14

Risk Management and Trading with Derivatives

Chapter Query

The derivative contract quotations for ITC shares traded on the NSE are given in the following table.

 

Table 14.1 Derivative Contract Quotations for ITC.

An investor who wants to trade inthe market can use all the above quotations of ITC. Howwould you build acombination of these derivatives, such that the unique advantage of each is combinedfor the benefit of investors?

Chapter Goal

The chapter introduces the nature of risk of shares in the secondary market. Risk measures to quantify risk are introduced. The use of derivative trading to minimise risk is the main objective ...

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