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
Futures Contracts 89
Gain = Dierence in futures price × Contract size × Number of contracts
= (5,640 – 5,600) × 50 × 5 = INR 10,000
is gain is added to the margin amount, and the margin account balance will be INR 70,000 + INR
10,000 = INR 80,000. Instead of increasing to INR 5,640, if the price decreased to INR 5,560, the trader
will make a loss.
Loss = Dierence in futures price × Contract size × Number of contracts
= (5,600 – 5,560) × 50 × 5 = INR 10,000
is loss is subtracted from the margin amount, and the balance in the margin account will be equal to
INR 70,000 – INR 10,000 = INR 60,000.
It is necessary that the CMs post margins whenever ...
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