5

Single Stock Futures and Stock Index Futures

After completing this chapter, you will be able to answer the following questions:

  • What are single stock futures?
  • What are the uses of single stock futures?
  • How are single stock futures priced?
  • What are stock indexes and stock index futures?
  • How are stock index futures priced?
  • What are the uses of stock index futures?
  • How can index futures be used for managing equity portfolio risk?

BOX 5.1 BSE Equity Derivatives cross Rs. 928 crores

The interest among investors on index futures and options as well as on single stock futures and options has increased considerably. On Novemebr 26, 2019, the turnover of equity derivatives on Bombay Stock Exchange (BSE) reached a record of INR 928.28 crores. ...

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