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 147
futures. Most of the indexes used for futures comprise major stocks in the market so that movement of
the index eectively reects the movement of the market as a whole.
e creation of index futures can be attributed to the need of portfolio managers to hedge their portfo-
lio risk. Portfolio managers are concerned about possible decreases in the value of portfolio, and manag-
ing the risk by dealing in each stock would be very expensive. Instead, these portfolio managers preferred
a mechanism through which they could hedge the portfolio risk at a low cost. Since the main purpose of
futures contracts is to enable hedging, index futures were created for portfolio managers to hedge the risk
of ...
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

Sundaram Janakiramanan
Derivatives and Risk Management

Derivatives and Risk Management

Madhumathi Madhumathi, Ranganatham Ranganatham

Publisher Resources

ISBN: 9781299447547Publisher Website