustments for Corporate Actions

CHAPTER 10 : Accounting for Derivatives 

  • Accounting for futures,
  • Accounting for options,
  • Taxation of Derivative Tra nsaction in Securities