Business Essay examples

15495 Words Feb 20th, 2015 62 Pages
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Preface

The National Stock Exchange of India Ltd. (NSE), set up in the year 1993, is today the largest stock exchange in India and a preferred exchange for
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They provide settlement guarantee by the Clearing Corporation thereby reducing counterparty risk. Options can be used for hedging, taking a view on the future direction of the market or for arbitrage. Options are also helpful for implementing various trading strategies such as straddle, strangle, butterfly, collar etc. which can help in generating income for investors under various market conditions. This module is being introduced to explain some of the important and basic Options strategies. The module which would be of interest to traders, investors, students and anyone interested in the options markets. However, it is advisable to have a good knowledge about the basics of Options or clear the NCFM Derivatives Markets (Dealers) Module before taking up this module. To get a better clarity on the strategies, it is important to read the examples and the pay-off schedules. The pay-off schedules can be worked out using a simple excel spreadsheet for better understanding. We hope readers find this module a valuable addition which aids in understanding various Options Trading Strategies.

OPTIONS .....................................................................................................................................................................................3 1. 1.1 1.2 INTRODUCTION TO OPTIONS

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