Skip to Main Content
Derivatives and Risk Management, 1st Edition
book

Derivatives and Risk Management, 1st Edition

by Sundaram Janakiramanan
May 2024
Intermediate to advanced content levelIntermediate to advanced
542 pages
27h 26m
English
Pearson India
Content preview from Derivatives and Risk Management, 1st Edition
Single Stock Futures and Stock Index Futures 127
On January 1, Rajesh owns 6,000 shares of IOC and is planning to sell them on February 28. Each con-
tract size is 600 shares of IOC. e price of the February IOC futures contract is INR 790. e spot price
of IOC is INR 777.30 on January 1. If the spot price of IOC shares on February 28 is INR 544.40, show
how Rajesh can hedge the price risk and what will be the result of this hedge?
Step 1: Since Rajesh is concerned about a possible price decrease, he would take a short position in the
futures.
Step 2: Rajesh would use the IOC futures contract to hedge this price ...
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Start your free trial

You might also like

Derivatives and Risk Management

Derivatives and Risk Management

Madhumathi Madhumathi, Ranganatham Ranganatham
Derivatives and Risk Management

Derivatives and Risk Management

Sundaram Janakiramanan

Publisher Resources

ISBN: 9781299447547Publisher Website