8

Derivatives and Their Valuation

Chapter Query

Data released by Bank for International Settlements on May 15,2002:

The rapid expansion of the OTC derivatives market to $3.8 trillion, a gross market value growth of 24 percent is driven by interest rate instruments, dollar and euro interest rate, and swap markets. Asummaryofthe derivatives market trend over the years and the product wise breakdown for the year are given in the following figure.

Should investors in the domestic as well as global capital markets consider the equity product segment of 1.9 per cent of the total derivative market segment seriously?

Chapter Goal

Risk is inherent ...

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